Linked Deposit Program Assists Job Growth

By Assemblyman Will Barclay
In 1994, the state began what’s called the Linked Deposit Program. LDP began as a way to assist and encourage manufacturers and small businesses to undertake investments, which would ultimately lead to a stronger economy. According to an annual report published recently, in 2013, more than 1,000 jobs were created and retained in New York thanks to LDP.

The Linked Deposit Program enables qualifying businesses and manufacturers to obtain loans at a reduced rate, making borrowing less expensive. New York does not guarantee the loan, rather the lender, such as a commercial bank, savings banks, savings and loan associations, makes that credit decision and creates the loan.

The interest rates are subsidized by the state. During 2013, LDP processed 157 applications and approved 142 loans for deposits totaling more than $58.2 million. Empire State Development estimates this will generate $97.1 million in private sector capital investments.

Many businesses in Central New York and the Fingerlakes region have taken advantage of this program.

In 2013, 22 projects were approved in Central New York and 43 approved in the Fingerlakes.

This resulted in $25.5 million assistance for both regions. Since the program was created, the majority of businesses assisted are small businesses, ones with fewer than 100 employees. In fact in 2013, 94% of the loans approved will benefit small businesses.

It cost the state $237,328 in 2013 to provide this reduced rate through the program.

That is money well invested, if it reduces interest rates for businesses and helps make it more affordable to make investments in their own businesses.

There were some legislative changes which took place in 2011 to LPD to increase participation.

The lifetime maximum amount to borrow for eligible companies increased from $1 million to $2 million.

Another change allowed companies to apply for a four-year extension, providing up to eight years of assistance on certain loans.

In 2012, I was pleased to support a measure in the Assembly that extended a higher interest rate benefit to agricultural businesses. In 2013, the Legislature included technology and innovation companies to benefit from a higher subsidy as well. These were significant changes.

To learn how to apply or find more information, visit or call the regional offices.

Oswego and Onondaga county residents may call the Central New York office at 315-425-9110. Jefferson County residents may call the Watertown office of Empire State Development at 315-785-7907.

You may also call my office at 315-598-5185 to request a brochure on the program.

If you have any questions or comments or if you would like to be added to my mailing list or receive my newsletter, please contact my office by mail at 200 N. Second St., Fulton, NY 13069, by e-mail at [email protected] or by calling (315) 598-5185.