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South Broadway BID has embarked on multiple programs in order to enhance the South Broadway Shopping District.
Below is a selection of our on-going programs in the district.
Section 108 Loan Program
The Office of Economic Development administers this program, funded by the United States Department of Housing and Urban Development, and provides loans in amounts beginning at $100,000 to Yonkers businesses seeking funds for expansion and to businesses desiring to relocate to Yonkers. The loans can be utilized for a variety of purposes including the acquisition of commercial property, construction or renovation/rehabilitation of commercial buildings, relocation expenses, the purchase of machinery and equipment or working capital requirements. The program also can be used in conjunction with other financing options on larger projects where a financing gap exists. Loan terms and repayment schedules are flexible and can be customized to meet the specific needs of the borrower and the scope of the project. The loans are typically secured by liens on the assets financed and personal guarantees from the owners are required.
A primary goal of this program is to spur private investment in the city and create additional employment opportunities. Accordingly, an equity contribution of at least 10% of the project cost is required along with a commitment on the part of the business to create a specified number of new jobs depending on the amount of the loan.
Commercial Loan Program
The commercial loan program provides low-cost capital to existing Yonkers businesses with more modest financial needs. Loans in amounts up to $50,000 are available to finance the costs of leasehold improvements, the acquisition of additional machinery and equipment, the purchase of additional inventory and other working capital requirements. Terms of up to seven years are available depending on the purpose of the loan and the interest rate is fixed at the prime rate on the day of closing. The loans are secured by liens on the company’s assets and are guaranteed personally by the owners of the business. Outside collateral may be required.
This program is intended to provide assistance to successful businesses seeking to grow and expand and it is expected that these companies will create additional jobs and employment opportunities for Yonkers residents. In some cases, we will consider loans to start up enterprises – defined as businesses in operation for less than two full years – if they are able to demonstrate that they have a strong, experienced management team and a fully developed, realistic business plan in place.
Micro & Small Business Loan Programs
The City of Yonkers has partnered with Community Capital Resources, a non-profit organization providing financial, technical and educational resources and economic development to the Hudson Valley, with resources provided in part by Empire State Development, the economic development agency of New York State to present two loan programs. The purpose of which is to provide small businesses, located within the City of Yonkers, with loans to launch or grow their business. The COY matched ESD funding of $125K for the Micro loan with funds drawn from our CDBG-R program and with funding of $500K for the Small Business loans with funds drawn from our CDBG program. The program runs from January 1, 2011 – January 1, 2013; the $1.25 million available funds must be disbursed within that timeframe. Based on its performance, the program may be extended beyond that period. CCR does the underwriting and maintenance of files.
For more information contact Sunday Tinelle at the City of Yonkers Office of Community Development – 914 377-6619 or email@example.com.
Yonkers Local Assistance Corp. (YLAC) Loan Program
The YLAC Loan Program is designed to provide capital for expansion to small and emerging Yonkers’ businesses which otherwise would not have access to financial assistance. Loans are made to businesses established for two years or more although funding can, on occasion, be made available to newer businesses if they have a strong business plan and management team in place. Loan proceeds can be utilized for:
Loans can range from $1,000 to $10,000 depending on the purpose and the borrower’s ability to repay. Loans typically are repaid over a 2 to 3 year period depending on the use of proceeds with a maximum term not to exceed 5 years. Interest will be charged at the prime rate with a 3% floor but the loan committee reserves the right to vary that rate depending on the project and the level of perceived risk. Personal guarantees will be required from all parties having an ownership interest in the borrower. Collateral for the loans will consist of a security interest in all assets acquired with the proceeds of the loan, along with blanket liens on all other business assets. In some cases outside collateral may also be required.
As with the other loan programs, it is expected that at least one job will be created or retained as a result of the loan and at least 10% of the project cost will be in the form of owner’s equity.
For additional information on these programs, please contact: (914) 377-6797
The Office of Economic Development also has developed a wide range of partnerships with alternative lenders that we can leverage to facilitate transactions beyond the scope of our programs or that are best suited to other programs. We act as an intermediary with:
The Statewide Zone Capital Credit Program (SZCC)
A loan fund dedicated to financing certified companies located in a New York State Empire Zone such as the Yonkers Empire Zone. Loan amounts ranging from $30,000 to $300,000 can be accommodated. These loans are made in conjunction with other lenders and the financing provided by SZCC can not exceed 50% of the total financing requested. A 10% equity contribution is also required. Interest rates can be fixed or floating and loan maturities can range between 3 and 15 years depending on the purpose of the loan and the nature of the collateral. For additional information, please contact: (914) 377-6797
The New York Business Development Corporation (NYBDC)
Created by the New York State Legislature in 1955, NYBDC is owned and funded by 160 New York State commercial banks and thrift institutions. Its mandate is to promote employment and economic development in the state through its lending activities directed at small and medium size businesses. Among its programs are:
For further information on any of these financing tools, please contact: (914) 377-6797 or visit the NYBDC website.