PDC Business Loans Help 42 Local Businesses Grow;
Activity Surpasses Previous Year

PDC Involvement Covers Broad Range of Assistance,
from Operating Efficiencies to Job Retention and Creation

The Portland Development Commission (PDC) Business Finance Program has far exceeded last year’s business loan activity, providing 57 loans or grants, more than twice the number in the previous fiscal year. Forty-two businesses received financing assistance, a 50% increase over the number of firms assisted in fiscal 2002-03. The program leveraged $7,148,345 in economic development loans, attracting $49,102,919 in private investment, and leading in turn to the retention and creation of 2,128 jobs.

PDC provided financing for several companies which have headquarters offices in the Portland area and chose to remain here and expand, including Integra Telecom, with 283 jobs, Thortex, with 130 jobs, and Qmedtrix, with 75. The list of assisted companies also includes more than a dozen minority-owned or emerging-small-business companies: AJ Java, Alberta Street Market, A.S.K. Design Corporation, Boom Vang Consulting, C&M Mercedez & BMW, Exodus Spa, Gold Star Commercial Cleaning, Isite Design, Mudai Restaurant, Netropole, Orozco Auto Recycling, Pacific Civil Design, Pacific Dental Group, Razzo e Tostapane, and Shin Shin Foods.

In addition, the PDC Storefront Program, a building façade revitalization grant program in eligible neighborhoods, assisted 108 businesses, committed $1,101,351 and leveraged another $7,754,275 in private investment.

PDC’s work with Triad Speakers, which specializes in custom electronics design and installation, exemplifies the arc of provided assistance, from preliminary studies to tenant improvement financing and subsequent job retention & creation.

Defying the current industry trend to outsource manufacturing offshore, Triad Speakers is dedicated to manufacturing its products in Oregon. Company founder Larry Pexton chose to invest in needed production facilities in the Airport Way urban renewal area, retaining 60 jobs and promising to create an additional 20. The company initially received technical assistance, coordinated by PDC, from the Oregon Manufacturing Extension Partnership (OMEP), and the DOS (Development Opportunity Services) program. OMEP is a PDC partner providing training and consultation with productivity and streamlined operations, commonly referred to as lean manufacturing. PDC provided grant funds to help pay for the OMEP services.

The DOS grant, secured early in 2004, provided the company with a site survey, equipment documentation, and design drawings for product flow, production lines and space requirements to provide a facility capable of three times current production volume. DOS-funded work also developed economic alternatives for sustainable development/green building design and implementation. Triad then received loan funds for tenant improvements through PDC’s Quality Jobs Program (QJP) and incentive funds from the Economic Opportunity Fund (EOF).

“With the help of PDC, OMEP and our own excellent people, we were able to aim at tripling our production rather than more incremental expansion. OMEP has been very helpful in allowing us to streamline our processes, and in general keep jobs in the U.S. which otherwise would have gone offshore,” said Pexton. “We went from looking to expand a single production line into actually being able to do three production lines, because of the strategically valuable funding from PDC,” he added.

The establishment of the Economic Opportunity Fund and changes to the Quality Jobs Program, which were approved by the Commission in July 2003, were key factors in the increased loan activity this fiscal year. “Companies are seeing the city as more of a resource,” said Don Mazziotti, PDC Executive Director. “This heightened activity also points to a higher level of optimism in the business community, as local companies seek added investment for expansion.”

PDC Business Finance loans are deployed to assist both start-up and existing businesses. Depending on the types of loan products, funds support expansion, acquisition and rehabilitation of commercial buildings, tenant improvements, working capital and equipment purchase. The Business Finance lending strategy is “gap financing” – making funds available after private and commercial debt financing and equity have been attracted and additional funds are still needed to complete a project. Gap financing maximizes the leverage of PDC resources, ensuring that public dollars are used as broadly as possible.

PDC is currently working with more than two dozen businesses for possible financial assistance. Additional information on PDC Business Finance programs and business assistance is available online at www.pdc.us/business, or by calling PDC at 503-823-3321.

###

For more information contact:

• Martha Richmond , PDC
  503-823-3296

for PDC's News & Information E-mail Lists
View the e-mail archive | Unsubscribe from our e-mail Lists
Find us on: