Small Business Funding Options
There are many ways to meet your small business financing needs. There is traditional funding through a local bank or credit union that does commercial lending, or you could search for some private investors. There are also many economic development financing options you can consider.
All new businesses should plan on writing a business plan prior to requesting funding from any source, whether it is a bank, investor, or an economic development agency. Most existing businesses should plan on updating their business plan. If a business has a significant and verifiable history, the business plan requirement may be waved in lieu of a project description and completed loan application. Historical financial statements, personal tax returns, personal financial statements, and credit reports will all be a part of the loan application package.
The goals of economic development agencies are to increase employment opportunities in a given area, and to improve the quality of life. Therefore, each project must demonstrate the ability to create new jobs, retain existing jobs, or make a significant contribution to the community that will improve the overall economic condition of the area or have some other community development benefit.
If you need assistance development your business plan or project, you may contact our office for guidance, or use the Additional Resources portion of our website to contact the Small Business Development Center or SCORE.
Business Assistance Loan Funds (BALF)
The Development Chenango Corporation operates the Business Assistance Loan Fund to provide loans of up to $100,000 to local businesses for construction of a new building, renovations, additions, purchases of capital equipment, product development, working capital and other legitimate purposes that are consistent with the Economic Development Mission of DCC.
Projects are expected to create or retain jobs or have other significant impact on the County’s economic environment. The loans are made at a fixed rate, and the term varies dependent upon the use of the funds. A general benchmark of loan funds per job is $10,000 per each Full Time Equivalent (FTE) job created and/or retained.
Revolving Loan Fund (RLF)
Chenango County administers a Revolving Loan Fund Program which provides manufacturing firms (SIC codes 20-39) with up to $75,000 to assist in the funding of their project. Agricultural product manufacturing projects may apply for this revolving loan fund as well.
The Chenango County Revolving Loan Fund is available to both new businesses and existing businesses. The goal of this funding program is also new job creation and / or retention of existing jobs.
City of Norwich Business Development Loan Program
The purpose of the program is to provide local business with the ability to create new employment opportunities through the expansion of existing or the creation of new businesses in the Greater Norwich Area. Other goals include retention of employment, and to bring essential services or businesses lacking in the neighborhood or community, and to leverage the greatest level of private funds possible. The proceeds may be used to purchase capital equipment, acquisition and/or new construction, renovations and/or additions to facilities, and inventory.
City of Norwich Commercial Development 50/50 Loan Program
Retail and commercial businesses in the downtown vicinity are eligible for loans through this program. The following is a partial list of eligible uses: Inventory enhancement; equipment & interior display units and fixtures; property acquisition; display lighting; facade improvements; sidewalk replacement; interior design & remodeling; working capital and signage.
Village of Sherburne
The Village of Sherburne has a revolving loan fund for projects in the Sherburne area. The amount that may be requested is dependent upon the project investment total, as well as the project job creation and/or retention of the project.
The contact person for this program is Sherburne Mayor, William Acee, and he may be reached at 674-6090.
SBA 504 & 7(a)
These loan programs are through the Small Business Administration. Businesses may apply for SBA loan programs only through a conventional bank.
The Linked Deposit program is not a loan fund, but an interest rate reduction program for businesses located within an Empire Zone. It is intended to be utilized with conventional commercial financing through a bank.
The lender may opt to work with this program in order to offer a reduced interest rate on small business financing needs for a period of four years. The interest rate is dropped between 2%-3%, dependent upon whether the business is Empire Zone certified, and what classification the business falls under. This program is only available by talking with the lending officer at your preferred bank.
Office of Community Renewal – CDBG Funding
At times, for larger projects, the Development Chenango staff may recommend that an application be submitted for a Community Development Block Grant. Only a municipality may apply for this funding, and generally we work with the County of Chenango. If the project is located within a specific municipality that has the capacity to apply on its own, that may also be recommended.
If the project is deemed eligible for this funding, Development Chenango will take the lead on the project, walking the client through the necessary steps to complete the pre-application and receive an invitation to apply. If the grant is approved, the funds are then disseminated through Chenango County to Development Chenango. Typically, financial assistance is offered to the company as very low-interest and possibly forgivable loans, and as deferred loans for longer terms. The arrangement is particular to each project, and caters to the needs of the specific company.
Contact Jennifer Tavares at 607-334-5532 to discuss these opportunities.
Statewide Zone Capital Corporation of New York (SZCC)
SZCC is a privately-owned loan fund whose capital is available to promote the expansion and growth of businesses in New York’s participating Empire Zones. Financing will be made available for both existing and new businesses. Operations of SZCC are managed by New York Business Development Corporation. SZCC is intended to complement conventional bank financing by partnering with banks to provide credit to businesses, many of which do not meet the requirements for traditional financing. Loans range from $30,000 to $300,000. Bank or other lender participations are desired.
Southern Tier East Economic Development Revolving Loan Fund (STEED)
Subordinated direct lending to manufacturers or industrial related firms for fixed assets, targeted to small and medium-size businesses throughout eastern Southern Tier of New York State. Eligible businesses may qualify for $15,000 per new job created, up to 40% of the proposed project, or $200,000.
Upstate Regional Blueprint Fund
Empire State Development created a $120 million fund for Upstate New York Economic Development. Funds are allocated in three "Tracks," as follows:
- Business Investment Track (operating businesses)
- Infrastructure Investment Track (place-based investments)
- Downtown Redevelopment Track (place-based investments)
There are three forms of assistance: Subsidized Loans, Convertible Loans, Grants.
More information on this program can be found here.