New Loan Program to Help New York State Small Agribusinesses Expand and Grow

Through the Agriculture Loan Fund Program, eight participating lenders will loan between $50,000 and $200,000 to eligible businesses. Qualified businesses include, but are not limited to, value-added processors, food distribution companies, food aggregators, craft beverage producers, and Food Hub participants. The projects may include the acquisition of and/or improvements to land or buildings, the purchase of machinery and equipment, and working capital used in support of the New York State agricultural industry.

ESD President, CEO & Commissioner Howard Zemsky said, “Small businesses are central to the New York State economy and they employ more than half of New York’s private sector workforce. This new loan program will support projects that are designed to help small agribusinesses grow and expand their operations while creating and retaining jobs in New York.”

State Agriculture Commissioner Richard Ball said, “We have so many talented small business owners driving an agricultural renaissance in New York with their incredible and innovative products. We’ve been proud to promote their hard work and boost sales of more than 1,100 local companies through our Taste NY marketing program. Now, with this new loan fund, those companies have an additional resource to help take their businesses to the next level, further supporting economic growth and job creation across the State.”

Approved lenders include:

Statewide

·         New York Business Development Corporation

Western New York

·         Southern Tier Enterprise Development Organization, Inc.

Finger Lakes

·         Pathstone Enterprise Development Corporation

Southern Tier

·         Delaware County Local Development Corporation

·         REDEC Relending Corporation

Mid-Hudson

·         Hudson Valley AgriBusiness Development Corporation

Mohawk Valley

·         Mohawk Valley Rehabilitation Corporation

North Country

·         Development Authority of the North Country

Applicants should contact lenders directly. To find out more about the JDA Agriculture Loan Program, call 212-803-3219.

Michelle Capone, Director of Regional Development, Development Authority of the North Country said, “The Development Authority of the North Country recognized the economic importance of agribusinesses in the North Country and is committed to growing the industry in Jefferson, Lewis, and St. Lawrence Counties. We look forward to working with JDA and New York State on this new initiative.”

Patrick MacKrell, CEO, New York Business Development Corporation said, “Participating in the Agricultural Loan Fund will allow us to deepen our support of agribusinesses in New York State. We are excited to participate in this new fund to better serve these businesses—which include wineries, breweries, distribution companies and more—as they work to create jobs and economic opportunity where they operate.”

Hubert Van Tol, President, Pathstone Enterprise Center said, “We appreciate Empire State Development making this very flexible loan money available to Pathstone Enterprise Center as we work to help the small agricultural related businesses that are having trouble getting affordable loans elsewhere.”

Richard Zink, Administrator, Southern Tier Enterprise Development Organization said, “For the last 30+ years, the Southern Tier Enterprise Development Organization, Inc. has assisted small business owners in western New York with the necessary funding to grow and sustain their businesses. The JDA Agribusiness Loan Fund will provide another resource to support agricultural enterprises as they seek to expand their business.  STEDO is grateful for the opportunity to partner with JDA and New York State on this new funding initiative.”

The JDA Agriculture Loan Program builds on New York State’s continued effort to grow and support the agricultural industry. ESD, in coordination with the NYS Department of Agriculture and Markets, administers the New Farmer Grant Fund, which has provided $2.5 million to more than 65 farms across the State since its launch in 2014 to assist new and early-stage farmers. ESD also recently launched the New York State Veterans Farmer Grant Fund to support farms owned and operated by military veterans interested in pursuing agriculture as a second career. In addition, the Department of Agriculture and Market’s Taste NY and NYS Grown & Certified programs promote the State’s growers, producers and food and beverage businesses and help connect them to new markets. The Taste NY program specifically has created opportunities for local producers to showcase their goods and has also helped the farms and companies to reach more customers, increase online sales, and, in many cases, expand the processing capacity of their business.

About ESD’s Division of Small Business

Empire State Development’s Division of Small Business and Technology Development directs a wide array of programs and initiatives to support small business growth and to help entrepreneurs maximize their opportunities for success. Small businesses – of up to 100 employees – make up 98 percent of all businesses in New York State. The Division supports small businesses by providing and implementing: access to capital, through partnerships with financial institutions, alternative lenders, direct lending and financial assistance programs; training and technical assistance that incentivize businesses to launch, grow and innovate; and access to information and resources, including industry-university partnerships through which businesses can develop and commercialize promising new products and technologies.

About the NYS Department of Agriculture and Markets

The Department, through its various divisions and programs, promotes New York agriculture and its high-quality and diverse products, fosters agricultural environmental stewardship, and safeguards the State’s food supply, land and livestock to ensure the viability and growth of New York’s agriculture industries. The Department’s Land and Water Division works to protect New York’s land and water resources through farmland protection, farmland conservation, and proactive environmental stewardship.

The Department operates the Great New York State Fair, and administers the Taste NY initiative, the FreshConnect and New York State Grown and Certified programs. Follow the Department on Facebook, Twitter, and Instagram.