New York Business Development Corporation 
October 2006 Newsletter
News Highlights

n Empire State CDC…..SBA 504 on the rise in FY 2006
In FY 2006 Empire State CDC approved 202 SBA 504 loans supporting $143 million in loan participations with 72 different lending partners.  Approvals, closings and the number of different lending partners all increased.  More than ever before, our lending partners are taking advantage of the SBA 504 loan program to meet the needs of their small business borrowers. 

n NYBDC & World Economy
Chet Sadowski of our New York City office was among a group of economic developers who met with a delegation from North Rhein Westphalia, Republic of Germany, to discuss economic development vehicles in New York State and their application to other areas.

n NYBDC Board Approves Dividend
NYBDC has approved a dividend of 75 cents per share for shareholder of record as of November 1, 2006 to be paid on or before November 30, 2006.

n Eng is elected member of New York City loan committee
We are pleased to welcome Richard Eng, Vice President, Flushing Savings Bank, to our New York City loan committee.

n Wallkill Valley Federal Savings joins membership
Located in Wallkill, Ulster County, Wallkill Valley FS recently became our 144th member bank. 
 

n SBA Announces Reduction in 504 Fee
Both the SBA’s 7(a) guaranty program and the 504 Loan Program have fees paid by the lender and borrower that offset the SBA’s cost to operate the loan programs.  The SBA calls these “zero subsidy” programs as the cost to operate the loan program is shifted from the general taxpayer to those who benefit directly from the program.  The fees decrease the SBA’s dependence on Congressional funding and the programs are self sufficient.   

The SBA recently announced a reduction in the fee that a borrower pays for a 504 Loan.  The interest rate for a 504 loan (currently 6.55% for a loan greater than $1 million and 7.00% less than $1 million), includes a small percentage that goes directly to the SBA.  This portion has decreased from .192 to .018 percent for the upcoming fiscal year.  This portion of the rate has declined since 1999 when it was .875 percent.  This decline is a result of the positive repayment performance of borrowers with 504 loans.

President's Remarks
Lender's Corner - 504 Project Costs
Success Story  NYBDC News Highlights  
Employee Spotlight - Thomas Green  Welcome Aboard
September Loan Approvals  Current Loan Rates  Contact Us