Well-it's a new year- full of opportunities for your business- to regroup, become more efficient, expand and grow. Sounds great- until you look in the company check book and realize you barely have enough money to get through the next payroll and certainly not enough to reorganize or grow your business. Do not despair. This month's column is a review of sources of financing for your small business, including some fairly new resources:
I. Capital Asset Acquisition/Renovation- buildings/machinery

A. IDA (Industrial Development Agency) bonds or straight lease backs- for the stronger credits, larger projects. Up to 100% financing provided by a bond purchased by your bank or other entity or syndicated. Brings some real property tax, mortgage tax, sales tax abatements. Abatements can also be provided without bond issuance through straight lease back transactions. For manufacturers, wholesale, not for profits, civic projects. Available through local IDA.
B. NYJDA (Job Development Authority) second mortgage loans up to 40% of project for manufacturers, wholesale, some service (no retail). Taxable and tax exempt bonds are source of funding. Job creation required. Long term. Fixed and variable rates. Available through Empire State Development (NYS).
C. SBA 504 (US Small Business Administration) second mortgage loans up to 40% of total project cost for manufacturers, wholesale, service, professional service, retail. Long term low fixed rate loans for economic development. Up to $4 million. Available from Long Island Development Corporation.
D. LIFSD (LI Fund for Sustainable Development)-low interest funding in low-moderate income communities for projects which will positively impact economy, environment and advance social equity. For profit entities and not for profit projects eligible. Available through Sustainable LI.

II. Working Capital

A. SBA 7A - loans from banks and other lenders who get a partial guarantee from SBA. Up to 10 years, long term up to $2 million. Lesser amounts available on expedited process. Talk to your local banker or SBA.
B. LI Targeted Industry Revolving Loan Fund- a NYS fund which provides up to $250,000 to defense dependent manufacturers seeking to diversify, bio medical, pharmaceutical, high end electronics, computer graphics, software development, special community projects, commercial fishermen. Long term, low fixed rate, generally subordinate. Available from LI Development Corporation.
C. SBA Micro loan fund- up to $35,000 for small business. Available from CDCLI. (Also has mezzanine fund for higher amounts_.
D. LI Small Business Assistance Corp. (LISBAC)- loans up to $10,000 for women owned businesses.
E. Town of Hempstead Loan Fund- up to $50,000 for businesses in unincorporated areas of town.
F. Village of Hempstead Loan Fund- up to $10,000 for businesses in Village.
G. NYS Minority & Women Revolving Loan Fund- up to $35,000 for minority or women owned businesses in targeted areas. Operated by LI Fund for Sustainable Development.

III. Special Sources of Funding

A. Linked Deposit- NYS provides interest rate subsidies on bank loans. From ESD.
B. Industrial Effectiveness Program (IEP)-NYS pays half the cost of a consultant to help your business become more efficient (manufacturers only)(comes with LIPA abatements).
C. Keyspan- subsidized loans on gas efficiency equipment.
D. Free counseling: to find and obtain government contracts- from LI Procurement Technical Assistance Center (LIDC); to create and update your business plans - from Small Business Development Centers (SBDC's) at Farmingdale and Stonybrook; entrepreneurial workshops - from Black Women Enterprises (BWE); entrepreneurial courses from Hofstra Business Development Center and Suffolk Community College Technicenter; mentoring and business counseling from members of SCORE (Service Corps. Of Retired Executives).

At this point, your head is probably spinning. You're asking- where do I start- what program is for me? The first step is to talk with your bank of account to see if it has a product suitable for your needs. Generally, your banker will bring in one or more of these programs as a substitute or supplement for the bank financing. Local departments of economic development or your chamber of commerce can point you in the right direction. Alternatively, call Long Island Development Corporation, LI's premier small business lender for a contact and phone number on any of these funding sources. (516) 433-5000; biz-loans@lidc.org. And remember, somewhere out there is a source of financing to help you and your business be successful on Long Island.