LDC Revolving Loan Fund
The LDC is committed to serving new and existing businesses and industries, and to assist with the creation and retention of quality jobs through direct and collaborative funding of projects for the economic well-being of Franklin County. The LDC was established in 1989 to help businesses that needed financing, but were not in the market for bonds issued by the IDA. As an economic development fund, the LDC helps businesses create and retain jobs, and will provide loans for real estate, equipment and machinery, inventory and working capital.
Please contact Russ Kinyon at firstname.lastname@example.org for a conversation before applying for our loan program.
- Loan Amount
- Lending Rate
- Prime Rate
- Payment Timeline
- Processing Timeline
- Starting a Business
- Primary Lenders
- Personal Loan Guarantee
- Other Considerations
How much can I borrow with an LDC loan?
Available loan amounts are based on the quality of the project and collateral. The general Fund guidelines are to offer “gap” financing up to forty-five percent (45%) of a project’s cost, or up to $250,000, whichever is less. The Fund reserves the right to contribute more or less than the project maximum as circumstances dictate.
What is the lending rate and what is it based on?
The interest rate on all Fund loans will vary based on the merit of the applicant, the project and the impacts identified. The starting rate considered will be the Wall Street Journal Prime Rate (Prime) plus 1%. Adjustments to the interest rate may include increases due to high risk or reductions if projects strongly align with the priorities and goals of the program stated in the guidelines.
Where can I find the current Prime Rate?
Find information on the current Prime Rate here.
How long do I have to repay an LDC loan?
Repayment terms begin at 10 years for real estate and building construction or renovation. Terms for Furniture, Fixtures, Equipment (FFE) and Machinery (M) extend seven (7) years and working capital for up to five (5) years. Extended terms may be considered in special circumstances.
How long does it take to process a loan?
Loan timelines are largely contingent on the quality and thoroughness of information provided by the applicant including the required financial statements, documents, and business plan. In general, applicants can expect from 2 to 4 weeks for an approval decision due to board meeting timelines, but every effort is made to expedite decisions once requested information has been provided.
What can you do to help me start a new business?
We are here to talk to you at any stage of your business startup or expansion. We can provide financing, technical assistance and referrals to services that can help you walk through your business planning process and preparation of financial projections. These will be necessary for any bank and/or LDC financing needed to support your project. Additionally, we will look at your potential investment in the businesses and how much cash and other assets (equity) you can offer.
You can prepare your plans yourself with resources we can direct you to, hire someone, or work with one of our partners at the Small Business Development Center or the Adirondack Economic Development Corporation at no cost to you. If you are seeking to buy a business, free assistance is also available through our organization and the Center for Businesses in Transition.
Which institution should I contact as a primary lender for my business project?
It makes sense to start with the institution where you have an established relationship, such as a checking account, and branch out from there. Depending on the size and scope of your project, primary funding can come from a bank or credit union, a venture capital firm or other investors, family members or your own equity. The LDC will expect you to look to those sources first and then supplement any “gaps” in that funding. It is also common for more than one “gap” financer to jointly fund a project and the LDC often partners with other public and private lenders to make a project happen.
Do I have to personally guarantee the loan?
Yes, if you or others own twenty percent (20%) or more of the business project, you will need to personally guarantee the loan. This may include a pledge of personal assets as collateral, such as property, but the LDC typically takes a subordinate position to a primary lender.
What else do I need to consider in applying for a loan?
Make sure that your application is complete to shorten processing time, and keep in mind that the LDC has economic development objectives. Your investment and ability to create or retain jobs will be considered along with the feasibility of the project. This is where your Business Plan with financial projections can help us understand how you think this will work.