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OTSEGO COUNTY LOAN PROGRAMS
The Otsego County Economic Development Department, the COIDA and OCDC are committed to helping businesses in Otsego County grow. In addition to technical assistance, these organizations are able to offer agricultural, manufacturing, and industrial businesses many loan and tax assistance programs.
| OTSEGO COUNTY DEVELOPMENT CORPORATION |
| Use: |
Agricultural and Hi-Tech Businesses |
| Loan Amount: |
Range from $12,000-$75,000 |
| Interest Rate: |
4% fixed interest |
| Term: |
3-5 years Working Capital
5-7 years Machinery and Equipment
10-15 years Real Estate Financing |
| Project minimum: |
$30,000, with the County funding no more than 40% of the total project. |
| Job Creation: |
One job should be created for every $10,000 borrowed. |
"This institution is an equal opportunity provider, and employer. To file a complaint of discrimination,
write: USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W,
Washington, D.C. 20250-9410 or call (800)795-3272(voice) or (202)720-6382(TDD)
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| OTSEGO COUNTY REVOLVING LOAN FUND |
| Use: |
Commercial and Manufacturing Businesses |
| Loan Amount: |
Range from $30,000-$150,000 |
| Interest Rate: |
4% fixed interest |
| Term: |
3-5 years Working Capital
5-7 years Machinery and Equipment
10-15 years Real Estate Financing |
| Project minimum: |
$75,000, with the County funding no more than 40% of the total project. |
| Job Creation: |
One job should be created for every $20,000 borrowed. |
| COUNTY OF OTSEGO INDUSTRIAL DEVELOPMENT AGENCY |
| Use: |
Commercial and Manufacturing Businesses |
| Loan Amount: |
Range from $50,000-$150,000 |
| Interest Rate: |
4% fixed interest |
| Term: |
3-5 years Working Capital
5-7 years Machinery and Equipment
10-15 years Real Estate Financing |
| Project minimum: |
$125,000, with the County funding no more than 40% of the total project. |
| Job Creation: |
One job should be created for every $20,000 borrowed. |
Sale/Leaseback Agreements: By taking a nominal interest in manufacturers real property the Industrial Development Agency can provide the following benefits:
Payment in-Lieu-of Taxes (PILOT): Property taxes are frozen at their current level for five years. In addition, the following abatement schedule applies for improvements (e.g. a building) to the property:
| Manufacturing Property |
| Years
| Percentage of Abatement
|
| 1 - 5 |
75% |
| 6 - 10 |
50% |
| 11 - 15 |
25% |
Sales Tax on Construction Materials and Equipment: None during the project phase (usually 6-12 months).
Mortgage Recording Tax: None
Industrial Revenue Bonds: For larger projects in excess of $1-$1.5 million. The issuance of tax-exempt industrial revenue bonds can save a company a substantial amount of money - interest savings of approximately 2% begin to significantly offset bond closing costs.
Civic Facility Revenue Bonds: For Not-for-Profit organizations that need funding for new facilities, expansion of existing facilities, or development projects.
Otsego County Economic Development Department
The County of Otsego Industrial Development Agency
The Otsego County Development Corporation
242 Main Street
Oneonta, NY 13820
(607) 432-8871 / (607) 432-5117 (fax)
www.otsegoeconomicdevelopment.com
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