Linked Deposit Program

Objective

The Linked Deposit Program (LDP) helps existing New York State firms obtain reduced-rate financing so they can: undertake projects to improve their competitiveness; improve market access and product development; modernize equipment or expand their facility; introduce new technologies facilitate ownership transition and; promote job creation and retention.

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Overview

Overview

The program provides up to a two to three percentage point savings on the prevailing interest rate for "Linked Loans," to make borrowing less expensive. Eligible businesses can obtain loans from commercial banks, savings banks, savings and loan associations, farm credit institutions and the New York Business Development Corporation.

Program Limits

  • An eligible business can have an unlimited number of LDP loans outstanding, totaling $2 million.
  • The single deposit limit has been increased to $2 million; there is no minimum deposit.
  • Total lifetime assistance (including renewals and prior deposits) cannot exceed the legislated lifetime maximum of $2 million.

Eligibility

Eligible Borrowers:

  • Manufacturing Firms – with 500 or fewer full-time NYS-based employees
  • Service Businesses - independently owned and operated and not dominant in their field, with 100 or fewer full-time NYS-based employees

Not Eligible:

  • Businesses that provide a personal service (those that sell a service rendered personally by an individual for another individual (e.g., day cares, funeral homes)
  • Professional services (e.g., health, legal, accounting, engineering, educational), or retail services (e.g., restaurants, entertainment, grocery stores, etc.)
  • Pre-Start-up businesses (those that have no sales and/or employment) and companies that are headquartered outside of NYS

UNLESS the business employs 100 or fewer in NYS and is located in:

  • A New York State Empire Zone - An Empire Zone Certified Business with 100 or fewer full-time, NYS-based employees
  • A highly distressed census tract with 100 or fewer full-time NYS-based employees 

How to Apply

Apply at a participating commercial bank, savings bank, savings and loan association, or farm credit institution with which you do 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. The Linked Deposit Program application is available below.