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|Articles - March 2011|
|Wednesday, March 02, 2011|
Page 3 of 4
But opposition from bankers hasn’t stopped small-business owners from organizing. A coalition of 500 small-scale business owners and farmers led by Jim Houser of the Hawthorne Auto Clinic in Portland and Mark Kellenbeck of Cascade Management in Grants Pass has formed to promote the idea. Supporters have organized boisterous public hearings to make the case that a state bank would put taxpayer money to work for Oregonians.
Roughly 150 people attended one such forum in Northeast Portland on Feb. 1. Audience members voiced support for the idea and empathized with small-business owners and farmers denied loans due to their size. The prevailing themes of the speeches made by both the audience and panel were the pervasive lack of credit available to small-business owners and small farms, how to fund and structure a state bank, and why Oregon needs one.
“One of the things about the state bank is that it is not not-for-profit, but that the profit belongs to the people,” said Barbara Dudley, co-chair of the Oregon Working Families Party. Dudley told the crowd that the bank could not only provide money to businesses that need capital, but could also become a viable revenue source for the state.
To become a source of revenue rather than expense, the state would have to choose its loans carefully. Several major state loans have failed magnificently in recent years, such as the $20 million loan extended to the now-bankrupt Cascade Grain ethanol plant in Clatskanie.
One of the small businesses featured in the Main Street report is Allegri Wine Shop & Art Gallery in downtown Gresham, in a neighborhood that recently lost a bridal shop, a toy shop and a bike shop. Owner Bill Allegri says he has been unable to get a bank loan, so he’s had to refinance his home and reduce inventory. His original business plan called for hiring an employee to enable him and his wife Kathy to travel to wine regions and build relationships with winemakers to grow the business. Instead they have done “what needs to be done,” including going without health insurance. “Fortunately we have good health,” he says.
Another supporter is Barbara McLean, who runs the One Stop Sustainability Shop in Northeast Portland with her daughter Jessica Ilalaole. They have struggled since launching in December 2009 with the goal of providing affordable everyday products to help people live more sustainable lives. Their shelves are stocked with dustpans made from recycled plastic, envelopes layered with old newspaper instead of bubble wrap and handmade soaps.
But it’s hard to pay the bills with idealism. After failing to get a loan through her credit union, McLean took out a home equity loan. She and her daughter moved from the pricey Pearl District to funky Alberta, where they’re hoping business will pick up as the weather warms. “We’d like to pay ourselves at some point,” says Ilalaole. Later in the interview, she mentions matter-of-factly that the shop’s unusual prices date back to the launching of the business, when “we didn’t know what we were doing.”
North Dakota’s Eric Hardmeyer says a state-run bank must avoid the temptation to loan to every business that needs cash with the hope that it will succeed. “You can’t save every deal,” he says. “You can’t save every town. Some deals you just have to walk away from.”
Friday, June 27, 2014
BY JASON NORRIS | OB BLOGGER
Over the last several months we have seen a wave of cross-border acquisitions, primarily U.S.-based companies looking to purchase non-U.S.-based companies. There are a few reasons for this, but the main culprit is the U.S. corporate tax system. The United States has one of the highest corporate tax rates in the world.
Monday, June 30, 2014
Oregon Business magazine won two silver awards for excellence in writing in the National American Society of Business Publication Editors Western region competition.
Monday, July 14, 2014
BY TERRY "STARBUCKER" ST. MARIE
I really didn’t know that much about angel investing, but I did know a lot about the entrepreneurial spirit.
Monday, August 18, 2014
Portland is in the middle of another construction boom, with residential and office projects springing up downtown, in the Pearl and Old Town. OB Web Editor Jessica Ridgway documents the new wave.
Thursday, July 24, 2014
BY CLIFF HOCKLEY | OB GUEST CONTRIBUTOR
With the increasing retirements of Baby Boomers, a massive real estate shift has created a significant increase in demand for NNN properties. The result? Increased demand has triggered higher prices and lower yields.
Wednesday, August 06, 2014
BY LINDA BAKER | OB EDITOR
Portland startup Green Endeavor strikes gold, inking a partnership with Underwriters Laboratories, an Illinois-based consulting and certification company with offices in 46 countries.
Tuesday, July 01, 2014
BY HANNAH WALLACE | OB BLOGGER
Demand for organic food continues to soar: Last year, sales of organic food rose to $32.3 billion — up 10% from 2012. In Oregon, organic produce wholesaler Organically Grown Co. has been championing organic growing methods for four decades.
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Forest Grove sees growth in the burgeoning food and beverage scene.
Fifty-one Lane Powell lawyers were recently selected by their peers for inclusion in The Best Lawyers in America® (Best Lawyers) 2015; of those selected, 23 lawyers are from the Firm’s office in Portland, Oregon.
Barran Liebman is proud to announce that Andrew Schpak, a Partner of the firm, has been named Chair of the American Bar Association’s Young Lawyers Division for the 2014-2015 bar year.
Vanessa Sturgeon and Miller Nash LLP were selected as leaders in encouraging female advancement.