Finger Lakes Economic Development Center - Project Financing

Project Financing

FLEDC offers 3 direct financing vehicles for commercial, industrial and service oriented enterprises. They include:

The Yates County Revolving Loan Fund (RLF)

The Finger Lakes EDC helps in the aid and support of local economic development projects by providing financial assistance in the form of the Yates County Revolving Loan Fund. The mission of the Yates County RLF is to provide high quality employment opportunities for people within Yates County. To achieve this goal, the Yates County RLF makes available supplemental loans at interest rates below market standards for manufacturers and other businesses that meet the criteria for the program.

Requirements

Must be a Yates County business and project
RLF made in support of primary bank financing
10% owner equity
Capital investment oriented
Job creation or retention

Terms

Fixed rate term loan financing at New York Prime (at time of approval)
Financing term up to 7 years
Collateral required
Personal guaranty required

Bonds: Taxable and/or Tax-Exempt:

Under New York State Law, an IDA is authorized to issue bonds and notes. Subject to the limitations imposed by the Internal Revenue Code of 1986, as amended, the IDA can issue taxable and tax-exempt bonds, the proceeds of which can be used to fund all or substantially all of the costs of a project. It is important to understand that an IDA provides no credit enhancement and issues bonds on a non-recourse basis. Therefore, the ability to sell the bonds is premised solely on the creditworthiness of the Company. While IDA involvement does not guarantee the bonds in any way, the involvement does convey certain value to the lender, includes (1) lower start up costs based on incentive packet (2) a known, or predictable, phase-in of property taxes and (3) a local commitment to the project.

Requirements

Capital Investment project must approach at least $1 million to be cost effective
Private placements of bonds are also available
For Tax-Exempt bonding, a company may NOT have had more than $10 million in actual and planned capital investment expenditures (including actual amount of bond issue) within the same municipality going 3 years back and 3years forward

Terms

Interest rates are generally 2 - 3% below a taxable loan from commercial lenders
May be structured as a fixed rate, variable rate or low floater bond
Fixed rate and variable bonds can be structured with maturities ranging from 15 - 30 years

Small Cities (CDBG):

The Small Cities Grant (CDBG) is a federally funded program that provides grants to smaller communities to foster capital investment and job creation and to expand business opportunities for implementing a variety of community and economic development activities. These activities are focused towards neighborhood revitalization, economic development, improved community facilities and services.

Requirements

Company must be located in Yates County and making a capital investment into the organization that will result in the creation or retention of at least 7 new jobs

Terms

Money may be in form of low interest loan or grant (FLEDC determined)
Minimum grant/loan of $100,000
Maximum grant/loan of $750,000
Maximum of $15,000 per job created/retained (low to moderate income)

The FLEDC also works with local and regional partners to help a company find capital financing including:

Lyons National Bank
Community Bank
5-Star Bank

Rochester Finger Lakes Regional Planning Council
Rochester Finger Lakes Regional Development Corporation
Rural Opportunities Inc.
New York Business Development Corporation