It is not uncommon for employers to make loans to their new executives. The purpose of such a loan may be to assist the executive in the purchase of a home or other relocation expenses. Frequently, the loan is forgivable over a period of time provided the executive remains employed. The loan also may be forgivable if the executive's employment terminates for specified reasons (e.g., death, disability or termination by the employer without cause).
A Promissory Note — Forgivable Loan, also known as a forgivable loan agreement, is a legal document that outlines the terms and conditions under which one party (the lender) provides a loan to another party (the borrower) with the understanding that the loan amount may be forgiven under certain circumstances. In Oregon, there are various types of Promissory Note — Forgivable Loans available, each designed for specific purposes. These loan types include: 1. Oregon Small Business Forgivable Loan: This type of forgivable loan is specifically designed to support small businesses in Oregon. It provides financial assistance to eligible businesses, with a portion or the entire loan amount being forgiven if certain conditions are fulfilled, such as maintaining a specified workforce, meeting business expansion requirements, or contributing to the local economy. 2. Oregon Education Forgivable Loan: Aimed at encouraging individuals to pursue higher education, the Oregon Education Forgivable Loan offers financial support to students attending eligible educational institutions in the state. The loan can be partially or fully forgiven upon completion of specific requirements, such as graduating with a certain GPA, working in a designated field or underserved area, or performing community service. 3. Oregon Affordable Housing Forgivable Loan: This forgivable loan program aims to address the housing needs of low-income individuals or families in Oregon. The loan is provided to either individuals or developers and is forgivable if the property remains affordable for a specified period, usually through rental or sale price restrictions. 4. Oregon Energy Efficiency Forgivable Loan: This type of forgivable loan is designed to promote energy efficiency in residential or commercial properties in Oregon. It provides financial assistance to property owners who implement energy-saving measures, such as installing energy-efficient appliances, upgrading insulation, or using renewable energy sources. A portion or the entire loan amount can be forgiven if the energy efficiency improvements meet or exceed certain standards. Oregon Promissory Note — Forgivable Loans offer an alternative financing option for various sectors, helping individuals, businesses, and communities achieve their goals. It is important to consult with legal professionals and review the specific terms and conditions of each loan program to fully understand the obligations, forgiveness criteria, repayment terms, and any potential consequences for non-compliance.
