SEDCO is accepting applications
on a rolling basis
What loans are available?
. |
Micro-Enterprise Fund |
Small Business Assistance Fund |
Community Impact Fund |
Applicant Criteria |
|
|
Business or Development Entity making capital investment resulting in renovation or other physical real estate improvements |
Maximum Loan Size |
$5,000 |
$25,000 |
$200,000 |
Interest Rate |
2.0% |
3-5% |
3-5% |
Term |
2 Years |
5 Years |
Up to 15 years |
Forgivable? |
Yes |
No* ** |
No |
*The whole Northside has experienced economic hardship
**The whole Northside is full of eligible ARPA census tracts (yay...)
***If you qualify for a "Micro-Enterprise loan", when you apply for a "Small Business Assistance Fund" loan, you can request that $5,000 of the loan be forgiven if spent on qualifying expenses.
**The whole Northside is full of eligible ARPA census tracts (yay...)
***If you qualify for a "Micro-Enterprise loan", when you apply for a "Small Business Assistance Fund" loan, you can request that $5,000 of the loan be forgiven if spent on qualifying expenses.
Eligibility Criteria
- Small Business (fewer than 50 or fewer employees with additional options for businesses with 10 or fewer employees)
- Business is physically located in the City of Syracuse
- Business has been negatively affected by Covid-19 pandemic (or you're in an *area* that was negatively impacted).
- Your business has experienced a decrease in revenue/sales in either 2020 or 2021 OR if they are located in an eligible census tract (see map below)
- If your business was established after March 2020, you must have been in operation for a minimum of 6 months and can provide financials showing sales revenue and expenses for an 180-day period (this is not necessarily the case if you are applying for the Community Improvement Fund)
- Businesses established after March 2020 must be located in a qualified ARPA census tract (see map below)
ELIGIBLE ARPA CENSUS TRACTS within nehda'S SERVICE AREA
Below is the NEHDA service area (red outline) and the ARPA census tracts (blue background). See full map here.
How much can I request?
Businesses with 50 or fewer employees can request up to $25,000 (if you have 10 or fewer employees you can request that $5,000 of your loan amount be forgiven as long as funds are spent on qualified purchases regardless of if you are applying for the Micro-Enterprise Fund or the Small Business Assistance Fund)
The amount of SEDCO Funds requested cannot exceed the amount of sales generated by the applicant during the past calendar year.
Businesses or development entities (including 501(c)3 entities) making capital investment resulting in renovation or other physical real estate improvements can request up to $200,000 in funds (none of it is forgivable). This is not limited to being equal to the previous year's revenue.
The amount of SEDCO Funds requested cannot exceed the amount of sales generated by the applicant during the past calendar year.
Businesses or development entities (including 501(c)3 entities) making capital investment resulting in renovation or other physical real estate improvements can request up to $200,000 in funds (none of it is forgivable). This is not limited to being equal to the previous year's revenue.
What can funds be used for?
- Capital Upgrades (structural improvements, interior and exterior renovations, HVAC upgrades, etc).
- Equipment or Machinery that is necessary in order to improve business operations or will empower you to pursue new business expansion opportunities.
- Technology systems or vendor support services to establish or upgrade e-commerce or online ordering capabilities, including but not limited to websites and/or mobile applications for customers to order merchandise or food, online reservation management, marketing and promotions, electronic customer loyalty programs, subscriptions for 3rd party e-commerce services, etc.
- Supplies and inventory necessary to continue business operations. Please note that supplies and inventory cannot exceed more than 20% of the total request being made to SEDCO.
- Operating expenses (rent and utilities) was an option last year, but is not an option this year.
Additional Qualifying uses for funds from the Community Investment Fund:
- Pre-development expenses (including but not limited to architectural plans, engineering reports, environmental assessments. Please note pre-development expenses cannot exceed more than 20% of the total funding request). Pre-development expenses may only be funded through the Community Impact Fund.
- Under circumstances where the applicant is purchasing property from the Greater Syracuse Land Bank, up to 80% of pre-development expenses may be requested for assistance from SEDCO. The borrower must have the remaining 20% secured from another source (e.g. investor, personal equity, grant).
What can forgivable funds be spent on?
All forgivable expenses must meet the following criteria:
- All purchases and investments using SEDCO funds must be verified as eligible expenses by producing a receipt, vendor invoice, copies of payments made by the borrower, etc.
- The business must remain in operation during the term of the agreement.
