Application timelines vary by loan complexity. Our business services team will guide you through the process and provide estimated timelines during your consultation.

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Important: Applications must be submitted and approved by the State before your loan closes with us.  

The state deposits funds with ConnectOne Bank at below-market rates, allowing us to offer you reduced interest rates on your business loan while maintaining competitive terms.

• Lifetime Maximum: An eligible business can receive up to $6 million in total lifetime LDP assistance.  
• Project Maximum: Businesses can borrow up to $4 million for each individual project.
• No Minimum: There is no minimum loan amount required to participate.  
• Loan Terms: To qualify, the loan term must be at least four years, and the rate must be fixed (no lines of credit or variable rates).

Loan amounts vary based on your business needs and creditworthiness. Our business lending team will work with you to determine the appropriate financing amount.

Who Qualifies?

To be eligible, your business must be headquartered in New York State. Depending on your business type and location, you may qualify for standard or maximum rate reductions:  

Standard Eligibility

• Manufacturing Firms with 500 or fewer full-time NYS-based employees.  
• Service Businesses that are independently owned, not dominant in their field, and have 100 or fewer full-time NYS-based employees.  
• Community Development Financial Institutions (CDFIs).  

Enhanced Eligibility

• Technology or Innovation Businesses with 100 or fewer full-time NYS-based employees.  
• Agricultural Firms with 500 or fewer full-time NYS-based employees.  
• Certified Minority or Women-Owned Businesses (MWBEs) & Service-Disabled Veteran-Owned Businesses securing financing for a government procurement contract.  
• Businesses in Highly Distressed Areas with 100 or fewer full-time NYS-based employees.  
• Defense Industry Manufacturers seeking to diversify production into non-military markets (25% of gross revenues derived from defense contracts/subcontracts)

Please Note: Start-ups, companies headquartered outside NYS, and not-for-profits are generally ineligible. Professional, personal service, and retail businesses are also excluded unless they employ 100 or fewer people and are located in a highly distressed census tract.  

Yes. Upon full maturity of the 4-year deposit, a borrower can request a 4-year extension if they have lifetime eligibility remaining, met their original goals, and will create additional jobs, industrial modernization benefits, or export trade benefits.

The applicant (borrower) applies for the loan through a participating lender. The lender then completes and sends the application to the Linked Deposit Program. The application is approved or rejected within 28 days (average approval time is 5 business days).

Please note, loan amounts vary based on your business needs and creditworthiness. Our business lending team will work with you to determine the appropriate financing amount.

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Eligible firms and projects are categorized by the interest rate subsidy they qualify for:

Eligible Firms Qualified for a 2% Interest Rate Subsidy

• Manufacturing Firms: 500 or fewer full-time NYS-based employees.
• Service Businesses: Independently owned and operated, 100 or fewer full-time NYS-based employees, not dominant in its field, and the project must result in the retention or creation of permanent private-sector jobs within the state.
• Community Development Financial Institutions (CDFIs)

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Not Eligible: Businesses providing personal services (e.g., daycares, funeral homes), professional services (e.g., health, legal, accounting, engineering, educational), or retail services (e.g., restaurants, entertainment, grocery stores) UNLESS they employ 100 or fewer in NYS and fall into a 3% qualifying category. Pre-start-up businesses (no sales/employment) and companies headquartered outside NYS are also not eligible.

Eligible Projects for a 2% Subsidy

• Preparation of strategic plans for improving productivity and competitiveness.
• Introduction of modern equipment and/or purchase or expansion of facilities as part of a modernization plan.
• Introduction of advanced technologies to improve productivity and quality.
• Improvements in production processes and operations.
• Introduction of computerized information, reporting, and control systems.
• Reorganization or improvement of workplace systems; introduction of total quality and employee participation programs.
• Development and introduction of new products.
• Identification and development of new markets, including entry into foreign markets.
• Buyouts of viable companies by employees or local owners residing in NYS.
• Provision of working capital for modernization activities that improve competitiveness/productivity and result in job creation/retention.
• CDFIs lending to small businesses.

Eligible Firms & Projects Qualified for a 3% Interest Rate Subsidy

• Certified MWBEs / Service-Disabled Veteran-Owned Businesses (SDVOBs): Financing to carry out a procurement contract with a State or Federal agency/authority. (Note: Non-contract related projects for certified firms qualify for the 2% reduction).
• Highly Distressed Areas: Businesses with 100 or fewer full-time NYS-based employees. Projects must create or retain permanent jobs in a Highly Distressed Area. (Retail must show preservation or an increase of overall retail jobs in the area).
• Agricultural Firms: 500 or fewer full-time NYS-based employees. Projects must expand or improve agricultural operations and create/retain permanent jobs in NYS.
• Technology or Innovation Businesses: 100 or fewer full-time NYS-based employees engaged in biotechnologies, information/communication tech, advanced materials, photonics, energy efficiency, renewable energy, or small-scale systems integration.
• Defense Industry Manufacturers: Firms deriving 25% of gross revenues from defense contracts. Projects must reduce dependence on military contracts or diversify production into non-military markets.

Loan amounts vary based on your business needs and creditworthiness. Our business lending team will work with you to determine the appropriate financing amount.

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