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 (as of 11/15/2012): 2%
The three 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.

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).

Collateral:

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

Guarantees:

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.

The Commercial Façade Program is essential to the Economic Development Department’s overall mission to assist in the prevention and elimination of slums and blight and to encourage the revitalization and eliminate the deterioration of commercial and industrial centers within the Town’s urban core “Central Business Districts.”

Application Fee: $100.00 (non-refundable)

Application Period: Open

Interest Rate: 0% (principal only payments)

Amount of Financing:

Up to 50% of eligible projects, generally not to exceed $10,000. Minimum loan is $2,500

Commitment Fee:

One percent (1%) of the approved loan amount

Borrower:

Commercial property owners (where at least 51% of the building is used for commercial purposes only). No applicant that has defaulted on a previous Local Development Corporation loan will be eligible to apply

Eligible Areas:

Central Business District (CBD) areas of the Town of Union, including the Villages of Endicott and Johnson City (see Town of Union Economic Development Map for eligible areas)

Eligible Use of Proceeds:

Design elements that are a structural part of the commercial building (i.e. window & door replacement, exterior refinishing, and other design elements at the discretion of the LDC Board)

Ineligible Use of Proceeds:

General maintenance items will not be allowed for existing commercial property owners and may be allowed for new property owners at the discretion of the LDC Board (i.e. painting, roof repairs/replacement, etc..). New construction.

Ineligible Users:

Commercial property owners applying for façade funding to lease to a tenant engaged in one or more of the following industries sectors will not be eligible; Not-for-profit organizations, Recreation facilities not open to the public; Adult entertainment operations, Gambling facilities; Day care centers, if not licensed by the state, Residential housing, if it’s determined that the residential component of the project will be occupying more than 49% of the buildings overall usable square footage, in addition to other industry sectors that may not be listed above

Amount of Participation:

At least 50% 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:

Not to exceed a term of five (5) years

Collateral:

First mortgage or subordinate mortgage to a bank. 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, other collateral may be accepted at the discretion of the LDC Board

Guarantees:

Personal guarantees of property owners. Corporate guarantees (if applicable)

Federal Labor Standards Provision:

• Commercial façade projects will not be subject to Federal Labor Standards Provisions

Other Criteria:

• Demonstrated ability to repay debt
• Demonstrated commitment by the commercial property owner (s)
• Firm project and project cost
• If project is located in a local, state and/or national historic preservation area design elements must have all necessary approval(s)
• Project must meet all applicable zoning and code regulations
• The commercial property owner will be required to obtain and comply with all applicable federal, state, and local government regulations, approvals, and permits required by law to be obtained in carrying out the work set forth plans and specifications
• All obligations of the property owner to the Town of Union LDC, Town of Union, Village of Endicott, Village of Johnson City or Broome County must be current, including but not limited to any and all loan payments as well as real estate, school, water and sewer taxes on all properties owned in the Town of Union.
• In the event that the building is sold or title is transferred, the unpaid balance of the loan will become due and payable

Job Creation and Retention: None

Job Cost Ratio: None

Financial assistance may be available in the form of a Section 108 loan for eligible economic development projects. Maximum loan amount will be based on the town’s annual allotment under the Community Development Block Grant (CDBG) program funds. The term of the loan may be for as long as 20 years. The interest rate on the loan typically does not exceed the usual Treasury borrowing rate by more than a small additional basis point spread, depending on the maturity.

Proposals for funding consideration must meet the Federal Community Development Block Grant objective of "prevention and elimination of slums and blight."Evidence of blighted conditions may be provided through the following: Abandonment of buildings, as evidenced by lack of occupants; Removal of utilities; Boarded and/or physical condition of entries and windows ; Violations, as cited by appropriate municipality. An environmental audit of the property may be required as part of application procedures.

Amount of Financing:

Up to 90% of eligible projects, generally not to exceed $100,000. Minimum loan is $10,000.

Interest Rate (as of 11/15/2012): 3%

Borrower:

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:

Razing structures; Removal of underground and above ground tanks; Payment of professional fees for services, such as engineering and architectural services.

Term of Loan:

Not to exceed 5 years. Any remaining balance will become due in full if the property is transferred or sold by the borrower.

Collateral:

First mortgage or subordinate mortgage to a bank; Tangible personal property; Marketable securities. Appraisals will be required on properties taken as collateral. Appraisal values must be greater than the loan amount and meet the program loan-to-value ratio.

Guarantees:

Joint and personal guarantees from company owners. Corporate guarantees, as appropriate.

Prevailing Wage:

Contractors involved with demolition/construction projects are subject to complying with the Federal Labor Standards Provisions and the Davis-Bacon Act.

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.

Borrower:

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.

Collateral:

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.

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 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.

1 full-time job equivalent: $25,000Job Cost Ratio:

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.

The Economic Development Department provides financial assistance to start-up and expanding businesses through the Local Development Corporation of the Town of Union.The Town of Union Microenterprise 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 Microenterprise Program is an initiative in order to make funding available to start-up or existing businesses with five (5) or fewer employees (one of which must be the owner of the existing or proposed business) that may not be able to be approved for a loan through what might be considered a traditional means of financing (i.e. Commercial Bank, Credit Union, etc..) without the use of public funds.

Application Fee: $50.00 (non-refundable)

Application Period: Open

Interest Rate (as of 11/15/2012): 1.5%

The one and one half (1.5%) percent interest rate is fixed for three (3) years.

Amount of Financing:

Up to 75% of eligible projects, not to exceed $20,000.Minimum loan is $2,500.

Commitment Fee:

One percent (1%) of the approved loan amount

Borrower:

Any legal borrowing entity.No borrower that has defaulted on a previous Local Development Corporation loan or any other direct or indirect federally funded or guaranteed loan program will be eligible to apply.

Eligible Areas:

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

Eligible Use of Proceeds:

Acquisition of land and buildings; *New Construction; *Expansion; *Renovations; *Leasehold improvements; Acquisition of existing businesses; Furniture and Fixtures; Machinery and Equipment; Trucks; Automobiles; Inventory; Working capital, Fees for professional services, such as appraisals, surveying, accounting, engineering and architectural.

* subject to Federal Labor Standards Provisions (see below)

Ineligible Use of Proceeds:

Accounts Receivable; Wages; Speculative product development; Refinancing; Incorporation fees; Loan packaging fees; Application fees, Late fees and fines.

Ineligible Users:

Lending institutions; Recreation facilities not open to the public; Investment real estate; Gambling facilities; Bars; Tavern; New, used and rental cars sales/leasing businesses; Laundromats, Beauty and barber shops and similar personal services; Nursing homes; Family day care homes, or Day care centers, if not licensed by the state; Businesses operated from the home.

Amount of Participation:

At least 25% 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 and the approved amount of the loan not to exceed a term of three (3) years.If leasing, the term of the loan can not exceed the length of the lease.

Collateral:

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

Guarantees:

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

Federal Labor Standards Provision:

This loan program is 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) years of the loan approval (not including the owner(s)).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.

1 full-time job equivalent: $20,000Job Cost Ratio:

Business Start-ups

Start-up businesses may apply for funding under the Town of Union Microenterprise 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 (SBDC) or similar private and public agencies.