Program Purpose

This program helps existing New York State firms obtain reduced-rate financing so they can undertake projects to improve their competitiveness, market access and product development; modernize their equipment and or expand their facilities for productivity growth or to introduce new technologies; to facilitate ownership transition; and to promote job creation retention.
 
It is offered as a public-private partnership that provides businesses with affordable capital based on bank loans at reduced interest rates. These bank loans are subsidized by corresponding "linked" state deposits.

 

Program Highlights

The program provides a two to three percentage points savings on the prevailing interest rate for "Linked Loans," to make borrowing less expensive with a maximum loan amount of $500,000 for four years.

2% interest rate reduction for:

• Manufacturers with 500 or fewer full-time employees in New York State
• Service firms with 100 or fewer full-time employees in New York State that are independently owned and operated and not dominant in their field

 

3% interest rate reduction for:

• Empire Zone certified business with 100 or fewer full-time employees in New York State
• Businesses in highly distressed census tracts with 100 or fewer full-time employees
• Businesses in a Federal Empowerment Zone, or Enterprise or Renewal Community with 100 or fewer full-time employees
• Certified Minority- or Women-Owned Business Enterprises (MWBEs) that need financing to fulfill a New York State or federal procurement contract
• Defense industry manufacturers with at least 25 percent of gross revenue derived from defense contracts subcontracts investing to reduce dependence on the defense industry by diversifying production to non-military markets

 

2011 Legislative Changes

1. The Governor and NYS Legislature recently amended legislation that increases the LDP lifetime maximum per eligible business from $1 million to $2 million!

2. The second change allows borrowers to apply for a four-year renewal/extension on an existing four-year LDP loan, thereby increasing the total term of assistance on certain loans to eight years.

For more information or to obtain a renewal form, please call Dolores O’Connor at 518-292-5261.

 

Program Limits

• An eligible business can have up to three LDP loans outstanding, totaling $1 million.
• Each deposit cannot exceed $500,000; there is no mimimum deposit.
• Total lifetime assistance (including renewals and prior deposits) cannot exceed the newly legislated lifetime maximum of $2 million.

 

Not Eligible

• Personal and professional service businesses not located in a Highly Distressed Area, Empire Zone, Federal Empowerment Zone, or Enterprise or Renewal Community
• Start-up businesses
• Retail businesses not located in a Highly Distressed Area, Empire Zone, Federal Empowerment Zone, or Enterprise or Renewal Community. 

 

Application Process

Businesses apply at a participating commercial bank, savings bank, savings and loan association, farm credit institution with which it does business or the New York Business Development Corporation.  The lender makes the credit decision and, if the applicant is eligible, sends the application to ESD for approval on behalf of the business.

Linked Deposit Program application forms are available below in both PDF and MS Word formats. The version in Word format is best if you plan to print the form and then fill it in by hand.

The PDF version is a protected file that has "fillable" fields into which you can type using your computer.
To fill the fields, click on or tab to the line and type in your entry; if you click on a yes no box a "checkmark" will appear in the box. To print, click on the PRINT button at the end of the form.

Linked Deposit Program Application - PDF version
Linked Deposit Program Application - Word version

 

Contact Information
For more information on New York State's Linked Deposit program, contact the LDP office via email or call us at (518) 292-5261.

 

Additional Resources
List of Participating Lenders
Linked Deposit 2011 Annual Report
Linked Deposit 2010 Annual Report
Linked Deposit 2009 Annual Report
Linked Deposit Quick Sheet
2011 Legislative Changes to LDP
Frequently Asked Questions
Press Release: ESD Announces Enhancements to Linked Deposit Program