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Resources for Manufacturers
Business Loan and Grant Sources
U.S. Small Business Administration
The Small Business Administration (SBA) 504 Loan Program provides long-term, fixed-rate financing to acquire real estate, and/or machinery and equipment for expansion of business or modernization of facilities. It is a federal program that will provide long-term, fixed-rate financing. Your company must have been in business for at least 2 years.
Terms and Benefits:
1. The program will finance 40% of a project, for projects up to $4M.
2. The term of the loan is 10 to 20 years, at rates slightly higher than prime.
3. Business owners are required to provide only 10% of their own equity
4. Mortgage recording tax waiver on the CDC portion of the loan.
SBA 504 Loan Structure
Senior Lien Note From Commercial Bank 50%
Junior Lien Note From CDC, backed 100% by SBA 40%
Business Owner Equity 10%
SBA 7(a) Loans
The SBA 7(a) loan program is a general loan program geared towards start ups and smaller businesses, with a maximum loan amount of $2M. These loans can be used for purchase or construction of real estate, machinery, equipment, or inventory, as well as working capital. SBA can guaranty up to 85 percent of loans of $150,000 or less, and up to 75 percent of loans above $150,000. The term of the loan is up to 25 years (for fixed assets), though it is generally used for working capital (10 year maturity). SBA offers micro loans of under $35,000 through a number of CBO intermediaries indicated in the financing section.
Interest rates are determined by the purpose and maturity of the loan. Rates are fixed or variable and range from Prime Plus 2.25% to Prime Plus 4.75% dependent on the loan type.
How to apply for an SBA loan:
SBA loans are available through participating banks and intermediary organizations.
Contact a bank that has made SBA loans in the past, and is familiar with the program.
New York Business Development Corporation, Chet Sadowski at 212-785-5702.
Boricua College, Small Business Development Center, 718-963-4112.
Madeline Marquez, Bronx Initiative Corporation, 718-590-3980.
New York State loan guarantees
New York State’s Linked Deposit Program can be helpful when a business approaches its bank for financing. Among participating banks, the program can save a few percentage points on the interest rate for long term fixed-rate financing, for a period of four years. Manufacturing firms with less than 500 employees are eligible for a 2% interest rate subsidy for a variety of projects; manufacturing firms certified in Empire Zones or located in highly distressed areas may qualify for a 3% subsidy.
Please be aware that banks are not allowed to charge the borrower any additional fees for applying or participating in the program. The loan amount cannot exceed $500,000, and over a lifetime the maximum loan amount is $1,000,000. If you are interested in more information, please contact Joanne FitzGibbon or Dolores O’Conner at Empire State Development Corporation, 518-292-5261.
New York City loan guarantees
New York City Capital Access (NYCCA “Cap Access”) is a public-private lending program that enables banks to make loans to small and medium-sized businesses that fall below the criteria for conventional bank loans. Term loans and lines of credit, ranging from $5,000 to $250,000, may be used for working capital, real estate acquisitions, machinery and equipment, and physical improvements to real estate.
The participating lenders are Citibank, Accion USA Inc., Seedco Financial Services, Brooklyn Cooperative Federal Credit Union, and Nonprofit Finance Fund.
Microcredit
ACCION USA Small Business Loans are a way to take your established business to the next level. ACCION USA makes small business loans between $500 and $50,000, with loan terms up to 60 months. Loans are disbursed in ten business days upon receipt of your completed application and supporting documents. Businesses can apply for loans to be used purchasing inventory, equipment, business marketing, or other expenses associated with building a business.
ACCION USA small business loans come with a competitive fixed annual interest rate between 8 and 15 percent. Closing costs of 3 to 5 percent will be financed into the loan amount and include application and servicing fees.
The New Markets Revolving Loan Fund was created by the NYC Economic Development Corporation and is administered by two providers: SEEDCO and Project Enterprise. The fund will disperse approximately $2.4 million in small and
For women-owned businesses, Count Me In and the Women’s Venture Fund provide early-stage capital of up to 15,000. For more information about Count Me In visit: http://www.count-me-in.org/loanapps/index.html or call 212-245-1245.
