A number of loan programs are available to assist in financing projects that will redevelop vacant or underutilized upper levels in commercial buildings for residential reuse. In addition to competitive bank programs, the following economic development programs are available:
Al Tech Loan Fund
Loan terms range from $35,000 to $300,000. Wall Street Prime minus 3% with a floor of 5%, fixed for the term of the loan. Loan proceeds can be used to purchase fixed assets or for working capital.
Community Preservation Corporation (CPC) – (518) 463-1776 or www.communityp.com
CPC is a private mortgage lender specializing in financing low-moderate and middle-income housing throughout New York and New Jersey. CPC lends for large and small apartment buildings (occupied or vacant) and for new construction development. CPC is sponsored by 94 banks and insurance companies.
Entrepreneurial Assistance Center Loan Fund
Loans ranging from $1,000 to $25,000 can be used to purchase fixed assets or for working capital. Wall Street Prime plus 2%, fixed for the term of the loan.
Empire State Development – (518) 292-5261 or www.empire.state.ny.us
New York State assists businesses with low-rate loans to modernize facilities and operations, access new markets, develop new products and improve overall competitiveness. ESD offers the Linked Deposit Program (LDP), a public-private partnership that provides businesses with affordable capital based on bank loans at reduced interest rates. These bank loans are subsidized by corresponding “linked” state deposits.
Linked Deposit Program – (ESD)
New York Business Development Corporation
U.S. Small Business Administration 504 Program
Loans enable growing businesses to secure longterm, fixed-rate financing for major fixed assets. This low-cost, fixed-rate, second mortgage financing may be exempt from mortgage recording tax; 10- and 20-year terms are available.
Finance Consortium
The Economic Development Finance Consortium provides a vehicle for small businesses to present their financial needs to a number of local, regional and state commercial lenders, as well as representatives from public lending agencies including economic developers and the U.S. Small Business Administration.