Essex County IDA Loan Program
Essex County IDA manages a loan pool that leverages several
funding sources to allow business and industry access to an assortment of
diverse financing programs to encourage economic development. This cooperative
approach to financing opportunities offers the prospective borrower a single
point of contact and a single application process through which several
financing sources may be accessed. Technical assistance is also available.
Terms & Conditions: conditions of loan will be
determined by the IDA at its discretion, based on such factors as
the structure of other related loans, the nature of the collateralized assets and
borrower's projected ability to pay.
Terms of loan of a fixed asset loan
will generally be consistent with the useful life of the assets being
financed, such as life periods being consistent with standard commercial lending policies.
Land & Building - up to 15 years, Machinery & Equipment - up to 10 years and Working Capital - up to 5 years
Eligible uses of funds: Fixed assets, current assets (including; inventory, receivables and
permanent working capital), business activities (manufacturing (defined as; fabrications,
assembly, processing, growing, packaging, or other enterprises that involve
production of an end product), retail, other (transportation, utilities,
communications, construction trades, wholesale distribution, agriculture,
forestry, accommodations, recreation, food & beverage, art/craft and
Essex County IDA Loan Policy
Loan Application, Personal Financial Statement and Credit Authorization Form
Hurricane Irene Recovery Community Loan Fund
The primary objectives of the loan program are to facilitate the assistance to businesses which have incurred additional costs and economically impacted by Hurricane Irene on August 28, 2011. Program funds may be used to justifiable business purposes in direct reference from Hurricane Irene on August 28, 2011..
Terms & Conditions: A moratorium on loan principal and interest for 6 months. Once loan repayment begins, there is 0% interest. The term with fixed asset loan will generally be consistent with the useful life of the assets being financed, such useful periods being consistent with standard commercial lending policies but in no instance exceeding ten (10) years. The term of a line of credit and working capital may not exceed five (5) years.
Businesses must be located in Essex County to be eligible. Eligible businesses include manufacturing, retail transportation, utilities, communications, construction trades, wholesale distribution, agriculture, forestry, accommodations, recreation, food and beverage, arts/crafts, professional services not for profits. Businesses must be independently owned and operated, 100 employees or less and a NYS tax payer must be in business since June 1, 2011.
Financing may not exceed a ration of $25,000 for each business loan request for lines of credit or working capital and a maximum of $25,000 for equipment and machinery. For equipment and machinery loan requests, documentation of change in business market must be submitted. Appropriate documentation for use of fund must be supplied to the IDA for all draw down of funds (proposed source and use of funds), including receipts, 3rd party estimates for all project costs, for all requests for lines of credit and debt financing and refinancing.
Hurricane Irene Loan Policy & Guidelines
Hurricane Irene Loan Application
Tax-Exempt Industrial Revenue Bonds (IRB's)
Eligible projects include: manufacturing
facilities which are used in manufacturing or production of tangible personal
property and facilities which are directly related and ancillary to a
manufacturing facilities if such facilities are located on the same site as the
manufacturing facility and are not more than 25% of the net proceeds of the bonds
are used to provide for directly related and ancillary facilities. These
directly related and ancillary facilities include office and warehouse space.
Ancillary activities must be subordinate to and integral to the manufacturing
process. Eligible projects include: purchase and
rehabilitation of existing buildings, construction of new buildings and
Benefits include: reduced interest rate for financing, bond
financed projects exempt from sales tax for development and mortgage recording
tax and the project may be eligible for property tax abatements.
IRB Financial Assistance Application
Essex County Capital Resource Corporation
Specifically designed to assist not-for-profits, the mission of the Essex County Capital Resource Corporation is to encourage community and economic development, as well as job creation and retention. The CRC is able to assist not-for-profits undertake capital projects by providing lower-cost financing programs. Using the CRC is a tool, lenders receive financial benefits on loans they provide to qualified not-for-profits, thereby lowering the cost to the borrower.
Like the IDA, the Essex County CRC assists local businesses with financing for capital projects. However, the IDA is prohibited from working with not-for-profits. With the establishment of the CRC in 2010, some of Essex County's largest employers that are also not-for-profits are now able to add facilities and equipment at a cost savings.
The Essex County CRC board is made up of the same officers and members as the IDA board. The CRC board meets regularly in the offices of the Essex County IDA in Elizabethtown.
CRC Financial Assistance Application
Straight Lease Transaction
A transaction whereby the
Agency takes title, possession or control of property of a project occupant,
thereby entitling such property to be exempt from taxation according to the
provisions of the Act, even though no financial assistance in the form of
proceeds of bonds issued by the Agency is provided to the project occupant (a
"Straight-Lease Transaction"). The purpose of this lease policy is to set forth
the circumstances under which the Agency will consider undertaking a
IDA Uniform Tax Exemption Policy
Straight Lease Policy
Payment in Lieu of Taxes (PILOT) Program
The County and taxing
jurisdictions affected by the proposed “applicant project” will have the ability to
evaluate and adopt “Payment in Lieu of Taxes” (PILOT) Agreements that will be
beneficial to the developer and the community and fit the following
categories: Industrial/Manufacturing, Warehouse/Distribution Facilities,
Commercial/Retail Facilities/Office Buildings/Community Facilities.
Projects will be evaluated to determine which PILOT Schedule will have a greater economic impact
a high level of commitment for permanent payroll level in terms of number of
jobs created, number of potential spin off jobs, investment in total project,
local business impact, and community investment.
Property Tax Abatement
Many towns in Essex County have adopted a 485-b policy. Any Town resident who has recently
invested more than $10,000 in their business for construction, alteration,
installation, or improvement may be eligible for a substantial 10 year real
property tax exemption. This exemption is not automatic, you must apply for
it. To find out if you are eligible, contact the local tax assessor. Call the
Essex County Real Property tax office at 518-873-3400 for the number of your