RDA Success Stories
HSBC Bank USA Refinances Discount Food Retailer, LeRoy, New York
Using a $192,000, 3-year amortizing FHLBNY Rural Development Advance (RDA), member lender HSBC Bank USA provided financing to LeRoy Discount Foods, Inc., the operating entity for Save-A-Lot. Save-A-Lot is one of the nation’s leading extreme-value, limited-assortment grocery chains, delivering savings up to 40% below conventional retail prices. In an effort to reduce costs, the 12,000-square-foot store conveniently displays over 2,000 items on pallets so customers can make their selections and do their own bagging. The owners of LeRoy Discount Foods, Inc., Joseph A. Roberts and Jeffrey Roberts, took advantage of the low-interest-rate environment and refinanced the existing debt on their facility. The new financing will sustain the economic viability of their business.
RDA funds support economic and community development projects located in local government entities with a population of less than 25,000 that benefit households with incomes at 115% or less of the area median income. Long-term funding is available with any CLP advance, allowing you to match-fund the terms and structure of your end loan, locking in a known spread for the life of the loan to mitigate interest rate risk. RDA funds may be used for the financing of commercial, small business, manufacturing, social service, and public facility projects and activities, as well as the construction and rehabilitation of public or private infrastructure, including roads, utilities, and sewers. For more information about the RDA program or to see if the project you have in mind qualifies, contact us at (212) 441-6850.