Loan programs

Owners of 3 Bears Bakery in Potsdam pose with AEDC Executive Director Jim Murphy (center) at their loan closing.

Owners of 3 Bears Bakery in Potsdam pose with AEDC Executive Director Jim Murphy (center) at their loan closing.

With more than 20 years of lending experience, AEDC has developed a systematic approach to credit analysis and portfolio management.

Staff has been trained in standard credit analysis techniques and utilizes state-of-the-art resources in their work. Staff performs initial credit analysis. Credit reports, income tax statements, business plans, at least one site visit and personal financial information provided by the client are all used in our review process.

Staff carefully analyzes applications to assess if the client meets specific lending criteria. If those thresholds are met, loan applications are presented to the AEDC Loan Review Committee, consisting of at least two members of the Board of Directors and eight other members from the region’s business and banking communities. The Loan Review Committee makes final approval.

AEDC retains an attorney to handle loan closings, mortgages and security agreements. Security collateral is sought for all loans and may range from security interest in personal property to real estate mortgages.  AEDC will accept subordinated positions on loans with other lenders. AEDC’s credit policies must meet the requirements of its funding partners, which include the U.S. Small Business Administration and USDA/Rural Development. AEDC is subject to periodic audits from these agencies.

Types of loans

AEDC continues to be an extremely active business lender throughout the region, with four distinct loan programs, including the U.S. Small Business Administration’s (SBA) Micro Loan Program, USDA/Rural Development’s Intermediary Relending Program, the Empire State Development Small Business Revolving Loan Fund and the USDA/Rural Development’s Rural Micro-entrepreneur Assistance Program (RMAP).

Currently we have micro-loan programs available for start-ups ranging from $500 – $50,000.  These loans are for purchase of business machinery and equipment, renovations and additions to facilities, inventory purchases, and working capital.  Total project cannot exceed $150,000.

The USRDA intermediary re-lending program allows us to partner with other lending institutions to provide the gap financing to complete a deal.  Our maximum loan in this program cannot exceed 40% of the total project, up to $150,000.  Housing and real estate purchases are not eligible for this financing.