As a small business in need of funding, you may have looked at traditional sources of financing-internal, bank conventional products, even SBA 7A guaranteed loans from banks and nonbank lenders. If you have tried these avenues and met with limited or no success, don't give up. There are numerous "niche" or special financing programs for small businesses on Long Island. Some are targeted to specific industries in order to help those industries grow on LI. Some are targeted to specific geographic areas in order to help revitalize those regions. Some are targeted to specific populations in order to strengthen their businesses.All have a social, economic development or community development purpose.

The most accessible niche/special financing programs on Long Island are:

1. NYS Targeted Industry Revolving Loan Fund (Targeted RLF). This is a fund created by the US Dept.of Commerce (Economic Development Administration) and Empire State Development (NYS) to help targeted industries thrive on Long Island.What are those industries? They are industries which can co exist with our high land prices, utility rates, our fragile ecosystem, and which pay good wages so employees can afford to live on Long Island.Industries included in those targeted are: defense dependent manufacturers still seeking to diversify; bio medical; high end electronics; pharmaceutical; software development; computer graphics; and commercial fisheries and related industries. The fund provides up to $250,000 in funding (which can be used for capital assets or working capital) and requires the applicant to go through a free or subsidized self improvement process. Significant utility abatements are tied to the program for manufacturing recipients. And the fund provides loans for long terms at a low fixed rate. Oftentimes, the Targeted RLF provides funding in combination with a bank or other lender and the RLF usually takes a subordinate lien position to make the deal happen.

2. HUD 108 or Microenterprise Loan Funds. These are funds funneled to communities from the federal Housing & Urban Development Agency through Local Community Development Agencies. They can be used for any business purpose. The Town of North Hempstead offers the North Hempstead Revolving Loan Fund (No.Hempstead RLF) which provides up to $130,000 for small businesses in eligible areas of the town. The Town of Hempstead offers the Hempstead Small Business Loan Fund (Hempstead RLF) which provides up to $50,000 in unincorporated areas of the town.The County of Suffolk offers the Suffolk County Revolving Loan Fund (Suffolk RLF) which provides up to $150,000 to qualified small businesses anywhere in Suffolk except Huntington, Islip and Babylon. In some cases, the small business owner's family income must meet federal income guidelines. In other cases, the small business must be in or willing to locate in a specific geographic area.Rates are low and terms are generous.

3. Long Island Small Business Assistance Corp.(LISBAC).LISBAC provides small loans (up to $10,000) to women owned businesses tied to free individual technical assistance and free seminars. LISBAC is funded by Citibank and NYS (Empire State Development). Its loans are long term and low cost.

4. Facade Improvement Loans/Grants. For this first time in this article we have used the term "grants." While late night TV may tout grants and free money from the government, most small businesses will never have the opportunity to find that-except for the facade improvement program. It is a federal program administered by local community development agencies (CDA's) designed to help unify downtown areas with improved building facades. The CDA's make both grants and loans to help building owners in this effort and they are limited to eligible areas being revitalized.

5. Utility Abatements. Both LIPA and Keyspan offer incentives to small businesses to increase utility load and expand as well as to conserve energy. These range from free audits of your building's energy systems to significant abatements for heavy users and incentives to upgrade and modernize equipment.

Most of the loan programs cited herein are available to both existing and start up businesses, although requirements may differ. If you own a small business and need funding, talk first to your bank. If your banker can't provide all the help you need, ask him/her to consider supplementing the bank loan with one of these niche/special financing programs.