Central Business District (CDB) Loan Program

The Central Business District (CBD) Loan Program is a key component in promoting owner occupied commercial buildings in areas that have traditionally been recognized as our business districts in the Town of Union, Village of Endicott and Village of Johnson City.

Eligible Areas: Central Business Districts of the Town of Union, includes the Villages of Endicott and Johnson City

Application Fee:None

Interest Rate (as of 11/15/2012): 2%
The three percent interest rate is fixed for term of the loan

Amount of Financing:

Up to 40% of eligible project Costs, generally not to exceed $50,000. Minimum loan is $10,000.

Eligible Borrower:

Any legal borrowing entity. No borrower that has defaulted on a previous Local Development Corporation loan will be eligible to apply. Additionally, no borrower may have more than one (1) open loan with the LDC at any time.

Eligible Use of Proceeds:

Fixed asset purchase: Acquisition of Land and Buildings for use as an owner occupied building of which 51% must be used for commercial purposes.

Ineligible Use of Proceeds:

Supplies; Accounts Receivable; Wages; Advertising; Speculative product development; Refinancing; Incorporation fees; Loan packaging fees; Application fees; Construction Costs; Machinery and Equipment; Trucks; Automobiles and Inventory; Leasehold Improvements; Acquisition of existing business; Residential Housing.

Ineligible Users:

Lending institutions; Recreation facilities not open to the public; Investment real estate not tied to specific job creation/retention activity; Gambling facilities; Bars; Taverns; Gasoline stations; Service/repair shops and body repair shops; Towing and related businesses; New, used and rental cars sales/leasing businesses; Beauty and barber shops; Nursing homes; Family day care homes; Day care centers, if not licensed by the state.

Amount of Participation:

At least 75% of the project cost is funded privately, either tough a private lender, another public lender and owner equity (a minimum of 10% owners cash equity is required).

Term of the loan:

Based on the life of the asset not to exceed a term of ten (10) years (when renovation are involved an applicant may request interest only payment during the first six (6) months of the term).


First or subordinate mortgage to a bank. Assignment of leases subordinate to a bank


Joint and personal guarantees from company owners and spouses if involved in the operation of the business. Corporate guarantees as appropriate.

Federal Labor Standards Provision:

All Local Development Corporation funding programs are subject to the Federal Labor Standards Provisions and the Davis Bacon Act where construction and/or renovation apply.

Other Criteria:

  • Demonstrated need for financing
  • Demonstrated ability to repay debt
  • Demonstrated Commitment by the Owner (s)
  • Firm project and project cost

Job Creation and Retention:

Funding is based on the number of jobs to be created within two (2) or three (3) years of the loan approval. The majority of the jobs to be created or retained must be filled by people from low and moderate-income households, or made available to people from low and moderate-income households.

Job Cost Ratio:

1 full-time job equivalent: $30,000

Business Start-Ups

Start-up businesses may apply for funding under the Central Business District Loan Program.

Start-up businesses will have additional requirements for
loan approval as follows:

  • The Entrepreneur must incur risk i.e., the entrepreneur must be investing a minimum of 10% personal capital into his/her enterprise. Minimum equity is 10%.
  • The Entrepreneur must demonstrate adequate management capability including the ability to manage both human and financial resources.
  • The Entrepreneur must demonstrate intimate knowledge of the industry in which he/she will operate a business. Such knowledge must include knowledge of billing practices, competition, legal issues, marketing and advertising, etc. Start-up businesses may obtain assistance with their business plan and other issues through the Small Business Development Center at Binghamton University or similar private and public agencies.