The Linked Deposit Program (LDP) helps existing New York State firms obtain reduced-rate financing so they can undertake additional investments in their business. GRB has completed a number of these loans successfully and it can be an option for qualifying organizations to lower their interest costs and move forward on business objectives.
Businesses commonly use LDP to:
- Improve their competitiveness
- Expand their markets
- Develop new products
- Introduce new technologies
- Facilitate ownership transition
- Modernize their equipment, increase their capacity or capabilities
- Expand their facilities, purchase real estate or make building renovations
How it works
Eligible businesses obtain loans from their bank and the New York Business Development Corporation.
New York State places a deposit for the same amount as the loan at the bank and earns less interest on the deposit, allowing the lender to transfer the interest rate savings on to the borrower. At the end of the four year term of Linked Deposit assistance, the bank returns the deposit to New York State.
For lenders, LDP provides a number of advantages that makes lending to eligible businesses more favorable.
Program limits
- An eligible business can have an unlimited number of LDP loans outstanding, totaling $6 million.
- The single deposit limit has been increased to $4 million; there is no minimum deposit.
- Total lifetime assistance (including renewals and prior deposits) cannot exceed the legislated lifetime maximum of $6 million.
Who qualifies?
- An eligible business can have an unlimited number of LDP loans outstanding, totaling $6 million.
- The single deposit limit has been increased to $4 million; there is no minimum deposit.
- Total lifetime assistance (including renewals and prior deposits) cannot exceed the legislated lifetime maximum of $6 million.
If interest rates have been pushing off plans for expanding your business or adding a new product or service and you qualify, LDP can be a great way to secure the funding needed to meet your goals. Contact GRB’s Commercial Banking Team for more information.
Find more information on LDP on the Empire State Development website.
