SZCC is a privately-owned loan fund whose capital is available to promote the expansion and growth of businesses in New York's 51 participating Empire Zones. Empire Zones are areas targeted by New York State for economic development. Financing will be made available for both existing and new businesses.

Operations of SZCC are managed by New York Business Development Corporation. SZCC is intended to complement conventional bank financing by partnering with banks to provide credit to businesses, many of which do not meet the requirements for traditional financing.

Benefits of SZCC Financing
-Below-market interest rates
-Minimum down payment requirements.
-Flexible repayment terms

Gap financing
Working capital, equipment and real estate financing.

Dollar Amount
Loans range from $30,000 to $300,000.  Bank or other lender participations are desired.

Minimum Down Payment
Zone Certified Businesses will be asked to provide a 10 percent equity contribution.

Interest Rates
Below market fixed interest rates are available.

Collateral
Collateral will be sought to secure all SZCC financing.  Acceptable security includes real estate mortgages (business or personal); liens on business assets; other corporate and/or personal guarantees; and assignment of life insurance policies. 

Fees
A non-refundable application fee of $250 is to accompany each application upon submission to SZCC.  Origination fees may be assessed where applicable.

Maturities
Maturities range from 3 to 15 years.  Factors considered in establishing a maturity are the repayment ability of the Zone Certified Business and the useful life of the collateral.
 

The SZCC Application Process:

Step 1: A business needing financing must be located in or planning to locate in one of the 51 participating Empire Zones.

Step 2: A business must obtain zone certification from Empire State Development and be qualified as eligible to apply to SZCC for financing by the local zone administrative board. Certification and qualification are based on job creation and/or retention, capital investment in the zone or an ability to meet other economic development goals of the individual zone.

Step 3: A business must provide a credit application to SZCC and the participating lender.  Our Loan Application Checklist outlines the information needed to review your loan request.

Step 4: NYBDC underwrites SZCC's portion of the credit application. NYBDC's Regional Loan Committee and SZCC's Investment Committee vote concurrently on the credit application. With approval from the participating lender, a closing is scheduled.