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Small Business Legal Clinic

Small Business Legal Clinic new model for private-public partnerships

(Portland, Ore.)—With 95 percent of Portland businesses employing fewer than 50 workers, small businesses are the backbone of Portland’s economy. But until recently, there were no coordinated legal services in Oregon dedicated to serving the needs of small, low-income, and minority entrepreneurs. Enter a woman with a vision. Lisa LeSage, assistant dean and director of business law program at Lewis & Clark Law School, has organized a law clinic to serve small business clients in distressed areas that could not otherwise afford legal help. The Small Business Legal Clinic will open its doors with an official ribbon cutting ceremony on Thursday, Oct. 5, at 11 a.m.

“The Small Business Legal Clinic is a powerful example of how public/private collaboration and a passion for economic justice can create a much-needed resource for marginalized communities, while simultaneously providing valuable education to future lawyers—the collaborative nature of this clinic makes it an innovative model for the country,” said LeSage.

After obtaining funding commitments from the major Portland law firms Tonkon Torp, Schwabe Williamson & Wyatt and Stoel Rives, as well as the Portland Business Alliance and Bank of the West, LeSage approached the Portland Mayor’s Office and the Portland Development Commission and suggested a public/private partnership between the city and Lewis & Clark. The clinic received a $100,000 grant from the city and reduced-cost office space from the Portland Development Commission within its own building on the corner of Northwest Fifth and Everett Streets in downtown Portland.

"We are delighted to be housing the Small Business Legal Clinic here at our offices in Old Town,” said PDC Executive Director Bruce Warner. “Small business outreach is a major focus of our economic development efforts and the ability to offer these legal services to the businesses we work with is invaluable.”

In addition to providing practical experience for Lewis & Clark law students the clinic ensures the increased availability of business-transactions attorneys able to provide pro bono legal assistance in their areas of expertise.

“This is a win-win situation for business-transactions lawyers wanting to do pro bono legal work and clients who otherwise are unable to access traditional legal services,” said Maggie Finnerty, former finance lawyer for Stoel Rives and newly hired clinical law professor for the Small Business Legal Clinic. “It brings together lawyers, law students and clients in a way legal education and traditional legal services never have before.”

LeSage said the clinic is believed to be the only business law clinic in the country that has a coordinated pro bono component certified by the state bar, as well as funding by the city, the chamber of commerce, business and major law firms. By supporting small businesses, the clinic will encourage the creation of new jobs, strengthen the city’s economic infrastructure by assisting individual small businesses, and facilitate community development. The clinic will also promote volunteerism by familiarizing law students with the needs of low-income small businesses, by introducing them to the tradition of pro bono legal work, and by expanding the opportunities for interested business-transaction lawyers to engage in socially meaningful pro bono activities.

“We jumped at the chance to support the clinic’s invaluable contributions to Portland’s business and law school communities,” said Robert Hirshon, CEO of Tonkon Torp, the clinic’s initial Leadership Partner. “The clinic’s work will enable many talented individuals to attain their dreams of creating a successful business, as well as encouraging greater depth and diversity in the local economy.”

The potential client base for the Small Business Legal Clinic is estimated to be at least 1,000 low-income small businesses annually in the Portland metropolitan area, and is expected to impact approximately 3,000 people. This client base includes small business owners served through the clinic’s collaborations with small business incubators, as well as those who seek help directly from the clinic.

“The clients are typical of thousands of small business owners throughout Portland,” said Finnerty. “One client wants to start a graphic design company. She consults the clinic for help in determining the type of entity to set up, making sure she has the proper business structure. Not only can we help with forming the appropriate entity and filing with the state Corporations Commission, but also with creating and maintaining the correct corporate paperwork. That way, if she is later subject to an Internal Revenue Service audit, she will be able to provide proof that she indeed has the type of corporate structure she reported in her filings. Another client simply needs someone to review a draft of a lease. Even a simple task of reviewing a lease can make a big difference to a client—for example, what will happen if the business doesn’t generate enough revenue to pay the rent? Lots of legal issues that seem ‘small’ can cripple a small business. That’s where we come in.”

Lewis & Clark Law School, is a private, American Bar Association-accredited school of law located in Portland. Founded in 1884, the law school offers a well-rounded legal curriculum that prepares lawyers for practice in all fields of law. Several of the school’s programs are nationally recognized as innovative in the field of legal education, including its strong business and intellectual property program. Integral to the law school’s mission of training professionals is its commitment to engage students in clinical experiences that will benefit diverse communities and inspire its students to greater leadership.

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