Small communities often have a hard time attracting and retaining businesses. Many companies are lured away by the siren song of big cities with their large and talented labor pool as well as community resources. This has caused small and rural areas to create business incubators and economic development councils to help startups and small businesses.
The Central New York Regional Planning and Development Board (CNY RPDB) is a local entity that is looking to stimulate growth in Central New York with several different programs. One program, the Central New York Enterprise Development Fund (CNY EDF), helps local small businesses finance their growth and business development needs.
What is a CNY Economic Development Loan?
The goal of the CNY EDF is to help create and retain jobs in the area by attracting and supporting small businesses. They help small businesses leverage private funds by offering loans for business growth projects.
CNY Economic Development loans are meant to be a part of a total financing package used by a business to fund a project. The maximum loan amount is $100,000 and the amount of the loan can’t exceed 50% of the total project cost.
In addition, CNY EDF requirements state that the small business must invest at least 10% of its private equity to finance the project. The remaining funds for the project can be obtained by qualifying for a commercial loan, grant procurement, or through other business financing options.
A CNY Economic Development loan can only be used for projects geared towards improving property, purchasing equipment, or for creating long term working capital.
CNY EDF Loan Terms
Central New York Economic Development small business financing is a revolving loan with a 12-60-month term. In addition to the 10% private equity, businesses must have a form of collateral they can use to secure the loan. The type of collateral depends on the amount of financing requested and the purpose of the loan.
There is a non-refundable $250 loan application fee and the business is responsible for the closing costs of the loan.
CNY Economic Development Loan Criteria
To qualify for a CNY EDF loan you need to be a manufacturer or service firm located in one of the following counties:
The company can only have a maximum of 100 employees and be able to prove the organization has created new wealth in the region by either creating or retaining jobs.
CNY Economic Development Loans and Your Business
If your business meets the above criteria, then you may be able to qualify for a CNY EDF loan. Our loan specialists may be able to answer your questions about CNY Economic Development loans and how they can be an important part of financing your business growth project.