Member lender HSBC Bank USA used the FHLBNY’s Rural Development Advance (RDA) to provide financing to two small businesses: Parise’s Auto & Towing, Inc., in Batavia, New York and C.W. Cold Storage in Holley, New York. The RDA for Parise’s Auto and Towing was used to refinance a term loan held by HSBC Bank USA to help pay off debt owed for equipment and additional property purchases. For C.W. Cold Storage, a facility that provides refrigeration services for the food processing industry, serving customers such as Motts, Beechnut, and Heinz, an RDA was used to refinance a variable interest-rate mortgage loan, converting it into a low-interest, fixed-rate mortgage loan. The new refinancing will ensure the economic stability of both companies.
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.
