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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2890
Sponsored by Representative EVANS (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act allows the OIC to give grants for economic development in rural areas of this
state. (Flesch Readability Score: 60.6).
Authorizes the Oregon Innovation Council to make grants to small businesses for seed and
start-up capital and gap funding to create and support invention, innovation and economic develop-
ment in rural areas of this state. Authorizes the council to provide monetary awards to the winners
of contests that are designed to attract invention, innovative and entrepreneurial solutions and op-
portunities in rural areas of this state.
Establishes the Oregon Fund for Rural Small Business Development. Continuously appropriates
moneys in the fund to the council to implement the grant program.
A BILL FOR AN ACT
Relating to small business economic development in rural areas of the state.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Sections 2 and 3 of this 2025 Act are added to and made a part of ORS 284.701
to284.749.
SECTION 2.(1) As used in this section:
(a) “Gap funding” means funding provided to an Oregon small business located in a rural
area to fund the initial phase of a business or invention endeavor until funding for subse-
quent phases of the endeavor can be obtained from another source.
(b) “Rural area” means an area located entirely outside of the acknowledged Portland
Metropolitan Area Regional Urban Growth Boundary and the acknowledged urban growth
boundaries of cities with populations of 30,000 or more.
(c) “Seed and start-up capital” means financing that is provided for the initial phases of
development, refinement and commercialization of an invention, technology, product, process
orinnovation.
(d) “Small business” means a business that has 100 or fewer employees.
(2) The Oregon Innovation Council, in consultation with the Oregon Business Develop-
ment Department, may make grants from the Oregon Fund for Rural Small Business De-
velopment established under section 3 of this 2025 Act to:
(a) Provide seed and start-up capital and gap funding to small businesses in rural areas
of this state whose principal objectives are to create and support invention, innovation and
economic development in rural areas of this state; and
(b) Provide monetary awards to winners of contests designed to attract invention, inno-
vative and entrepreneurial solutions and opportunities in rural areas of this state.
(3) To qualify for a grant under subsection (2) of this section, a proposal must be sub-
mitted in accordance with the standards and requirements adopted by the Oregon Innovation
Council by rule, which must, at a minimum, require that a proposal:
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 1778 HB2890
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(a) Contain a verified statement that the applicant has established or intends to establish
a small business in a rural area of this state and spends, or will spend, at least 50 percent
of the payroll on employees who are residents of a rural area of this state;
(b) Demonstrate that the objectives and goals of the applicant align or will align with
regional business strategies;
(c) Demonstrate that the applicant has relevant workforce development skills and objec-
tives; and
(d) Demonstrate that the objectives and goals of the applicant integrate with regional
educational and training opportunities and community need.
(4) The Oregon Innovation Council shall give preference in awarding grants under this
section to an applicant that demonstrates that the applicant has or will establish partner-
ships between and collaborations with schools, research institutions and public and private
entities to create and support invention, innovation and economic development in rural areas
of this state.
(5) The Oregon Innovation Council shall adopt rules to implement the provisions of this
section.
SECTION 3. (1) The Oregon Fund for Rural Small Business Development is established
in the State Treasury, separate and distinct from the General Fund. Interest earned by the
Oregon Fund for Rural Small Business Development shall be credited to the fund.
(2) Moneys in the Oregon Fund for Rural Small Business Development shall consist of:
(a) Amounts donated to the fund;
(b) Amounts appropriated or otherwise transferred to the fund by the Legislative As-
sembly;
(c) Income earned on moneys in the fund; and
(d) Other amounts deposited in the fund from any source.
(3) Moneys in the fund are continuously appropriated to the Oregon Innovation Council
for the purpose of making grants under section 2 of this 2025 Act.
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