Despite the credit crisis, The Greater New York Development Co. (GNYDC) and Long Island Development Corp. (LIDC) prove that there is hope for small businesses and non-profit entities to realize their dreams of facility ownership. Through the GNYDC/LIDC family, funding is available that will aid companies in their growth and expansion.
GNYDC/LIDC is a family of not-for-profit economic development organizations that provide low cost, low down payment loans and free technical assistance to entrepreneurs and non-profits. Providing such support for 30 years, the GNYDC/LIDC staff is well versed in providing second mortgages, behind banks and other lenders, for small businesses and not-for-profits acquiring, renovating or constructing their own facilities throughout New York, New Jersey and Connecticut.
By providing the resources for companies to grow, the company stimulates the economy by creating and sustaining jobs. Chief among its resources, is the SBA 504 Small Business Loan Program. GNYDC/LIDC is actually the oldest SBA 504 development company in the nation and is nationally known for its expertise in the program. Together with conventional, including bank, financing, GNYDC/LIDC uses the SBA 504 loan to provide long term (20 year) fixed rate funding of up to 90% of total project cost. A conventional lender lends 50 percent in a first mortgage position.
GNYDC/LIDC then provides its SBA 504 direct loan of 40 percent in a second mortgage position behind the conventional lender. There is a long list of banks and other lenders ready, willing and able to lend the 50 percent position. GNYDC/LIDC’s supply of the SBA 504 40 percent share is unlimited. Staffers say that the best part for the business buyer is that it puts in just 10 percent of the project cost, thus preserving cash for working capital needs.
A recent recipient of an SBA 504 second mortgage loan from GNYDC/LIDC was the Law Offices of Joe Zhenghong Zhou and Associates, PLLC. GNYDC/LIDC helped provide the financing for the law office to renovate and build a new commercial condominium. As a result, the firm was able to expand its business and increase the staff. The new professional condo is located at 136-20 38th Avenue in Flushing.
GNYDC/LIDC is also active in providing assistance to non-profit organizations. “We have a wonderful program to help nonprofits get funding to purchase, renovate or refinance commercial real estate,” says Don DiMartini, VP Lending/Director Economic Development for GNYDC/LIDC. Non-profits can receive low cost, favorable financing to purchase or refinance their facilities through the New Market Loan Fund where GNYDC/LIDC acts as an exclusive intermediary for the nationally renowned Community Reinvestment Fund. Financing for this program derives from a variety of sources including federal tax credits and national banks.
In some cases, the New Market Loan can fund the entire project. Typically, GNYDC/LIDC is providing 40 percent of the project cost as a second mortgage loan to a bank or other lender. With below prime interest rates, the funds can be used to purchase, construct or renovate buildings, including commercial condos and co-ops, refinance existing mortgages or use equity in existing facilities for operations.
One organization that saw firsthand the benefits of a New Market Loan was Gateway Youth Outreach Inc., located at 534 Elmont Road in Elmont. Gateway Youth Outreach serves the children of Elmont and nearby communities with counseling, education and recreation. It promotes a safe environment for adolescents to develop their talents in healthy, productive ways. In order for the Gateway Youth Outreach to operate effectively, it needed a new facility. GNYDC/LIDC provided low cost financing for a new building under DiMartini’s guidance.
GNYDC/LIDC has made almost $1 billion in direct SBA 504 and other loans with an additional $2.5 billion of capital investment being leveraged for the benefit of the tri-state community. GNYDC/LIDC’s loans have helped to create or retain over 45,000 jobs. In addition to its flagship commercial mortgage loan programs GNYDC/LIDC operates a variety of local business loan programs for targeted communities.
GNYDC/LIDC is led by founder and President/CEO Roslyn Goldmacher who brings expertise to the company as an attorney and licensed real estate broker as well as extensive experience in the SBA lending industry. Goldmacher serves on the boards of directors of a number of national, regional and local organizations, including the national fiscal agent for the SBA 504 loan program.
Working under Goldmacher’s guidance, GNYDC/LIDC has a professionally trained and experienced staff made up of former commercial lenders, government contracting specialists and others to serve the tri state area’s businesses and non-profits. The company’s board of directors includes prominent business people, lenders, educators, representatives of labor, management, utilities, government and education, along with community organizations.
“Our company is unique in that, not only do we make low cost loans, but we also provide small business owners with other resources, including free counseling on how to obtain government and other contracts,” says Doris Mellina, Business Development Officer for GNYDC/LIDC. Mellina is an active member of the Queens Community, currently president of the LaGuardia Kiwanis Club. Says Mellina, “ the Government and Private Sector Contracting Assistance Program (GAPSCAP) of GNYDC/LIDC provides counseling on how to obtain and perform on government and private sector contracts. Over the years, this program has brought over $1.75 billion in contracts to small businesses.” One company, C&S Building Supply, credits GNYDC/LIDC with helping them secure $7.8 million in federal and state contracts, which included the mechanical operations and engineering contracts for the Ellis Island Interpretive Museum at the Statue of Liberty.
GNYDC/LIDC works with numerous local banks and other lenders as partners to provide complete financing packages for businesses and non-profits to acquire, renovate and refinance their homes. Every borrower also gets the benefit of other GNYDC/LIDC programs including expansion with contracts, access to utility abatements, etc. GNYDC/LIDC Vice Chairman Phyllis Hill Slater said, “GNYDC/LIDC is a wonderful economic development/community development resource in our region, providing favorable loans and numerous resources for our business and non-profit community.”
The corporate headquarters of GNYDC/LIDC is located in Bethpage but they have offices in Manhattan, Brooklyn and other areas of the region as well. Personnel are fluent in multiple languages. And, GNYDC/LIDC works with every government and private sector development resource to make sure borrowers receive all the benefits necessary to make their projects successful. To learn more about taking the next step toward expanding your business or non-profit organization, call GNYDC/LIDC at 866-433-5432 or visit them on the web at www.gnydc.org.
