Loan fund applications are now open for Oregon’s $25 million Industrial Site Loan Fund, which offers financing for planning, utilities, transportation access, land preparation and environmental work tied to industrial sites. Business Oregon is accepting applications through 5 p.m. Pacific on September 4, 2026, with awards expected in mid-to-late October.
Key Takeaways
- Oregon has allocated $25 million to the Industrial Site Loan Fund for the current two-year budget period.
- Planning projects may seek $25,000 to $250,000 through forgivable financing.
- Development projects may request between $25,000 and $4 million.
- Applications are due at 5 p.m. Pacific on September 4, 2026.
- Development requests will be scored on readiness, site outcomes, matching resources, industrial symbiosis and inclusion in an economic development plan.
The Industrial Site Loan Fund is intended to increase the supply of Oregon land prepared for manufacturing, logistics, food processing, clean technology, semiconductor supply chains and other traded-sector uses. Business Oregon issued the 2026 request for applications on July 8 after the state allocated $25 million to the program.
Industrial zoning alone does not make a property construction-ready. A site may still need engineering, permits, larger parcels, road access, rail connections, power capacity, broadband, water, sewer service, grading or environmental work before a new facility can proceed.
The program offers two financing paths. Planning projects can receive forgivable loans of up to $250,000, while development projects can seek standard loans of up to $4 million. The minimum request for either category is $25,000.
Eligible industrial land must be planned and zoned for industrial use, suitable for new facilities or expansions, and connected to major transportation or freight infrastructure. The program sits alongside broader regional economic development work involving jurisdictions and organizations that help employers evaluate sites and expansion resources.
Which Projects Qualify and What Can the Money Cover?
The Industrial Site Loan Fund is open to eligible public entities and certain private site owners. Public applicants may include Oregon cities, counties, qualifying ports, the Port of Portland, federally recognized tribal councils in the state and airport districts.
Eligible Applicants
A private owner may qualify when it has an agreement with a local jurisdiction to develop public infrastructure serving a privately owned industrial site. Development work must occur on, or directly serve, land zoned for industrial use.
Projects that mainly move business activity from one part of Oregon to another are excluded unless the activity would otherwise be located outside the state. Routine operations, ongoing maintenance, debt retirement, fines and penalties are also ineligible.
Covered Development Costs
Eligible expenses include property acquisition and parcel assembly, easements, access roads, rail spurs, marine or airport access, intersections, turning lanes, traffic signals, sidewalks, storm drains and transit stops.
The loan fund may also cover broadband, electric power, natural gas, water and sewer infrastructure. Grading, natural-resource mitigation, approved brownfield remediation, construction, consultant services and certain off-site property purchases may also qualify.
Up to 20% of an award may cover eligible pre-award expenses that meet program requirements. The request for applications states that qualifying costs may be considered when incurred on or after July 6, 2026.
Clean technology and advanced manufacturing appear in the development scoring framework, connecting the program to sectors associated with clean tech job growth in the Portland area. Eligibility, however, depends on the applicant, site and proposed work rather than the industry label alone.
Planning Support
Planning projects may cover land-use work, engineering, surveys, environmental reviews, feasibility studies, permit preparation and other professional services. Forgiveness depends on completing the approved scope and meeting contract conditions established by the Oregon Business Development Department.
How Will Business Oregon Score Applications and Set Loan Terms?
Business Oregon will screen submissions for completeness, applicant eligibility, project eligibility and required underwriting information. Late or incomplete applications will not advance to scoring.
Scoring Structure
Development projects can receive up to 100 points. Readiness to proceed and reasonable cost estimates account for 30 points, the largest category.
Projects may receive up to 25 points for advancing site readiness or creating industrial land for traded-sector uses. Matching resources account for up to 25 points, industrial symbiosis accounts for 10 points, and inclusion in a local or regional economic development plan accounts for 10 points.
Industrial symbiosis refers to collaboration involving the exchange of materials, energy, water or byproducts for economic, environmental or community benefit. Planning projects use a separate 50-point system, with 30 points for needed professional services and 20 points for permit-related work.
Underwriting and Repayment
A high score does not create an automatic award. Recommended development applications must pass underwriting, and Business Oregon must determine that repayment appears reasonable and prudent before final approval.
Interest accrues on disbursed development funds. Regular principal and interest payments begin five years after the financing agreement is executed. The maximum term is the shorter of 30 years or the useful life of the project, and there is no early repayment penalty.
Public entities must provide a full-faith-and-credit pledge. Private owners must provide an all-available-funds pledge, while recipients must offer collateral or another acceptable security interest.
Submission Requirements
Applicants must provide a signed application, project description, work plan, schedule, line-item budget and current cost estimate. Development applicants must also submit financial records, debt information, five-year projections, repayment sources and documents for proposed security.
Applications must be emailed in PDF format and may not exceed 100 pages or 20 megabytes. Compressed files are not accepted. The deadline is 5 p.m. Pacific on September 4, 2026, and conditional award notices are tentatively expected in mid-to-late October.
Frequently Asked Questions
What Is the Oregon Industrial Site Loan Fund?
The Industrial Site Loan Fund is a $25 million Business Oregon program for planning and development work tied to eligible industrial land. It is designed to help move qualifying sites closer to construction readiness.
How Much Can an Applicant Request?
Planning projects may request between $25,000 and $250,000 through forgivable financing. Development projects may request between $25,000 and $4 million through standard loan financing.
Who Can Apply for the Loan Fund?
Eligible applicants include Oregon cities, counties, qualifying ports, the Port of Portland, federally recognized tribal councils, airport districts and certain private owners working with local jurisdictions. Each applicant must meet the program’s definition of a project sponsor.
When Are Applications Due?
Applications must reach Business Oregon by email no later than 5 p.m. Pacific on September 4, 2026. Late or incomplete submissions will not be scored.