More information about Women’s Venture Fund at 212-563-0499 or http://www.womensventurefund.org/Loans.htm
Start-ups can access funding from $15,000 to up to $350,000 through organizations including CAMBA, NYCFNAC (in partnership with member credit unions) Renaissance, ACCION New York, BOC Capital Corporation, NYANA and various credit unions. Eligibility may depend on location or membership. They normally offer competitive rates.
Some of the local economic development groups including Greater Jamaica Development Corp, Bronx Overall EDC, SOBRO and the Upper Manhattan Empowerment Zone offer low-interest financing through revolving loan funds and other region-specific programs.
Trade Adjustment Grants
The Trade Adjustment Assistance Program is a federal grant program designed to help manufacturers affected by trade compete more effectively. Administered in New York State by the New York State Trade Adjustment Assistance Center, this program can underwrite up to 75 percent of the costs of strategic assistance in the areas of marketing, manufacturing, engineering, management information systems, and finance. For more information contact Gary Youmans, 212-921-1662.
Business Relocation and Expansion Assistance
Mayor's Office of Industrial and Manufacturing Businesses
Industrial Business Zone Relocation Grants
The IBZ Relocation Grant is part of a recently established program that can help cover the costs of relocation, if your company moves into a newly designated Industrial Business Zone (IBZ). To qualify, your company must have signed a 5 yr + lease/contract after July 1st, 2005 and relocate or move within an IBZ. The grant is reimbursable, providing the lesser of $1,000 per full-time employee or your eligible moving costs. You receive the grant as a credit towards your NYC business taxes or as a cash reimbursement if you have no City tax liability. You cannot receive the IBZ grant if you also receive REAP. This program will be administered through the NYC Department of Finance, and business can claim the credit starting in 2007.
For more information and to determine if you may qualify, contact Nino DePaola at the Mayor’s Office of Industrial and Manufacturing Businesses, 212-513-6466.
Greenpoint Williamsburg Industrial Fund
Manufacturing & industrial businesses who rent space in the R or MX Zones in Greenpoint/Williamsburg may be eligible for a grant of up to $50,000 to cover costs of relocating elsewhere in NYC. Preference is given to those seeking to re-locate within Community Board #1. All or part of the move-out site must be located within areas rezoned to residential or mixed-use districts under the GPW Rezoning, and firms must occupy the move-in site for a minimum of 3 years immediately following relocation.
Contact: Nino DePaola at the Mayor’s Office of Industrial and Manufacturing Businesses, 212-513-6466.
Download an application.
New York City Department of Finance
Relocation and Employment Assistance Program (REAP)
Manufacturing firms relocating all or part of their business from outside of New York City or Manhattan south of 96th Street to other New York City locations above 96th Street or in the outer boroughs can apply for the Relocation and Employment Assistance Program (REAP). REAP provides a 12-year credit of $3,000 per relocated employee against the NYC Corporate Tax, or the Unincorporated Business Tax. ( This amount is reduced to $1,000 per employee if the move-in site is not located in an M1, M2, M3, C4, C5 or C6 zone.) This credit is cash refundable for 5 years for companies with no tax liability. The move-in property must be meet one of the following requirements:
- ICAP (As a result of an expenditure of at least 25% of the assessed value. The 25% expenditure threshold can be met by the owner, the tenant, or a combination of both.)
- leased from the IDA, Port Authority or New York State
- the tenant improves the property by spending $25 per sq ft on capital improvements or 50% of assessed value. Apply for REAP after your ICIP or IDA is completed.
Businesses relocating from outside to Lower Manhattan (South of Houston Street) are also eligible for REAP benefits, provided they have been in business for at least two years and meet the other requirements for the program.
Contact: Mona Sidarous or Howard Heskel, 212-232-1650, New York City Department of Finance.
Commercial Expansion Program Industrial Rent Abatement
CEP is a package of tax benefits designed to help businesses relocate and expand in targeted expansion areas of NYC. If your company relocates to a M1, M2, M3, C4, C5 or C6 zoned area anywhere in the outer boroughs or Upper Manhattan, you may be eligible for a rent credit. You and your landlord can apply for abatement on the real estate taxes on the building. The building must have an aggregate floor area of 25,000 and improvements are required. The landlord is then required to pass the savings on to the tenant by reducing the rent. This means that you can cut up to $2.50 per square foot from your rent for a period of 3 – 10 years, depending on your lease term. In order to qualify, you must move into a building and you and/or your landlord must make improvements of at least $2.50 per square foot to the space.
