Our work complements conventional banking as we work with our Partner Banks to provide innovative loans to small and medium-sized businesses, many of which do not meet the requirements for traditional financing.
For a list of NYBDC Partner Banks, click here >
There are several reasons why a bank would want to partner with NYBDC to promote small business lending, including reducing risk, increasing small business lending, obtaining CRA credit, increasing profit and making more loans.
NYBDC’s Community Partners, who are economic development companies, IDAs, and chambers of commerce, make many referrals.
For a list of NYBDC Community Partners, click here >
NYBDC's Veterans' Loan Program provides term loans at a below market fixed rate for current or former members of the armed forces. Loans for working capital, business acquisition and purchase of machinery, real estate and equipment are available. The program can be combined with other financing offered by our lending partners as participants or as separate credit facilities.
NYBDC's Micro Loan Program provides an alternative to credit scoring for smaller loan requests. We recognize that some applications that fail to meet credit scoring models are worthy of consideration, and our staff of trained loan officers reviews each application on a case-by-case basis. Loans of $50,000 to $150,000 are available for working capital, real estate, leasehold improvements, machinery and equipment, relocation, debt refinancing and business acquisitions.
We have financed many different types of equipment for our borrowers ranging from desks, chairs and computers to industrial handling and manufacturer's equipment, vehicles, construction equipment, printing presses, airplanes, barges, trains and more.
Typically, we match the repayment term of the loan with the useful life of the equipment being purchased ranging from three to 10 years. For equipment that has a useful life of greater than 10 years, such as a printing press, we can utilize the SBA 504 loan program. This program allows for up to 10 years repayment with a fixed interest rate and as little as a 10 percent down payment. It is only available for the acquisition of equipment, not for refinancing of equipment.
We can help a business refinance its debt in order to reduce current interest rates and/or convert from a floating rate to a fixed rate, reduce monthly payments by extending the loan maturity, convert short-term debt to long-term debt, or use the equity that’s built up in fixed assets to provide cash for the growth of the business.
The SBA 504 Loan Program is administered through our affiliated company, Empire State CDC: The 504 Company. This fixed asset economic development program is designed to promote growth and job creation in small and medium-sized businesses and is intended for use by businesses with good track records and promising growth opportunities.
Loans from $25,000 to $5.5 million can be made for land acquisition and improvements, building acquisition and/or construction, and machinery and equipment. Applicants must have net worth of less than $15 million and net profit of less than $5 million.