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Small Biz & Middle Income Hsg Fin Assist

Source: PDF pp. 407-409 ↗ · raw: 407 · 408 · 409

Breadcrumb: Service Area Summaries > Community & Economic Development > Prosper Portland > Small Biz & Middle Income Hsg Fin Assist

City of Portland Fiscal Year 2026-27 Proposed Budget Community & Economic Development > Prosper Portland > Small Biz & Middle Income Hsg Fin Assist Small Biz & Middle Income Hsg Fin Assist Budget Revenues by Fund 2023-24 Actuals 2024-25 Actuals 2025-26 Revised Budget 2026-27 Proposed Internal Revenues $0 $2,124,079 $2,512,795 $2,341,762 General Fund $0 $2,124,079 $2,512,795 $2,341,762 Grand Total $0 $2,124,079 $2,512,795 $2,341,762 Program Expenses by Major Object Program expenses only include personnel, internal materials and services, external materials and services, and capital. 2023-24 Actuals 2024-25 Actuals 2025-26 Revised Budget 2026-27 Proposed External Materials and $0 $1,477,327 $2,512,795 $2,341,762 Services Grand Total $0 $1,477,327 $2,512,795 $2,341,762 Program Description and Goals Prosper Portland invests in small businesses with direct funding for operating and capital needs, centering businesses with limited access to capital. Through various funding sources, including one-time funding, federal Economic Development Administration funds, and citywide strategic investment funds, Prosper Portland offers flexible loans and grants to meet unique business or property needs. Loan programs offer flexible repayment terms tailored to help a business grow and stabilize and partner with primary lenders to bridge financing gaps. While grant programs focus primarily on physical improvements – including immediate repairs and broader tenanting improvements – loan programs support working capital, equipment purchases and business growth/expansion, as well as physical improvements of real property in leased or owner-occupied spaces. Programming supports businesses through direct financial assistance in alignment with other Prosper Portland programs in small business and traded sector specific strategies for business growth, job creation and inclusive entrepreneurship. This direct funding together with related tailored assistance supports 1) the retention and creation of quality jobs by improving business competitiveness and inclusion practices and 2) generational wealth creation through business ownership. Services 407

City of Portland Fiscal Year 2026-27 Proposed Budget Office to residential conversion, commercial property lending, small business lending, clean energy financing Equity Impacts In FY 2024-25, Prosper Portland provided 16 loans for a total of $33.3 million in business and commercial property lending. Clients range from businesses in the Food & Beverage Cluster to office to residential conversion projects. The lending production forecast for FY 2025-26 is $23 million, with $16 million allocated to funding for middle income housing projects, $3.8 million for owner- occupied commercial building acquisition loans and $2.77 million for working capital/ equipment loans. As of March 2026, a total of 130 units of middle-income housing projects are in the active loan pipeline (funded by SIF and/or PCEF), and it is estimated that approximately 100 additional units will be funded with the $16 million allocation of SIF during the fiscal year. From July 2023 through June 2025, Prosper Portland disbursed 611 Repair grants for a total of more than $1.9 million, 281 Restore/Winter Storm grants for a total of more than $2.9 million a combined total of more than $4.8 million. Changes to Program Prosper Portland directly underwrites, finances and administers loans to small businesses as part of our broader economic and urban development programming and activities. In FY 2025-26, the team expects to place $25 million in business and commercial property lending citywide. Given current market conditions, Prosper Portland anticipates seeing increased business loan requests as the retail and office markets rebound from the pandemic. We also expect to receive increased office-to-housing conversion loan requests as we get increased coverage of projects we are currently investing in in Old Town and the Central Eastside. Prosper Portland's small business and commercial property financing capital resources include:

  • Economic Development Administration. Prosper Portland administers an Economic Development Administration (EDA) Revolving Loan Fund (RLF) on behalf of the City. The City was the initial Grantee of a U.S. Department of Commerce EDA RLF Grant first initiated in 1979 and originally authorized by City of Portland Resolution #32267 adopting a Comprehensive Economic Development Strategy (CEDS). City Council recently approved the transfer of ownership of the funds to Prosper Portland and Prosper Portland is in the process of defederalizing these funds.
  • Strategic Investment Fund. Through revenues generated from the return on investments the agency has made via loan payments, operating properties, and proceeds from the sale of properties for public-private development projects, the Strategic Investment Fund serves short-term and long-term community needs including citywide small business working capital and commercial property loans. Changes to commercial property loan products are currently underway to better align with community needs.
  • Portland Clean Energy Community Benefits Fund. In partnership with the Bureau of Planning and Sustainability and the Portland Clean Energy Community Benefits Fund (PCEF), Prosper Portland is developing new loan and grant programs to support PCEF energy efficiency objectives and complement our existing small business and commercial property investment tools. Prosper Portland is developing a new Small Commercial Building Energy Efficiency (BEE) Grant program to support small businesses and small commercial building owners in completing energy efficiency upgrades, reducing energy use and costs, improving health, and increasing resilience. The grant program launched in the spring of 2026. A portion of PCEF funds are also allocated for providing access to capital, which includes funding for small to midsize commercial property projects, including office to residential conversions. While capital resources are available in existing and some new Tax Increment Finance districts, General Fund support is critical to ensure Prosper Portland can provide access to capital citywide. This citywide staffing and overhead also maximizes General Fund investment by further leveraging EDA, SIF, PCEF, and other capital funding available for direct grant and loan awards to small businesses. Resources
  • General Fund: Prosper Portland's ongoing portion of General Fund is currently projected at a similar level as FY 2025-26. If the current service level add package is not approved, then 36% of the budget will be cut and staff capacity will decrease, impacting program implementation, partner support, and outcome tracking. 408

City of Portland Fiscal Year 2026-27 Proposed Budget

  • Strategic Investment Fund: Staff, funded through a combination of the General Fund and SIF, work to get more than $5,000,000 in resources out annually in loans to small businesses, commercial development, and middle-income housing projects.
  • Portland Clean Energy Community Benefits Fund: These dollars are managed through an intergovernmental agreement with PCEF. Prosper Portland has budgeted $16.5 million for FY 2026-27 for new loan and grant investments. Funds are allocated for the new Small Commercial BEE Grant program and providing access to capital for other projects, including office to residential conversions. Additional resources are forecasted out through FY 2028-29. 409

Parent: Prosper Portland · PDF: pp. 407-409 ↗