This program provides Direct Loans for the growth of manufacturing and other eligible businesses within New York State by assisting in financing a portion of the cost of acquiring and renovating existing buildings or constructing new buildings (“Real Estate” projects) or for purchasing machinery and equipment (“M&E” projects). Funds to make Loans are derived from the sale of State-guaranteed bonds. * Program Highlights - In most cases, JDA Loans can be for up to 40% of the total project cost of Real Estate projects or M&E projects. - Loans may be up to 60% for projects located in Empire Zones or economically distressed area. - The combination of a bank loan and a JDA Loan allows up to 90% financing of a project. - Typical financing structure: 50% Bank Loan 40% JDA Loan 10% Borrower Equity - A JDA Real Estate Loan is normally a second mortgage loan, subordinate to a first-mortgage loan provided by a bank; M&E Loans are secured by a first lien, co-equal with the bank’s lien, on the M&E being financed. - Real Estate project costs include the cost of an existing building and renovations, purchase of land and construction of a new building and soft costs normally associated with a real estate transaction. - M&E project costs include the cost of the machinery and its delivery, installation costs solely attributable to the machinery being purchased and soft costs related to the M&E acquisition.