Greater New York Development Co.  a Division of Long Island Development Corporation, is a regional economic development, not-for-profit corporation which makes long term, affordable loans to small businesses and not-for-profit entities.  

145 Year Old Company
Expands with Help of
Innovative New Loan Fund


Sentinel Printing Co. is an example of a long standing small business which has undergone numerous transitions and changes to become the successful business it is today. The company traces its roots to 1858 when a local resident opened a print shop in Hempstead and started to publish a weekly paper called the Queens County Sentinel. MORE

Buffalo Food Products
Distributor Expands
   
 

Buffalo based Regional integrated Logistics Inc. (Regional) – in business since 1996- is expanding its food warehouse/ distribution business. Occupying a unique niche in the industry, Regional warehouses and distributes general merchandise and food products for other companies in need of warehouse & transportation outsourcing. MORE

  

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NEW MARKET LOAN FUND FACTS
 
Loan Amount:
   Up to 40% of total project costs – maximum amount of $2.5 MM.
Eligible Borrowers:
   Small businesses and not-for-profit entities (501c3).
Typical Loan Structure:
   50% of total project costs from bank or other lender in first position, 40% from GNYDC (in second lien position), 10% equity from borrower. (Percentages may vary). GNYDC can subordinate to tax exempt financing.
Use of Funds:
   Purchase, construct, renovate buildings including business condos and co-ops; refinance of existing mortgages to obtain capital for borrower; and, purchase of major machinery or equipment.
Loan Term:
   25 year fully amortized (The first lien loan must be at least 10 year term).
Interest Rates:
   Below Prime. Fixed for the first 7 years at 7-year US Treasury rate plus 250 basis points; then fixed for the remaining 18 years at 10-year US Treasury rate plus 250 basis points.
GNYDC Loan Fees:
   GNYDC’s fees are based on our loan only, as follows:
   

Loan Application Fee:
Loan Commitment Fee:
Legal Fee:

 

$1,500
1-2% of GNYDC loan minus $1,500
$2,250 – $5,500
    Note: Borrower will be responsible to pay costs of real estate appraisal, environmental reports, title insurance and recording fees. These costs may be financed.
Other Lender Fees:
   The first lien lender will determine its own interest rate, term and fees. There is no fee paid by the lender to GNYDC. GNYDC will make every effort not to duplicate documentation requirements.
GNYDC Loan Structure:
   GNYDC’s New Market Loan Fund is designed to serve as a “takeout” permanent loan. When the project involves new construction or large-scale renovation, the other lender provides a temporary bridge loan. For straight real estate purchases, GNYDC can co-fund with the other lender and there is no need for interim financing.
What GNYDC needs to prequalify your project:
 

♦ Address of the property being financed
♦ Project budget and proposed loan request breakdown
♦ Most recent 3-years financial statements and/or federal corporate tax returns
♦ Current Interim Business Financial Statement
  (less than 90 days, may be company prepared)
♦ Debt/Loan schedule for the business (less than 90 days)
♦ Current A/R and A/P schedule (less than 90 days)
♦ Personal Financial Statements for each 20% or more owner.

For Information Call Us at 866-433-5432 or email Us

The New Market Loan Fund is a joint venture between Greater New York Development Company, (a Long Island Development Corporation company) our tri-state lending partners and The Community Reinvestment Fund of Minneapolis, Minnesota
 
 

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