Contact Brenda Russ at the New York City Department of Finance.
Download an application.
Industrial and Commercial Abatement Program
ICAP, formerly known as ICIP, provides abatements of real property taxes for varying periods up to 25 years for eligible industrial and commercial buildings that are built, modernized, rehabilitated, expanded, or otherwise physically improved. Firms that make improvements or renovations to their buildings equal to 30% of the assessed value of that property are eligible for abatement on the increase in property taxes due to those improvements. ICAP has different benefit schedules depending on location, type of work (renovation, new construction), and retail usage of the property. For most non-retail businesses, there is a 16-year full abatement followed by a 9-year phase-out of benefits (25 years total. For businesses with more than 10% retail usage there is a 12-year full abatement followed by a 4-year phase out (16 years total).
Companies must apply for ICAP before applying for building permits and before any renovations are made to the property.
Contact Patrick Nwabunie at the New York City Department of Finance, 212-361-7173.
Download an application.
Employee Hiring and Training
New York State Department of Labor
On-the-Job Training Program
The DOL will pay 50 percent of the salaries of full-time employees that are participating in on-the-job training for a period of 20 to 60 days. This program is administered by the Jamaica Chamber of Commerce and is available to companies in all 5 boroughs. The program director must interview the job candidates and review the training process. The employer must retain these employees for at least 30 days after the completion of the training program and the employees must be paid at least $6.00 per hour (NY State minimum wage). For more information call Tom Mood at (718) 657-4800.
Advance NY
These occupational training grants are available to any New York State business up to a maximum of $50,000. There are no sector or wage requirements but outcomes must show transferable skills and a wage increase in the trainee/employee. There is no contribution for firms with less than 100 workers. Applications are accepted on a rolling basis and can be submitted online at, http://www.workforcenewyork.org/advanceny-m/. Candidates are encouraged to contact NYC Business Solutions for information (Candice Reel, 212-618-6765) The NYSDOL-BUSINYS program has been suspended but is still accepting applications.
New York City Human Resources Administration
Business Link is a no-fee employment service offered by the New York City Human Resources Administration. The service offers pre-screened candidates for employers based on qualifications identified by the employer. In addition, Business Link offers two Welfare to Work programs including, Grant Diversion and Job Opportunities Program (JOP).
Under the Grant Diversion Program a wage subsidy is provided to employers to offset the cost of hiring new employees for up to six months. Employers must pay at least minimum wage in accordance with state and federal law. For more information, please contact Renee Rosenberg at (212) 643-2881 ext. 126.
The Job Opportunities Program provides a 100% wage and fringe benefit subsidy to employers who hire individuals’ full time (35 hours/week) who have been receiving Public Assistance for 18 months or longer. Enrollment of a new employee in JOP is available for up to six months. For additional information contact, Judith Marcus at (212) 643-2881 ext. 215.
New York City Department of Small Business Services
Through NYC Business Solutions, training grants are available to targeted business sectors including industry/manufacturing. This program offers businesses the chance to create and retain jobs, increase wages, build skills and help workers advance in their careers. Grant amounts for this round have increased to $400,000. Companies with less than 100 employees can use funding to cover up to 70% of costs. Eligible projects include occupational training and improving work readiness skills, such as, but not limited to, adult literacy and numeracy, ESL and workplace behavior skills. To apply, employers must submit a 5-page application complete with narrative and training curriculum as well as a 10-minute pre-application. For more information please visit www.nyc.gov/training or contact Michael Silver at 212-618-8950.
New York Association for New Americans
NYANA will reimburse employers for 80% of wages paid to newly hired employees up to a maximum of $12 an hour for a period of two months. If employees are retained for an additional 90 calendar days, employers will receive a 20% bonus check. To qualify, employers must hire a NYS resident that has a child/children below 18 years of age and is a low-income earner based on NYANA guidelines. NYANA can also refer pre-screened and qualified applicants. This wage subsidy program is administered by NYANA and funded by the Department of Labor. For more information or to apply contact Nestor Tebio at 718-651-4983.