- Borrower must retain ownership of the entity and/or any affiliated property for the term of the agreement.
Application Process
This video is from 2021, much of it is the same but there are some differences in the application process so if you have questions, please reach out!
qUESTIONS ABOUT THE FIRST PART OF THE APPLICATION WHICH THE CITY HAS ANSWERED:
FOR ADDITIONAL QUESTIONS ABOUT THE 2ND PART OF THE APPLICATION, VISIT THIS PAGE.
1. In the eligibility section (2) it says that businesses must have experienced a decrease in revenue/sales in either 2020 or 2021, but in the chart (in 1) it says "Business with 10 or fewer employees in an in an industry OR LOCATION that has experienced economic hardship." and "Businesses with 50 or less employees, and experienced a decline in sales and/OR LOCATED IN A ARPA ELIGIBLE CENSUS TRACT" so I want to confirm that businesses in qualifying ARPA census tracts that did not necessarily experience a loss in their revenue still qualify on the basis of their location.
Answer: A business is considered eligible to apply under either circumstance if they have experienced a loss/decline or if they are located in an eligible census tract.
2. In the section about new businesses (4) it says that the amount requested cannot exceed the amount of sales generated by the applicant during the past calendar year - does this include entities who want to request money from the Community Impact Fund for property development?
Answer: The Community Impact Fund will not require the amount of sales to determine the maximum loan amount they may be considered for. That is specifically related to new businesses applying for operating assistance or other financial needs through the Micro-enterprise or Small Business Assistance Fund.
3. In the section on forgivable expenses it specifies that borrowers that own property within the City of Syracuse must be current on their taxes with no outstanding code violations. Is this true for any loan request or just forgivable loans?
Answer: Any borrower from SEDCO must be current on taxes and fees owed to the City of Syracuse and any affiliated property must have no code violations, unless these violations are intended to be addressed with the financial assistance being requested.
4. For borrows established after March 1, 2020, do they need to show they are already a client of a small business advising organization, or can they start working with one if they aren't already?
Answer: An applicant does not need to have an existing relationship with a small businesses advising organization to apply. For a new business that started after March 2020 approved for a SEDCO loan, this will be a contingency that the borrower must adhere to as part of the closing process.
5. If a business has already spent money on qualifying forgivable expenses can they request a forgivable loan and provide receipts/proof of payment as long as it was after January 1, 2022?
Answer: These must be for current or new expenses. An applicant will not be able to seek reimbursement for expenses or purchases that date back before the start of the SEDCO ARPA Program.
6. What about businesses who have been operating for 6 months or less?
Answer: The current round of ARPA loan applications does not have a deadline so if you've just opened, be ready to apply as soon as you've been open for 6 months!
Answer: A business is considered eligible to apply under either circumstance if they have experienced a loss/decline or if they are located in an eligible census tract.
2. In the section about new businesses (4) it says that the amount requested cannot exceed the amount of sales generated by the applicant during the past calendar year - does this include entities who want to request money from the Community Impact Fund for property development?
Answer: The Community Impact Fund will not require the amount of sales to determine the maximum loan amount they may be considered for. That is specifically related to new businesses applying for operating assistance or other financial needs through the Micro-enterprise or Small Business Assistance Fund.
3. In the section on forgivable expenses it specifies that borrowers that own property within the City of Syracuse must be current on their taxes with no outstanding code violations. Is this true for any loan request or just forgivable loans?
Answer: Any borrower from SEDCO must be current on taxes and fees owed to the City of Syracuse and any affiliated property must have no code violations, unless these violations are intended to be addressed with the financial assistance being requested.
4. For borrows established after March 1, 2020, do they need to show they are already a client of a small business advising organization, or can they start working with one if they aren't already?
Answer: An applicant does not need to have an existing relationship with a small businesses advising organization to apply. For a new business that started after March 2020 approved for a SEDCO loan, this will be a contingency that the borrower must adhere to as part of the closing process.
5. If a business has already spent money on qualifying forgivable expenses can they request a forgivable loan and provide receipts/proof of payment as long as it was after January 1, 2022?
Answer: These must be for current or new expenses. An applicant will not be able to seek reimbursement for expenses or purchases that date back before the start of the SEDCO ARPA Program.
6. What about businesses who have been operating for 6 months or less?
Answer: The current round of ARPA loan applications does not have a deadline so if you've just opened, be ready to apply as soon as you've been open for 6 months!