Emerging Enterprise/Emerging Market Entrepreneurial (E³) Loan Program


The Economic Development Department provides financial assistance to start-up and expanding businesses through the Local Development Corporation of the Town of Union. The Emerging Enterprise/Emerging Market Entrepreneurial (E³) Loan Program is one of several loan programs offered by the Local Development Corporation of the Town of Union. Assistance is also available to coordinate government and private sector resources and package business proposals. By networking with local brokers, economic development staff can also assist business contacts in identifying Town of Union sites.

The E³ Program is a key component in promoting the entrepreneurial spirit by encouraging research and development in emerging fields and/or improving upon existing technologies.

Application Fee: None

Application Period: Open

Interest Rate (as of 11/15/12): 0% for year 1; 1% for years 2 and 3; 2% for the balance of the loan term.

There will be a 0% percent interest rate for the first year of the loan and 1% for the start of year two to the end of year three. For the remaining term of the loan the interest rate will be 2%.

The Borrower may also request a deferment/moratorium of principal payments for the first six months of the loan.

Amount of Financing:

Up to 75% of eligible projects, generally not to exceed $50,000. Minimum loan is $10,000.


Any legal borrowing entity. No borrower that has defaulted on a previous Local Development Corporation loan will be eligible to apply.

Eligible Areas:

Town of Union, including the Villages of Endicott and Johnson City.

Eligible Use of Proceeds:

Fixed assets with a useful life of 5 years or more to include: Land; Buildings; * Construction; **Leasehold improvements; Machinery; Furniture, Fixtures & Equipment; Working Capital; Soft Costs; and Inventory & Supplies.

* subject to Federal Labor Standards Provisions (see below) ** loan term should not exceed lease

Ineligible Use of Proceeds:

Accounts Receivable; Wages; Advertising; Refinancing; Loan packaging fees; Application fees.

Ineligible Users:

Lending institutions; Recreation facilities; Investment real estate not tied to specific job creation/retention activity; Gambling facilities; Bars; Taverns; Restaurants; Grocery and food stores; 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; Laundromats and similar personal services; Nursing homes;

Family day care homes; Day care centers; Businesses operated from the home.

Amount of Participation:

At least 60% of the project cost is funded privately, either through 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 twelve (12) years with a (5) year call.


First mortgage or subordinate mortgage to a bank; Tangible personal property; Furniture, Fixtures & Equipment; Marketable securities. An appraisal may be required on property taken as collateral. Appraisal values must be greater than the loan financing on the property, and can not exceed the program loan-to-value ratio.


Personal guarantees from company owners and spouses if involved in the operation of the business. Corporate guarantees.

Federal Labor Standards Provision:

All Local Development Corporation funding programs are subject to the Federal Labor Standards Provisions and the Davis-Bacon prevailing wage requirements (as determined by the U.S. Department of Labor) where construction and/or renovation applies.

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 (51%) of the jobs to be created or retained must be filled by people from low and moderate-income households, or available to people from low and moderate-income households.

United States Department Of Housing And Urban Development Income
Guidelines, Effective 11-30-12

Family Size









Low Income









Job Cost Ratio:

1 full-time job equivalent: $25,000

Business Start-ups

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.