Doing Business in Albany

The City of Albany continues to offer businesses a prime destination to invest and grow a business. Albany is home to the State Capitol, Albany NanoTech, world renowned hospitals, a number of educational institutions, as well as a variety of businesses. These assets help create the strong economic climate which provides Albany with a competitive advantage in attracting new businesses.

The Albany Local Development Corporation and Development and Planning staff continuously work to create a business friendly environment within the City of Albany. As part of the business development services offered in the City of Albany, staff works with a number of organizations and various lending programs. Our goal is to provide businesses with the available resources in order to foster business growth and job creation in the City of Albany. Below is information on some of the lending sources available to businesses.

Loan Options

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.

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.

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.

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 recommened by the City of Albany Zone Administration Board.

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.

In addition to the above resources, the City of Albany, Business Resource Guide is a publication which provides a complete listing of resources available to assist businesses in their start up or expansion within the City of Albany. It also serves as a general guideline of the process and requirements for establishing a business enterprise in the City of Albany.

Business Resource Guide