JCIDA Microenterprise Revolving Loan Fund

Call 315/782-5865 or 800/553-4111

The purpose of the Jefferson County Industrial Development Agency's Microenterprise Revolving Loan Fund is to establish and create job opportunities in small businesses in all sectors of the local economy. The Program provides equal access to public loan funds and stimulates small business development activity, through start-up and expansion projects. The program targets businesses which create and retain job opportunities, for low to moderate income residents. Types of eligible businesses will include manufacturing, retail, service, tourism, and agriculture.

Loan proceeds shall be used by the borrower for the acquisition of machinery and equipment, working capital, furniture, fixtures, and real property. Loan can be up to $40,000 (including any amounts provided for technical assistance), and will not exceed 40% of total project costs, which ever is less. Multiple loans can be made with a maximum aggregate amount not to exceed $120,000. Generally, interest rates range from prime minus one percent to prime plus two percent. Rates determined on a project specific basis. The term of the loan shall not exceed twelve (12) years.

The Microenterprise RLF is administered by the Jefferson County Job Development Corporation. The JCJDC strongly encourages applicants to obtain the assistance of the Jefferson Community College Small Business Development Center.

Eligibility Criteria

1. Business having five (5) or fewer employees and must include the owner as an employee.
2. Equity participation of at least 10% of the total project costs.
3. Microenterprise business owners must be income-eligible or pledge to create jobs that will be held by income eligible individuals.

Completed and reviewed applications (click here to download) are due the first day of the month and are reviewed by the board on the first Thursday of the following month.

JCIDA Revolving Loan Fund

Call 315/782-5865 or 800/553-4111 or Email

The Jefferson County Industrial Development Agency/Revolving Loan Fund (RLF) is a financing program targeted at manufacturing businesses located within Jefferson County. The fund is administered by the Jefferson County Job Development Corporation.

Eligibility Criteria

1. Loans generally range from $25,000 - $250,000 or 40% of total project costs, whichever is less. Multiple loans can be made with a maximum aggregate amount not to exceed $500,000.
2. Generally, interest rates range from prime minus one percent to prime plus two percent. Rates and terms determined on a project specific basis.
3. Businesses located within the Watertown Empire Zone may be eligible for a deferred interest program in regard to the JCIDA/RLF.

Completed and reviewed applications (click here to download) are due the first day of the month, and are reviewed by the board on the first Thursday of the following month.

JCIDA Financial Application

The JCIDA can also help businesses access other finanacial resources - all with a single contact. Download our financial application (click here to download) in Adobe Acrobat format to learn more.

Industrial Revenue Bonds

A primary way the Jefferson County IDA promotes economic growth is through the issuance of tax exempt or taxable industrial revenue bonds for businesses that either wish to locate or expand their operations in Jefferson County. This financing offers the following advantages:

• Competitive interest rates
• Versatile financing in that the IDA may finance up to 100% of a project or may be combined with equity, conventional financing, or public financing to create a well-rounded financial package.
• Cost effective for borrowers seeking financing for projects $1,500,000 and larger.
• This program is available via application (click here to download) to the Industrial Development Agency.

How the process works:

The IDA issues the bond but it does not actually loan the money directly to a company. Rather, a financial institution loans the funds to an applicant, through the IDA. Typically, a bank or an underwriter will purchase the bonds and in effect, make the loan. It is the responsibility of the company to discuss with lending institutions their interest in purchasing the Agency's bonds to finance a project. The IDA fee ranges from 0.5% to 1% of the face value of the bond.

The lending institution reviews the project and makes the credit decision as to whether or not to purchase the bonds. In addition, the company and financial institution negotiate the terms and conditions of the loan (it's length, interest rate, etc.) independently of the IDA. The bonds are secured by the financial strength and credit of the applicant. Normally, the loan is secured by a mortgage on the facility financed with the bonds. However, additional guarantees and collateral may be required by the lending institution similar to what may be the case in a conventional financing. Therefore, IDA approval of a project does not automatically result in funding being available. The applicant is responsible for the repayment of the bonds. Neither the agency, the county, nor the state guarantee any such indebtedness.

Tax-exempt bonds are regulated by federal tax law. The interest income on taxable bonds is exempt from State income tax only. In addition to the reduced interest rate on the bonds, and the IDA financed project is exempt from paying sales tax, mortgage recording tax, and is eligible for property tax abatements.

The following table summarizes further the differences between taxable and tax exempt issues:

Other Economic Development Organizations

• Council for International Trade, Technology, Education and Communication, Inc. (CI-TECH)
• Empire State Development
• North Country Alliance (NCA)
• New York State Small Business Development Center
• Watertown Local Development Corporation

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