Businesses > Economic Development > Albany Local Development Corporation (ALDC) > Loan Information

ALDC Loan Information

ALDC offers business loan programs with the goal of fostering business growth and job creation in the City of Albany. The ALDC seeks to encourage investment that will expand the commercial and industrial tax base for the City of Albany.

ALDC Loans and Guidelines

ALDC Revolving Loan Fund
Lending activity of this program is limited to prospective or existing businesses in the City of Albany and to projects that can demonstrate a significant economic impact to the City of Albany. Loan proceeds can be used for acquisition of real property, machinery and equipment; construction, renovation or rehabilitation of real property and purchase of fixed assets. Consideration of retail or restaurant establishments will only be given if the project includes the improvement of real estate and will have a significant economic impact on the City of Albany.  Maximum loan amounts are $100,000. Loans are limited to 50% of the total project cost and should be used in connection with another primary financing source.  Borrowers are expected to provide a minimum of 10% owner equity contribution. Approval decisions are made by a loan committee and the Albany-Colonie Chamber of Commerce administers the loan. Applications must be accompanied by a nonrefundable $250 application fee.

Enterprise Community Loan Fund
Lending activity of this program is limited to prospective or existing businesses located within the former Enterprise Community boundaries or the designated Empire Zone areas within the City of Albany. The use of loan proceeds are limited to the purchase of fixed assets or real estate and generally may not exceed one-half of the total project costs. Loans must have a significant impact upon the economic well being of the City of Albany and its residents. Potential loan recipients must demonstrate that one job will be either retained or created for every $35,000 lent and provide evidence that without the assistance of the ALDC, the project would not proceed. Borrowers are expected to provide a minimum of 10% owner equity contribution to the project as a source of funds. Approval decisions are made by a loan committee. Applications must be accompanied by a nonrefundable $250 application fee.

Statewide Zone Capital Corporation (SZCC)- Empire Zone Loan Fund
The SZCC loan fund provides low-interest rate loans to certified Empire Zone businesses. Loan proceeds can be used for working capital, equipment acquisition and real estate purchase.  SZCC loans range from $30,000 to $300,000 and should be used in connection with other financing sources. Borrowers are expected to provide an equity contribution. Completed applications are underwritten and approved by New York Business Development Corporation (NYBDC). A $250 nonrefundable fee must accompany applications. Projects must be reviewed and recommended by the City of Albany Zone Administrative Board.

ALDC Loan Application

Other Loan Options

Albany-Colonie Chamber of Commerce Entrepreneurial Assistance Center Loan Fund
Loans through this fund range from $1,000 to $25,000 and can be used to purchase fixed assets or for working capital.  Funded by various public and private institutions, these term loans or lines of credit have an interest rate of Wall Street Prime plus 2% fixed Street Prime variable monthly and an annual .25% servicing fee is charged.  Proceeds can be used to purchase fixed assets, real estate, or for working capital.

Al Tech Loan Fund
This loan fund provides term loans ranging from $35,000 to $300,000. The interest rate is Wall Street Prime minus 3% with a floor of 5%, fixed for the term of the loan. Loan proceeds can be used to purchase fixed assets or for working capital. The Al Tech portion of the loan is exempt from the mortgage recording tax. A $350 application fee applies.

SBA Pre-Qualification Loan Program
Through this program, prospective borrowers can receive assistance from the Chamber in developing viable loan application packages and securing financing.  Once assembled, loan packages are submitted to the SBA for expedited consideration.  If an application is approved, the SBA will issue a letter of pre-qualification stating intent to provide its guarantee on the proposed financing.  Upon receipt of this letter, the Chamber will assist borrowers in locating a suitable lender.  The maximum loan amount available under this program is $250,000.  A loan packaging fee of $300 applies.

For more information on any of the Albany-Colonie Regional Chamber of Commerce Loan Funds call (518) 458-9851 or go to www.ac-chamber.org.

Capital District Community Loan Fund (CDCLF)
The Capital District Community Loan Fund (CDCLF) is a non-profit community development financial institution serving the Capital Region.  It serves as a community-based lender to expand access to credit and capital in disadvantaged communities.  Typical loans are given for the development of housing and other facilities, and can be used toward working capital, equipment, inventory, site acquisition, or new construction. Both short- and long-term loans are available, with a modest application fee, and loan applications may be submitted at any time. Entrepreneurs and community groups are encouraged to contact the Community Loan Fund early in the planning and development of an idea.  For more information, or to set up an appointment, call CDCLF at (518) 436-8586, or visit their website at www.cdclf.org

New York Business Development Corporation (NYBDC)
A number of loan programs are available through NYBDC to promote economic activity within New York state. NYBDC is a complement to conventional banking, working in partnership with banks to provide term loans, many of which do not meet the requirements for traditional financing. The goal is to be more creative in underwriting, often including multiple participations, SBA guarantees, flexible amortization and long-term payouts. For more information call (518) 463-2268 or go to www.nybdc.com.

U.S. Small Business Administration (SBA) 504 Program
Used in conjunction with Partnership programs or conventional lending institutions, SBA 504 loans enable growing businesses to secure long-term, fixed-rate financing for major capital assets.  This low-cost second mortgage financing may be exempt from mortgage recording tax; 10- and 20-year terms are available.  Empire State Certified Development Corporation is the local SBA certified lender and can be contacted at (518) 463-2268 or go to www.nybdc.com.

New York State Energy and Development Authority (NYSERDA) Smart Loan Fund
Interest rate reductions are available on loans from participating lenders for energy efficiency improvements and renewable technologies.  For more information on all of NYSERDA Loan Funds go to www.nyserda.org or contact a local certified NYSERDA contractor at the Environmental Business Association of New York at (518) 432-6400 or go to www.eba-nys.org.