The Oneida County Rural Development & Agri-Business Loan Program is designed to support rural economic development and agri-business ventures by securing financing not normally available through traditional channels.

The program is designed to provide low interest loans to help small existing or start up companies provide new job opportunities, keep existing jobs and to broaden the tax base in eligible rural areas of Oneida County. Assistance may be provided for agri-business ventures that demonstrate ability for business growth potential. The program is administered by the Mohawk Valley EDGE.

Funding for the Rural Development & Agri-Business Program is through a grant to Oneida County from the New York State Small Cities Community Development Program.

Mohawk Valley EDGE will work closely with the SUNY Small Business Development Center (SBDC) and Cornell Cooperative Extension, to assist prospective applicants complete business plans and provide technical assistance that is needed to help small businesses.

Loans

Up to 40% of the total project cost, with a minimum loan of $5,000 and a maximum loan of $50,000.
Minimum of 10% cash equity contribution by the borrower toward total project cost is required.
Bank financing required for at least 50% of the total project cost.
Public funds from other programs can be used for the balance of the project.

Program Requirements

The assistance must result in either the creation or retention of jobs that are available to low or moderate income persons as defined by New York State and U.S. Department of Housing & Urban Development (HUD) Small Cities Program guidelines.
Loans approved will be the minimum amount necessary to support the project.

Eligibility

Project must be located in the County of Oneida.
Businesses engaged in manufacturing, industrial, wholesale, technology, service (non-professional) and non-retail commercial/ service.
Loans can be used for purchase of and improvements to fixed assets (such as real estate, buildings, machinery and equipment) and working capital.
Use of funds must comply with the rules and regulations governing the New York State Small Cities Program.
Completed assessment of the need for further technical assistance through a review with Mohawk Valley EDGE & SUNY Small Business Development Center.
Refinancing of existing loans is not eligible, lines of credit and bridge loans are also not eligible.

Loan Terms & Rates

4% interest rate (fixed for the life of the loan).
Real Estate – up to 10 years.
Machinery and equipment – up to 7 years.
Working capital financing – up to 5 years.

Collateral

Real estate loans are generally secured by a second mortgage on the property being financed for loans in excess of $15,000.
Security interest in machinery & equipment, accounts/receivable, and inventory, subordinate only to a bank.
Personal guarantees are required.

Application Process

A complete applicant profile, which includes all necessary attachments including an approved business plan. A project review meeting with EDGE and SUNY SBDC to determine eligibility and identify need for technical assistance.
Applications are completed by the borrower.
All projects must be approved by EDGE Loan Committee, which meets monthly.
Average loan processing time is 45 days after receipt of complete application by EDGE.
Applications must be accompanied by letters of commitment for all other elements of project financing.
Borrower is responsible for all closing costs.