The Capital Project Loan Fund (CPLF) will provide $106 million in State Small Business Credit Initiative (SSBCI) funding to provide 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 or constructing new buildings ("real estate" projects) or for purchasing machinery and equipment ("M&E" projects).

Program Highlights

• Most CPLF loans can be for up to 40% of the total project cost of real estate projects or M&E projects.
• Loans may be up to 60% for projects located in Empire Zones or economically distressed areas.
• A combined bank loan and CPLF loan allows up to 90% financing of a project.
• Typical financing structure: 50% bank loan 40% CLF loan 10% borrower equity
• A CPLF real estate loan is normally a second mortgage loan, subordinate to a first mortgage loan from a bank; M&E loans are secured by a first lien, co-equal with the bank's lien, on the M&E being financed.

Eligible CPLF loan uses:

Real Estate

• Cost of acquiring an existing building and/or renovations to the existing building
• Purchase of land and/or construction of a new building on that property
• Soft costs normally associated with a real estate transaction.

Machinery & Equipment

• Acquisition costs and eligible soft costs only. Note that M&E being purchased with a CPLF loan must be fixed to the building.
• Installation costs are not eligible under CPLF M&E loans.

Facilities to be used for manufacturing, distribution, warehousing and certain service businesses are eligible for CPLF loans.

CPLF Loans may not be used for:

• Retail facilities, which customers must personally visit in order to obtain the goods or services being sold
• Hotel or residential facilities
• Motor vehicles
• Working capital loans

Other Requirements:

• The borrower must secure a letter of commitment from the bank providing the 50% financing portion of the project cost.
• The borrower must provide at least 10% of the project cost as an equity contribution to the project.
• Personal guarantees are required from any person owning 20% or more of the operating company for whose benefit the CLF loan is being made.

Contact Information:

Please contact Dana Ochia, Director, Small Business Liaison and Outreach at (212) 803-3149 or [email protected] to start the application process.

Additional Resources to Get Loan Ready

SSBCI Technical Assistance (TA) provides legal, accounting, and financial advisory services to help small businesses strengthen loan readiness and access capital, at no cost to the business.

What we can help with:

• Legal: business formation and governance; required registrations and licenses; contracts; investor documents; ESOP-related transfers; procurement and surety-bond support; contractor-financing and bonding needs.
• Accounting: audits and financial statements; digitizing records; training on accounting practices/software; WIP/AR/AP schedules; transitioning from cash to accrual to meet lender or surety requests.
• Financial advisory: banking relationships; applications for government small-business programs; identifying credit/capital/grants; financial-management guidance; presentations, models, and business plans; surety-bond basics and contractor-financing support.

Where to get help

TA providers serve regions statewide, including:

Adirondack Economic Development Corporation (North Country)

Eleven3seven5 (NYC, Mid-Hudson, Capital Region)

Renaissance Economic Development Corporation (NYC, Long Island, Mid-Hudson)

Pursuit Lending (Statewide)