Job Development Authority (JDA) Direct Loan Program


Program Purpose

This 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 or constructing new buildings ("real estate" projects) or for purchasing machinery and equipment ("M&E" projects).  

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Program Highlights

  • Most JDA 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 JDA loan allows up to 90% financing of a project.
  • Typical financing structure: 
        50% bank loan
        40% JDA loan
        10% borrower equity
  • A JDA 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 JDA 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 JDA loan must be fixed to the building.
      • Installation costs are not eligible under JDA M&E loans.


  • Facilities to be used for manufacturing, distribution, warehousing and certain service businesses are eligible for JDA loans.
  • Loans for retail facilities, which customers must personally visit in order to obtain the goods or services being sold, are not eligible for JDA loans, nor are loans for hotel or residential facilities.
  • JDA does not make loans for motor vehicles, nor does JDA make working capital loans.


  • 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 JDA loan is being made.

How to Apply

  • Requests for JDA loans are made through the ESD Regional Offices located throughout the state.
  • All JDA loans must be approved by the members of the JDA board of directors and subsequent approval by the Public Authorities Control Board.
  • The approval of the JDA board must take place before the commencement of the project.

Contact Information
Contact your ESD Regional Office.