What is The New York State Linked Deposit Program (LINC)? 
LINC helps existing New York State firms obtain reduced-rate financing so they can undertake investments to:

• Improve their competitiveness
• Expand their markets
• Develop new products
• Introduce new technologies
• Facilitate ownership transition
• Modernize their equipment, increase their capacity or capabilities
• Expand their facilities, purchase real estate or make building renovations
   

How can Linked Deposit help you and your business clients?

• By utilizing LINC, a lender can offer lower interest rates
• Lenders can use LINC as a marketing tool to attract new customers and retain existing clients
• It can allow a lender to move forward with the loan, where without LINC the borrower may not have been credit worthy
• It may also allow a borrower to qualify for more funding, resulting in a larger investment with more economic benefits
• It can provide the borrower with substantial savings and ease cash flow, allowing those monies to be spent elsewhere

The Linked Deposit Program (LINC) helps existing New York State firms obtain reduced-rate financing so they can undertake investments 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 LINC loans outstanding, totaling $6 million.
• The single deposit limit has been increased to $4 million; there is no minimum deposit.
• Total lifetime assistance (including renewals and prior deposits) cannot exceed the legislated lifetime maximum of $6 million.

New York State places a deposit for the same amount as the loan at the bank and earns less interest on the deposit, allowing the lender to transfer the interest rate savings on to the borrower. At the end of the four year term of Linked Deposit assistance, the bank returns the deposit to New York State.

Business and Project Eligibility Requirements
 

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:

• Start-up businesses (those that have no sales and/or employment).
• Companies that are headquartered outside of New York State.

Also 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),
• Retail services (e.g., restaurants, entertainment, grocery stores, etc.)

** Unless the business employs 100 or fewer in New York State and is located in a highly distressed census tract.

How to Apply

• Apply at a Participating Lender (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 (LINC) application is available here: LDP Application

Lender Eligibility
Any bank that provides business loans and is located in New York State can be considered to participate in the Linked Deposit Program (LINC). The bank must be in good financial standing and complete the Linked Deposit Program Agreement, which can be provided by the Linked Deposit Program Manager. The lender will also need to complete Undertaking Agreements with the State Comptroller’s Office and the NYS Department of Tax and Finance in order to accept state deposits.

Application and Deposit Process For Lenders

• Lenders submit LINC applications on behalf of their business clients and applications must be submitted before any funding has been disbursed or any construction has started. Once the application has been submitted and the lender receives the approval from the Linked Deposit Program Manager, the business may begin moving forward with the investment. Empire State Development is not involved in the underwriting process and completes the review of the application within five days.
• When the loan has closed or when all the loan funds have been disbursed or when construction has been completed, the lender notifies the Linked Deposit Program Manager who then provides documents to the lender that are needed to proceed with the funding transfer. The lender contacts either the State Comptroller’s Office or the NYS Department of Tax and Finance to fund the deposit and all deposits must be fully collateralized per the provisions of the New York State Finance Law.

Please contact the Linked Deposit Program Manager for additional enrollment information: [email protected] or 518-292-5261

Frequently Asked Questions

Linked Deposit Program Regulations