Issues and events that shape Long Island's economic and legislative landscape.

Thursday, September 29, 2016

New York Job Development Authority (JDA) Loan Program

What is the New York Job Development Authority (JDA)?

The JDA 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).

How much can JDA lend to my business?

In most cases, JDA Loans can lend up to 40% of the total project cost of Real Estate or M&E projects. JDA can take a second position on real estate loans. Loans can be made for up to 60% for those projects located in Empire Zones or economically distressed areas. The combination of a bank loan and a JDA Loan allows up to 90% financing of a project. Loans can be from $50,000 - $3,500,000.

Example of financing structure:

  • 50% Bank Loan
  • 40% JDA Loan
  • 10% Borrower Equity

Projects eligible for financing:

  • Financing may be used for acquisition of land, structures, machinery and equipment.
  • Loans for real estate acquisitions, construction or renovations are secured by a second lien on the property.
  • Machinery and equipment loans are financed with a proportionately co-equal first lien with the other lender.
  • Eligible facilities are those to be used for manufacturing, distribution, warehousing and certain other businesses; retail operations are not eligible.


  • The Borrower must secure a letter of commitment from the bank providing the 50% financing portion of the project cost.
  • The Borrower must provide at least 10% of the project cost as an equity contribution to the project.
  • Personal guarantees are required from any person owning 20% or more of the Operating Company for whose benefit the JDA Loan is being made.
  • Loan recipients must agree to projectspecific loan goals.

For more information on how to contact your ESD regional office click here