- 1Oregon offers up to $1 million in exchange for a percentage of future sales.
- 2Repayment typically ends once 2X the funded amount has been returned, over three to five years.
- 3Loans are collateralized and personally guaranteed.
The State of Oregon runs its own revenue-based financing program. The Oregon Royalty Loan Program provides small businesses with up to $1 million in exchange for a percentage of future sales and a payback of roughly twice the funded amount.
How the program works
The state brands the cost as a "2X Royalty," which is effectively a 2.0 factor rate. Eligibility depends on historical and projected sales. Royalty loans are repaid monthly as a predetermined percentage of sales or revenue until a total amount, typically 2X, has been returned.
An official flyer says merchants owe the royalty percentage only until they have paid back 2X the funded amount, which could take three to five years. After that, royalty payments stop and the repayment obligation is satisfied. The percentage of sales varies by project. The flyer's example calls the product "revenue-financing," and promotional materials say the structure may track a business's cash flow more closely.
What state rules say
Oregon's administrative rules define a royalty under the program as payments calculated as a percentage of the borrower's sales or revenue, intended to produce an adequate rate of return, typically up to 2X, as determined at the sole discretion of the department. The rules treat 2X as an adequate return. The product is collateralized and personally guaranteed.
Similar public programs
Oregon's offering resembles New York City's Revenue-Based Loan Program, promoted by Mayor Mamdani, and the State of Washington's Revenue-Based Financing Fund.
Source reporting: deBanked.
