City of Binghamton, New York

Binghamton Local Development Corporation (BLDC)

Overview

The Binghamton Local Development Corporation provides low-interest microenterprise, facade and revolving fund loans to support your business growth  through property acquisition, start-up and expansion (see below). Please visit the Binghamton Economic Development Office page for additional information. The Binghamton Local Development Corporation is an Equal Opportunity Lender.

Mission

The Binghamton Local Development Corporation exists to further sustainable economic development in the City of Binghamton by attracting new business, retaining and growing established business, building industrial and commercial capacity, promoting employment, and fostering entrepreneurship and innovation. Adopted by the BLDC Board of Directors - September 16, 2010

About Us

The Binghamton Local Development Corporation develops loan programs, initiatives and outreach efforts to support the City's economic development strategy, in conjunction with the Binghamton Economic Development Office (BEDO). The BLDC manages low-interest loan programs to support business development within the City of Binghamton. The organization applies for and administers grant programs from Federal, State and private sources to supplement the loan funds targeted initiatives in support of the City's economic development strategy, in conjunction with the Binghamton Economic Development Office BLDC members provide input and expertise from a variety of community sectors including finance, business, and organizations that represent low to moderate income populations. The membership elects a Board of Directors to govern the activities of the corporation.

Special Projects/Revolving Fund Loans

Loan Guidelines:

  • Up to 40% of the total project cost
  • Low interest rate - prime rate (3.75%) published in the Wall Street Journal less 0.5%
  • Terms to match the security or collateral, typically 15 years for real estate, 7 years for machinery and 5 years for FF&E
  • Job Creation: 1 FTE job must be created for every $35,000 lent with all CDBG-funded projects

Eligibility:

  • Borrower: Proprietorship, Partnership, Corporation or LLC
  • Property: Properly Zoned for commercial use within the City limits of Binghamton
  • Verification from the City that project meets zoning & building requirements

Uses:

  • Acquisition of land, building, machinery, equipment, furniture/fixtures; development, rehabilitation, renovation, improvement of land, building and facilities. Pollution control and related improvements.
  • Other project activities deemed by the BLDC Board of Directors to be within the general interest and purpose of it's mission and consistent with federal guidelines and current HUD requirements.
  • Origination fee: 1% of loan, not to exceed $1,000
  • 2% non-refundable commitment fee due upon signing of commitment letter.

Micro Enterprise Loans

Loan Guidelines:

  • Business of five or fewer employees, one must be owner
  • Up to $24,999, up to 5-year term
  • Low interest rate: current prime rate (3.75%) published in the Wall Street Journal plus 0.5%

Uses:

  • Purchase of fixed assets
  • Working capital or inventory
  • Application Fee: 1%, minimum $50.00
  • 2% non-refundable commitment fee due upon signing of commitment letter.

Commercial Facade Improvement Loans

To improve the overall "curb appeal" of the City's commercial districts, the COMMERCIAL FACADE IMPROVEMENT PROGRAM can provide financial assistance to local businesses to upgrade the exterior buildings and historical restoration.

Loan Guidelines:

  • Up to 75% of total project costs to a maximum of $100,000.
  • Max Term: up to $50,000 - 7 year term; up to $100,000 - 10 year term
  • Low interest rate: current prime rate (3.75%) published in the Wall Street Journal
  • Rate Margin: up to 5 years: 0%; up to 10 years: 0.5%
  • Up to 7-year term, determined by BLDC Loan Committee

Eligibility:

  • Borrower: Proprietorship, Partnership, Corporation or LLC
  • Property: properly Zoned for commercial use within the City limits of Binghamton
  • Verification from the City that project meets zoning and building requirements

Uses:

  • Historical restoration on the exterior of the building
  • Roof, door and window replacement
  • Exterior refinishing - masonry, paint

Origination fee: 1%, minimum $100.00

2% non-refundable commitment fee due upon signing of commitment letter.

The following do not qualify for BLDC Loan Program funds:

  • Refinancing
  • Payment for purchases made prior to project approval
  • Speculative buildings or projects
  • Projects where appropriate financing from other sources is available
  • Not-for-Profit entities
  • Residential development

Application Process:

See the Application Process Flowchart in the documents section on the right-hand side of this page.

Contact the BLDC office by e-mail, phone, or in person to review your project plans, receive an application package and to discuss the process. The BLDC expects many of the same documents and assurances as any private lender.

Once the BLDC has accepted a complete application and fee, the review and decision process by the BLDC Board takes approximately 4 – 8 weeks under normal circumstances. Loans that require approval from City Council typically take an additional 3 to 4 weeks.

Energy Efficiency Green Jobs Revolving Loan Fund

Eligible Borrowers:

  • Business entities that have established a location within the City limits and can demonstrate a detailed plan for the incorporation of energy efficient renovations to commercial or industrial space that's targeted for revitalization. 
  • Local Contractors that provide proof of BPI certification (verification of certification required) with an established business located in the City of Binghamton.  Or a contractor located in the City of Binghamton looking to start up a BPI-certified business in the City of Binghamton.

Eligible Uses for BPI Certified Contractors: purchase of business equipment; working capital, including inventory. 

