AM&T: Job Development Authority Loan Program

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.

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.

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.

$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.

Tuesday, March 3, 2015