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

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 Recovery & Development Office. 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.

Loan Applicants Please Note: if interested in a business loan, please contact our office at (607) 772-7161 or ecodev@cityofbinghamton.com and we will set up a phone conference or in-person meeting practicing safe social distancing at City Hall.

Grant Guidelines

• Minimum request: $500.
• Maximum Request: $5,000.
• Grant funds can be received as reimbursement or paid directly to vendors.

Eligibility

• Graduates of the SBB607 program who have previously received and spent an initial grant from the SBB607 program.
• Graduates of the SUNY Broome EAC 60 Hour Program.
• Anyone who has received training and/or assistance comparable with the above programs and has completed an acceptable business plan and financial projections at the discretion of that training/educational program and BLDC staff.
• Applications will be evaluated by BLDC staff, and successful applicants will meet HUD Microenterprise guidelines.

Uses

• Accounting Services
• Legal Counsel Services
• Sign Creation Services
• Website Services
• Branding Services
• Real Estate Services
• Insurance
• Vendor Permits
• Licenses/License Renewals
• Incorporation
• Website Development
• Equipment
• Software Purchase or Subscription
• Inventory Purchases
• Other Costs as Approved by the BLDC

Resources

• 607 Step-Up Grant Guidelines
• 607 Step-Up Grant (Fillable)

Loan Guidelines

• Up to 40% of the total project cost
• Low interest rate: 75% of prime rate—fixed for the term of the loan at time of closing (prime rate as published in the Wall Street Journal)
• 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 and 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 its 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.

Resources

• Revolving Loan Application Guidelines
• Revolving Loan Application

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 (3.25%) 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.

Resources

• Microenterprise Loan Guidelines
• Microenterprise Loan Application

Expedited small business assistance loans for items such as equipment, signs or working capital:

• Up to $5,000 with up to 3-year term
• Low interest rate: current prime rate (3.25%) published in the Wall Street Journal plus 0.5%
• Origination fee: 1%/minimum $50.00/non-refundable
• Commitment fee: 2% of loan, non-refundable due upon signing of commitment letter
• Maximum percentage of project cost: 80%

Resources

• Mini-Microenterprise Loan Guidelines
• Mini-Microenterprise Loan Application

Grant Guidelines

• Minimum request: $1,000.
• Maximum Request: $35,000, $50,000 in Historic District.
• This is a matching grant.
  • Requests between $1,000 and $7,500 can cover up to 75% of total expenditures.
  • Requests between $5,001 and $35,000 ($50,000 in Historic Districts) can cover up to 50% of total expenditures.

Eligibility

• Property owners and multi-year commercial tenants with permission from property owners.
• Applicants must be up to date on taxes and have no active building/code violations or outstanding bills owed to the City of Binghamton.
• Multi-year tenants must have at least two years remaining on their lease. Preference will be given to tenants with at least five years remaining on their lease.

Uses

• Signs
• Awnings/Canopies
• Façade Improvements
• Removing and Disposing of Old Façade Coverings
• Removing Excessive Window Signage
• Exterior Lighting Installation
• Restoring Building Elements
• Other Façade Improvements at the Discretion of the BLDC

Resources

• Commercial Façade Improvement Grant Guidelines
• Commercial Façade Improvement Grant Application

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 (3.25%) 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

Resources

• Facade Loan Guidelines
• Facade Loan Application

Application Process Flowchart

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.

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.

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 U.S. Department of Housing and 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 a HUD Urban Development Action Grant. The BLDC administers state and federal grants from time to time.