Businesses Turn to SOREDI for Loans

Small businesses say its harder to get the loans they need.

Southern Oregon Regional Economic Development or SOREDI has a revolving loan program to fill the gap for many businesses in Jackson and Josephine counties who can't get a loan from commercial banks, or need a supplement to their existing loan.

SOREDI has provided more than 160 loans over the last 14 years, anywhere from $10,000 to $150,000 to businesses that need help with land purchases, new buildings, equipment or working capital.

But in the past few months SOREDI says more businesses have been coming to them for help.

Some companies say they wouldn't be in business if it wasn't for the nonprofit's loan assistance.

One year ago Cascade Peak Spirits started up out of this small warehouse in Ashland.

In April, the company shipped out it's first bottles of Organic Nation brand vodka. In August, it's first bottles of gin.

Now the company is shipping out about 40 cases of spirits a month. Cascade Peak isn't out of the red yet, but owner Diane Paulson says it's doing well.

"We're getting there we're growing adding a distributor in California doing internet sales from New York," said Paulson.

Paulson says as a new business owner with no experience in the distilling industry, it was almost impossible to get a loan from a commercial bank. But they did qualify for a $150, 000 dollar loan from SOREDI.

"Without SOREDI's money we wouldn't have anything here," Paulson said. "They were the kickstarter for us."

"We're providing financing that fills that gaps that otherwise small businesses would not be able to meet for capital and funding requirements," said Ron Fox, SOREDI executive director.

SOREDI has seen a 40 percent increase in businesses applying for loans over the past few months. Last year the organization provided more than $1 million in loans, this year, they plan to give out about $1.5 million.

"A lot of businesses are unsure if this is the right time to expand..more importantly we're available help businesses not only expand but remain competitive and remain in operation keep those jobs in place, that's a good asset to have for the community," Fox said.

Paulson says a new ginger vodka will make it's debut in January. The company also hopes to move to a much bigger building on Mistletoe Road in Ashland, sometime next year.

SOREDI will host a seminar Tuesday, featuring two of Oregon's top equity investors at the RCC/SOU Higher Education Center in Medford.

Below is a synopsis of the event from the organization:

The first presentation will be from Bob Ward, co-managing partner at Capybara Partners, a seed capital fund located in Portland. Bob will provide his perspectives on angel and seed round investing, based on his personal experiences as well as from his role as the fund manager for the Portland Angel Network. Bob's extensive experience in how start-up businesses need to be ready for seeking angel or seed round equity investments will be important information for area entrepreneurs.

Following Bob Ward we will welcome David Chen, from Equilibrium Capital, Portland, Oregon, an investment firm committed to funding and growing companies in the area of sustainability. Prior to Equilibrium Capital, David was a principal in Oregon Venture Partners. With over 20 years of experience in early stage equity investment David will share his insights to what investors are looking for early stage business growth opportunities. David is also the Chair of the Oregon Innovation Council, so he has extensive knowledge regarding what leading-edge commercial business developments mean to Oregon's economy which he will also share with the audience at the event

Rounding out the November 18^th Jefferson Grapevine program will be an update report on the progress underway by the Jefferson Grapevine committee to develop interest among accredited investors in the region for the formation of an angel investor network for Southern Oregon!

The event will be held from 5 p.m. to 7:30 p.m.

Register online at https://www.soredi.org/BuyProducts.asp If you have questions, please contact Marybeth Buonassissi at 541 773-8946 or marybethb@soredi.org