Job Development Authority Loan Program

What is the Job Development Authority (JDA)?
• JDA 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).
• In most cases, JDA loans can lend up to 40% of the total project cost of Real Estate or M&E projects.
• Loans can be made for up to 60% for those projects located in Empire Zones or economically distressed areas.

JDA Financing Structure
• The combination of a bank loan and a JDA loan allows up to 90% financing of a project.
• Loans can be from $250,000 - $3,500,000.
• JDA Real Estate Loan is normally a second mortgage loan, subordinate to a first-mortgage loan provided by a bank.
• M&E Loans are secured by a first lien, co-equal with the bank’s lien, on the M&E being financed.
• 50% Bank Loan.
• 40% JDA Loan.
• 10% Borrower Equity

Requirements
• The Borrower must secure a letter of commitment from the bank detailing the banks portion of the project cost.
• Personal guarantees are required from any person owning 20% or more of the Operating Company for whose benefit the JDA Loan is being made.
• The Borrower must provide at least 10% of the project cost as an equity contribution to the project.

What are the costs involved with utilizing JDA?
• $250 Application fee.
• JDA charges a 1% one-time fee to the borrower on the JDA portion of the loan as opposed to higher fees charged by similar programs.
• In Real Estate Transactions, NYS Mortgage Recording Taxes are waived for the JDA portion of the loan amount.

Contact Jim Cunningham at 607-725-1225 for more information

See this and other newsletter articles at http://amt-mep.org/files/8514/1166/6653/2014-10.pdf

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