What is the North Hempstead Economic Development Loan Program?

The goal of the North Hempstead Economic Development Loan Program is to stimulate economic growth and encourage the development of businesses that will provide job opportunities to low- and moderate-income residents of the Town of North Hempstead.

What businesses are eligible for North Hempstead Loan Program assistance?  What businesses are ineligible for assistance?

Businesses currently located in or planning to locate to the unincorporated areas of the Town of North Hempstead (such as New Cassel, Albertson, Port Washington, Manhasset, and other areas that are not within incorporated villages) may be eligible for financial assistance.  However, businesses primarily engaged in the sale of alcohol, pornography, or "adult materials" are ineligible for funding.

What types of expenditures can be funded through the North Hempstead Loan Program?  What types of expenditures are prohibited?

Funds may be used to finance the construction or rehabilitation of buildings or other site improvements, the acquisition of machinery and equipment, leasehold improvements, and the purchase of inventory.

Funds cannot be used for debt refinancing.

What are the terms and conditions of North Hempstead Loan Program assistance?

Subject to the Agency's determination of the relative community benefit to be achieved through the proposed project, the following terms and conditions apply:

Maximum Loan Amount  -  $100,000.  Projects along Prospect Avenue in New Cassel between Brush Hollow Road and Union Avenue may be able to obtain an additional $30,000 in financial assistance from the Prospect Avenue Small Business Loan Program (see details below).

Interest Rate – 7% per year

Term –  Based upon the life of the asset being financed.  Examples include up to 1 year for inventory, 3-7 years for machinery and equipment, the term of the leasehold for leasehold improvements, and 25 years for construction or rehabilitation of buildings or other site improvements.

Minimum Equity Investment  –  10% of the total project cost

Collateral  –  A security interest must be given in collateral with a value equal to or greater than the amount of the loan.

Community Benefit Requirements  –  Financial assistance must result in the creation or retention of one job for every $35,000 in financial assistance provided, with no fewer than 51% of those jobs filled by or available to low- and moderate-income persons (check with Agency representatives for details).   Job retention must be supported with adequate evidence that the jobs would be lost if the financing was not provided.

Priority is given to funding projects that create employment opportunities for low- and moderate-income persons that offer good wages and benefits, job training, and opportunities for advancement.

Closing Costs – If approved for financing, the borrower will be responsible for paying costs associated with the closing, including the filing of UCC financing statements, title insurance, and all risk insurance.

How does a business apply for North Hempstead Loan Program funding?  How is the application processed?

Business owners interested in exploring Loan Program assistance should arrange an appointment with an Agency loan officer.  The applicant should be prepared with a description of the proposed project, its cost, and proposed sources of financing.

If the Agency loan officer preliminarily determines that the project is eligible for financial assistance, the business owner should prepare and submit to the Agency a Business Loan Application on a form provided by the Agency representative.  The application should be accompanied by a non-refundable application fee equal to $100 or 1% of the loan amount requested, whichever is greater, to cover the cost of obtaining credit reports and other administrative expenses.

The Agency's Loan Committee will review satisfactorily completed applications, and will make a recommendation regarding the proposed loan to the Agency's board.

How can I learn more about the North Hempstead Economic Development Loan Program?

To find out more about the North Hempstead Economic Development Loan Program, you can call or write to the Town of North Hempstead Community Development Agency as follows:

            North Hempstead Economic Development Loan Program

            Town of North Hempstead Community Development Agency

            51 Orchard Street

            Roslyn Heights, New York  11577      
            (516) 869-7670 
            (516) 626-3953 (fax)

            allenp@northhempstead.com