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Statewide Zone Capital Corporation of New York

SZCC is a privately-owned, $27 million loan and investment fund whose capital is available to promote the expansion and growth of the businesses in New York's 51 participating Empire Zones.  Financing is available  for both new and existing businesses.

The fund started in May 2000.  As of mid-December 2000, the fund has approved 8 facilities for over $1 million.

Operations of the SZCC are managed by New York Business Development Corporation, a privately-owned financial organization that provides term financing to small businesses across New York State. 

SZCC complements conventional bank financing by partnering with banks to provide credit to businesses, many of which do not meet the requirements for traditional financing. 

SZCC Credit Terms

Dollar Amount: Loans and equity investments range from $30,000 to $300,000 (exceptions to $500,000). SZCC financing may represent only 50 percent of the total financing requested. Equity investments may never exceed a 25 percent ownership interest in the Zone Certified Business.

Minimum Down Payment: Zone Certified Businesses will be asked to provide a 10 percent equity contribution.

Interest rates: Fixed and floating interest rates are available at the Prime Rate minus 3/4 percent.

Collateral: Collateral will be sought to secure all SZCC financing. Acceptable security includes real estate mortgages (business or personal); liens on business assets; other corporate and/or personal guarantees; and assignment of life insurance policies.

Maturities: Maturities range from 3 to 15 years. Factors considered in establishing a maturity are the repayment ability of the Zone Certified Business and the useful life of the collateral.

Fees:  A non-refundable application fee of $250 is to accompany each application upon submission to SZCC. Origination fees may be assessed where applicable.

For more information

-- about SZCC financing:  Contact the Statewide Zone Capital Corporation of New York at (toll-free) 800-923-2504

-- about loans for businesses locating within Niagara Falls, visit our Loans page

 

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