Member lender Provident Bank has partnered with The Progress Development Corporation, a local non-profit organization, to develop the new Family Business Loan Program. Under the program, small and family-owned businesses will have access to low-interest loans to open their doors in the central business districts of Newburgh, Port Jervis, and Middletown.
The FHLBNY provided $25 million in Urban Development Advances (UDA) to support the small business initiative. Progress Development Corporation, with backing from the Small Business Loan Administration, is pledging an additional $25 million in low-interest loans to attract new business, manufacturers, technology firms, and retailers to the key urban centers of Orange County, New York State’s twelfth most populous and fastest growing county.
“By providing attractive new loan options, these cities instantly become more desirable locations to create or expand a business,” said Robert Sansky, an Executive Vice President of Provident Bank. In addition, the program is estimated to generate 600 new jobs. For each particular project, Provident plans to provide 50% of the financing, while Progress Development Corporation funds 40%, and the borrower will kick in the remaining 10%.
UDA funds support economic and community development projects located in local government entities with a population greater than 25,000 that benefit households with incomes at or below 100% 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. UDA 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 UDA program or to see if the project you have in mind qualifies, contact us at (212) 441-6850.
