U.S. Senator Jeff Merkley today announced the award of a $49,275 USDA grant to the nonprofit Hatch Innovation, Inc. to connect rural small businesses with local people who want to invest in them through Oregon’s newly launched community public offering process.
Hatch Innovation is working with the Northeast Oregon Economic Development District on the project to support a “grow your own” business development and fundraising climate that improves entrepreneurs’ access to capital, allows ordinary residents to invest in local businesses and, ultimately, create and save jobs in the region.
In January 2015, Oregon created new rules creating a pathway for registered Oregon small businesses and startups to raise capital up to $250,000 directly from anyone who lives in Oregon. These community public offerings are a type of securities-based crowdfunding.
Hatch Innovation’s educational “InvestOR Ready Accelerator program” will directly assist small, emerging and growing rural businesses in Baker, Wallowa and Union counties, while also training local economic development professionals to learn how to offer this program in the future. This will be the first time local technical assistance has been made available to help Northeast Oregon businesses learn the rules, file comprehensive disclosure documents, develop marketing outreach materials, and complete the financial prospectuses required to put forth a community public offering.
In addition, Hatch Innovation will deliver workshops to educate potential investors on the community public offering process and build their capacity to make sound investment decisions.
The grant is provided through the Rural Business Development Grant (RBDG) Program administered by U.S. Department of Agriculture (USDA) Rural Development to support the development and expansion of private businesses and job creation in rural communities. Funding is contingent upon the recipient meeting the terms of the grant agreement.
Congress established the RBDG Program under the 2014 Farm Bill. The new program combines USDA’s former Rural Business Enterprise Grant (RBEG) and Rural Business Opportunity Grant (RBOG) programs. Like its predecessors, the new program is designed to assist with the startup or expansion of small and emerging private businesses in rural communities.