Member lender HSBC Bank USA took advantage of FHLBNY Urban Development Advance (UDA) funding to provide a $170,000 mortgage loan to Guildcraft, Inc. for the purchase of their previously leased 6,000-square-foot facility. Guildcraft, Inc. serves their community as a distributor, wholesaler, and retailer of art and craft supplies. The 15-year mortgage enabled the family-owned company to stabilize its expenses, giving them greater control over their economic future. Four new positions were created from the expansion to complement the previous five full-time employees and one part-time employee.
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.
