Business Assistance

In addition to low cost financing programs, the Town of Union Economic Development Department can assist with other general business information. The Economic Development staff can provide information and referrals for commercial and industrial firms. Site selection and relocation assistance, access to county, state and federal programs, and assessment and tax information, are all available through the Town of Union Economic Development office.

TOWN OF UNION BUSINESS ASSISTANCE
(TUBA) LOAN PROGRAM

The Town of Union Business Assistance (TUBA) Program is a powerful tool in promoting economic development in the entire Town of Union.

Application Fee:  None

Application Period: Open

Interest Rate: 4%
The four percent interest rate is fixed for 5 years. Depending on the term of the loan, the interest rate may be adjusted after 5 years to reflect the interest rate used by the Local Development Corporation. The interest rate will have a cap of 3%.

Amount of Financing:

Up to 40% of eligible projects, generally not to exceed $200,000. 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.

Eligible Use of Proceeds:

Fixed assets with a useful life of 5 years or more to include: Land; Buildings; * Construction; **Leasehold improvements; Acquisition of existing businesses; Machinery and Equipment; Trucks; Automobiles and Inventory.

  * subject to Federal Labor Standards Provisions
** loan term should not exceed lease

Ineligible Use of Proceeds:

Supplies; Accounts Receivable; Wages; Advertising; Speculative product development; Refinancing; Incorporation fees; Loan packaging fees; Application fees.

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; 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; Day care centers, if not licensed by the state; Businesses operated from the home; Businesses that derive a portion of sales from retailing.

Amount of Participation:

At least 50% of the project cost is funded privately, either through a private lender, another public lender or equity.

Eligible Areas:

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

Term of the loan:

Based on the life of the asset not to exceed a term of twenty (20) years.

Collateral:

First or subordinate mortgage to a bank.

Guarantees:

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 Act 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 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 Town of Union Business Assistance 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.