Linked Deposit Program (LDP)

Program Purpose

This program helps existing New York State firms obtain reduced-rate financing so they can undertake projects to improve their competitiveness, market access and product development; modernize their equipment and or expand their facilities for productivity growth or to introduce new technologies; to facilitate ownership transition; and to promote job creation retention.
 
It is offered as a public-private partnership that provides businesses with affordable capital based on bank loans at reduced interest rates. These bank loans are subsidized by corresponding "linked" state deposits.

Program Highlights

The program provides up to a two to three percentage point savings on the prevailing interest rate for "Linked Loans," to make borrowing less expensive with a maximum loan amount of $2 million for four years.

 2% interest rate reduction for:

  • Manufacturers with 500 or fewer full-time employees in New York State

  • Service firms with 100 or fewer full-time employees in New York State that are independently owned and operated and not dominant in their field

3% interest rate reduction for:

  • Agricultural businesses with 500 or fewer full-time employees in NYS that need financing to expand or improve agricultural operations

  • Qualifying technology and innovation businesses with 100 or fewer full-time employees in New York State

  • Empire Zone certified business with 100 or fewer full-time employees in New York State

  • Businesses in highly distressed census tracts with 100 or fewer full-time employees

  • Certified Minority- or Women-Owned Business Enterprises (MWBEs) that need financing to fulfill a New York State or federal procurement contract

  • Defense industry manufacturers with at least 25 percent of gross revenue derived from defense contracts or subcontracts, investing to reduce dependence on the defense industry by diversifying production to non-military markets

2013 Legislative Change

The Governor and NYS Legislature recently amended legislation that allows technology and innovation businesses with 100 or fewer full-time NYS-based employees to qualify for the 3% interest rate subsidy.  Included are businesses engaged in biotechnologies, information and communication technologies, advanced materials and processing technologies, electronic and photonic devices and components, energy efficiency, renewable energy and environmental technologies, or small scale systems integration and packaging.

2012 Legislative Change

The Governor and NYS Legislature amended legislation that allows agricultural firms (as defined in subdivision two of section 301 in the Agriculture & Markets Law) to qualify for the 3% interest rate subsidy when undertaking projects that will expand or improve agricultural operations and create or retain full-time permanent jobs within New York State.

2011 Legislative Changes

1. The Governor and NYS Legislature amended legislation that increases the LDP lifetime maximum per eligible business from $1 million to $2 million.
2. The second change allows borrowers to apply for a four-year renewal/extension on an existing four-year LDP loan, thereby increasing the total term of assistance on certain loans to eight years.


Program Limits

§  An eligible business can now have an unlimited number of LDP loans outstanding, totaling $2 million.
§  The single deposit limit has been increased to $2 million; there is no minimum deposit.
§  Total lifetime assistance (including renewals and prior deposits) cannot exceed the legislated lifetime maximum of $2 million.

Not Eligible

§  Personal and professional service businesses not located in a Highly Distressed Area or Empire Zone
§  Start-up businesses
§  Retail businesses not located in a Highly Distressed Area or Empire Zone

Application Process

Businesses apply at a participating commercial bank, savings bank, savings and loan association, farm credit institution with which it does business or the New York Business Development Corporation.  The lender makes the credit decision and, if the applicant is eligible, sends the application to ESD for approval on behalf of the business. The Linked Deposit Program application is available below.  

Contact Information

For more information on New York State's Linked Deposit program, contact the LDP office via email or call us at (518) 292-5261. 

Additional Resources

§  Linked Deposit Program Application
§
 
LDP Quick Sheet
§
 
Frequently Asked Questions
§
 
List of Participating Lenders
§
Linked Deposit 2014 Annual Report
§
 
Linked Deposit 2013 Annual Report
§  Linked Deposit 2012 Annual Report
§  Linked Deposit 2011 Annual Report
§  Linked Deposit 2010 Annual Report
§ 
Linked Deposit 2009 Annual Report