Financing
MONTGOMERY COUNTY INDUSTRIAL DEVELOPMENT AGENCY (MCIDA) OFFERS:
Tax-Exempt Industrial Development Bonds — both public and private placement. The Agency is empowered to issue industrial development bonds for manufacturers. Because the interest which accrues to the bondholder is exempt from federal and state personal income tax, the effective rate of borrowing is generally below the prime interest rate. This tool can be used for all eligible project costs including machinery and equipment, acquisition and/or construction of new facilities.
Taxable Industrial Development Bonds — similar to the tax-exempt industrial development bond, this tool is commonly used for projects which are not eligible for tax-exempt financing (non-manufacturers). The expected rate of borrowing is set at prime or slightly above prime by the Bond Holder or if, a public issue, by the underwriter.
Both tax-exempt and taxable bonds provide an opportunity for expanding businesses to negotiate a payment in lieu of tax agreement (PILOT) which can provide substantial reduction in real estate, construction sales and mortgage recording taxes.
Montgomery County Dept. of Economic Development & Planning
MONTGOMERY COUNTY REVOLVING LOAN FUND — capitalized from program income (loan repayments with interest), of the County’s HUD Small Cities Community Development Block Grants. Matching Fund loans and loan guarantees are available for manufacturing companies and certain qualifying businesses with job creation/retention components. Loan proceeds may be used for real estate acquisition, renovations, machinery and equipment purchases and working capital. Competitive below market rates and terms are available.
MONTGOMERY COUNTY HUD CDBG PROGRAM — The U.S. Department of Housing and Urban Development (HUD) makes funds in the form of grants and low interest loans available to qualified municipalities. The MCDEDP coordinates and administers both the application and program administration for the County. Funds are typically used for infrastructure development, business loans, and housing.
BUSINESS RETENTION, EXPANSION, AND RECRUITMENT PROGRAM — The foundation of this program rests with the “One-Stop Shop” service provided by the Montgomery County Business Development Center. Also, by having the same staff administer both the MCIDA and other County Economic Development & Planning Programs we are able to competitively, and in a timely manner, address a particular business’s needs. We are also the point of contact for all County leads (ex. Empire State Development, National Grid, business, etc.). This program also contains the County’s marketing, project development, and project delivery efforts.
PLANNING SERVICES — The MCDEDP implements the County’s Comprehensive Planning Program and provides all the planning services for the County and it’s municipalities. The Dept. maintains an in depth Geographic Information Systems database. As the Census Data Affiliate for the County, the department is the clearinghouse for all County and municipal demographic data. The department also actively seeks grants that assist in developing plans for transportation, disaster mitigation, economic development, recreation and other quality of life issues.
EMPIRE ZONE — MCDEDP has extended its resources to the City of Amsterdam in their effort to maximize the benefits of the Empire Zone. The MCDEDP dedicates time and resources in the Zone coordination effort that will be allocated and used in obtaining State-matching dollars. The cooperative effort will ensure the success of the Zone. Currently, the DeGraff Street building, the Glen Canal View Business Park, and the Florida Business Park are all within the Zone.
GRANT WRITING & ADMINISTRATION — MCDEDP is responsible for coordinating grant writing activity for various economic and community development projects. MCDEDP coordinated with the Mohawk Valley Economic Development District to secure infrastructure money from the Federal Economic Development Administration. MCDEDP has worked closely with Empire State Development on various programs including: Build Now NY and Pipeline for Jobs.
FINANCIAL PACKAGING — MCDEDP works with various funding sources to help businesses obtain the best financial package. MCDEDP is an associate development corporation for the New York State Business Development Corp. The Department also works with Mohawk Valley Economic Development District and Empire State Development to access their various loan pools. In addition to the regional funds, MCDEDP works closely with various local loan pools and financial institutions.