文章基本信息

标题：NYBDC, banks launch two loan programs
期刊名称：CNY Business Journal
印刷版ISSN：1050-3005
出版年度：1996
卷号：Nov 25, 1996
出版社：C N Y Business Review, Inc.

NYBDC, banks launch two loan programs

ALBANY--The New York Business Development Council (NYBDC) is offering two new loan programs through Business New York, a private company comprised of 150 member banks. Both programs offer below-market-rate loans to small businesses.

One program is targeted at small businesses locating in Economic Development Zones (EDZs). The EDZ Loan Program makes a total of $2.5 million available to companies in EDZs across the state.

The other program is a partnership between the NYBDC and participating banks. It establishes a $5-million, low-interest financing pool.

"These two initiatives are efforts to intensify lending activity across the state," says Robert W. Lazar, president of NYBDC. "By making financing available at very attractive rates, NYBDC-Business New York hopes to spur business growth from Long Island to Buffalo."

The EDZ Loan Program provides 9.5-percent, fixed-interest loans or up to $250,000 each to businesses unable to win traditional bank financing. The loans can be used for working capital, to refinance debt, or to purchase equipment. They mature in seven years or less and must have at least a 75-percent Small Business Administration (SBA) guarantee.

In keeping with the economic-development mission of the EDZs, loans provided through this program are expected to Stimulate job creation and retention. If the EDZ Loan Program is successful during its first six months, NYBDC-Business New York will consider adding another $2.5 million to the pool, according to Lazar.

The NYBDC/Bank Partnership Loan Program is available in situations where a member bank is willing to finance 50 percent of the loan while the NYBDC-Business New York finances the other 50 percent. For this program, NYBDC-Business New York has reduced its normal interest rate from prime for a non-SBA-guaranteed loan to prime plus a half percent for an SBA-guaranteed loan. These rates are in effect until the loan matures. As with the EDZ Loan Program, NYBDC-Business New York will provide an additional S5 million for the NYBDC/Bank Partnership Loan Program if there is strong demand.

NYBDC-Business New York is a privately owned financial organization established by the state Legislature and funded by 150 banks across the state. It has offices in New York City, Rochester, and Albany and provides long-term financing for small businesses that a not eligible for standard bank loans. It now has about $155 million in loans outstanding.