Empire State Development (ESD) today announced that $10.1 million in loans were closed by the Job Development Authority (JDA) Direct Loan Program in 2018, the largest number of loans closed by the program in over 20 years. The Program provides direct loans for the growth of manufacturing and other eligible businesses within New York State by assisting in financing a portion of the cost of acquiring and renovating existing buildings, constructing new buildings or purchasing machinery and equipment, known as M&E.
Empire State Development President, CEO and Commissioner Howard Zemsky said, “Job Development Authority loans exemplify what Empire State Development is all about, providing support to businesses in a wide range of industries throughout the state, driving economic growth and creating good jobs.”
Most JDA loans can cover up to 40 percent of the total cost of real estate projects or M&E projects, although loans may cover up to 60 percent of the cost for projects located in Empire Zones or economically distressed areas. A combination of loans from JDA and a bank can finance up to 90 percent of a project. JDA loans can be used for the cost of acquiring a building and renovating it, the purchase of land and construction on that land, and soft costs associated with real estate transactions. M&E loans can cover acquisition costs and eligible soft costs.
Business owners interested in applying for JDA loans must secure a letter of commitment from a bank that finances 50 percent of the project cost, and secure 10 percent of the project cost themselves. Any person who owns 20 percent or more of the company receiving the loan must also provide a personal guarantee. Facilities to be used for manufacturing, distribution, warehousing and certain service businesses are eligible for JDA loans. All JDA loans must be approved by the members of the JDA Board of Directors and subsequently by the Public Authorities Control Board before work begins.
About Empire State Development
Empire State Development (ESD) is New York’s chief economic development agency (www.esd.ny.gov). The mission of ESD is to promote a vigorous and growing economy, encourage the creation of new job and economic opportunities, increase revenues to the State and its municipalities, and achieve stable and diversified local economies. Through the use of loans, grants, tax credits and other forms of financial assistance, ESD strives to enhance private business investment and growth to spur job creation and support prosperous communities across New York State. ESD is also the primary administrative agency overseeing Governor Cuomo’s Regional Economic Development Councils and the marketing of “I LOVE NEW YORK,” the State’s iconic tourism brand. For more information on Regional Councils and Empire State Development, visit www.regionalcouncils.ny.gov and www.esd.ny.gov.