For Small Businesses: energy efficient interior improvements of commercial/retail/industry space (heating, electrical work, plumbing, interior insulation, window replacement, etc), and other project activities deemed by the BLDC Staff and Board of Directors to be within the general interest and purposes of its mission and consistent with federal guidelines for the Green Jobs Revolving Loan Program.

Loan Amounts:

Commercial Energy Efficient Improvements: Minimum loan amount of $5,000 with a maximum loan amount of $35,000. 

BPI Certified Contractors: maximum loan amount of $70,000; 1 full-time job must be created for every $35,000 loaned for business development or expansion.

Interest Rate: prime rate (3.75%) as published in the Wall Street Journal less rate margin of 0.5%. 

Terms:

Energy efficient improvements for commercial /retail space, 3-5 year term;

Equipment, working capital, and inventory for Local BPI Certified Contractors can receive up to a maximum of a 7 year term. A security interest in business assets of the   company will be required.  Additional collateral including personal guarantees may be required.

Equity:  5% owner equity required.

Fees:

$50 non-refundable application fee; 1% non-refundable commitment fee due at signing of commitment letter.  Closing/filing fees, including Counsel's opinion letter for Borrower.  All loan payments are due within 15 days of due date, a penalty of 5% of the monthly payment will be applied to late payments. 

Here's another way we can help!

In addition to alternative financing programs, the Economic Development Office can assist with other general business information. Staff can provide information and referrals for details that commercial and industrial firms require. Site selection, relocation, assessment and tax information, access to State and Federal programs, as well as local and regional issues, are available through the Economic Development Office.

BLDC Membership & Meetings:

In accordance with the by-laws, adopted April 25, 2013, BLDC membership shall have not less than seven members, no more than thirteen directors unless changed by amendment of the Certificate of Incorporation or by the by-laws. The President of the Binghamton City Council shall appoint two Directors from the Binghamton City Council. There shall be one member appointed from the majority party and one shall be from the minority party, except in the event that only one party is in power, then only one member from the governing party shall be appointed. Directors appointed from the Binghamton City Council shall serve until the end of the one-year term of office of the President of City Council that appointed them.

Directors by reason of their public office shall include the following: the Mayor of the City of Binghamton, the Director of Finance of the City of Binghamton, the Director of Planning, Housing & Community Development of the City of Binghamton, and the Corporation Counsel of the City of Binghamton.  The terms of office of Directors appointed by reason of their public office shall expire with their term of public office.  Such Directors may not resign except with consent of the Mayor.  If the Mayor consents to such a Director resigning, then such Director will be succeeded by his/her deputy. Such Directors cannot be removed.

The Mayor of the City of Binghamton shall appoint all remaining Directors, at his/her discretion, which may include a representative from the community that either directly or indirectly represents the low to moderate income producing citizens, representatives from among the business community of Binghamton, the banking community of Binghamton, the Community Development Advisory Committee, the Downtown Binghamton Business Association, representation from the minority business community and such at-large representatives of the Binghamton community as deemed appropriate by the Mayor.  Directors appointed by the Mayor shall serve a term of two years.

The BLDC is staffed by City of Binghamton employees who also operate the Binghamton Economic Development Office consisting of the Executive Director, Assistant Director, Economic Development Specialist and Financial Analyst.

Funding for BLDC loan programs comes from the Department of Housing Urban Development's Community Development Block Grant (CDBG), as well as other federal sources. CDBG provides low-cost loans to help fill the gap in financing packages for a variety of transactions, including acquisition, expansion, fixed assets, rehabilitation, and facade renovation. Loans may be subject to job development guidelines, and all loans require application fee and owner equity.  Additional loan programs are supported by funding from the HUD Urban Development Action Grant.  The BLDC administers state and federal grants from time to time.  Currently it has a Green Jobs Revolving Fund Loan Program in partnership with the United States Department of Agriculture. 

John J. Saraceno, President
Arthur C. Smith, Vice President
John J. Saraceno, Treasurer
Ron Sall, Secretary

Members Appointed  Expiration Appointed By
Richard C. David, Mayor (Ex-Officio) 1/1/2014 12/31/2017 BLDC By-Laws
Kenneth J. Frank, Corporation Counsel (Ex-Officio) 1/1/2008 12/31/2017 BLDC By-Laws
Chuck Shager, Comptroller (Ex-Officio) 6/2/2014 12/31/2017 BLDC By-Laws
Juliet M. Berling, Director of Planning, Housing & Community Development (Ex-Officio) 3/1/2015 12/31/2017 BLDC By-Laws
John Saraceno 1/1/2016 12/31/2017 Mayor
Art Smith 1/1/2016 12/31/2017 Mayor
Ron Sall 1/1/2016 12/31/2017 Mayor
Per Stromhaug 1/1/2016 12/31/2017 Mayor
Mary Jacyna 1/1/2016 12/31/2017 Mayor
Chris Papastrat, Council Member (Ex-Officio) 1/1/2017 12/31/2017 City Council 
Dani Cronce, Council Member (Ex-Officio) 1/1/2017 12/31/2017 City Council