The Economic Reinvestment Program (ERP) was created to help attract new private investment that results in the creation of new jobs, the retention of existing jobs, and the expansion of the City of Utica's tax base. This revolving loan fund acts as a supplement to normal financing arrangements for low and moderate income businesses. ERP funds are leveraged against private and other funding sources to provide a below-market blended interest rate. Interest rates are fixed at 85% of prime at the time of closing.

The primary goal of the ERP program is to help small business owners to create/retain permanent jobs and make investments in distressed or disadvantaged communities within the City of Utica.  UED provides its communities these important benefits:

-   UED offers attractive rates and terms to small business concerns that create jobs and make investments in the community;

-   UED programs offer small businesses access to a friendly public lender.  While not every application can or will be approved, UED strives to finance every eligible, viable small business regardless of loan size [with some exceptions], business classification, or use of funds. As a true community-based public lender, UED is especially committed to meeting the needs of small businesses in distressed areas, the needs of minority and woman entrepreneurs, and the employment needs of the community's low and moderate income residents.

While UED is not a traditional 'lender', neither is it a competitor to local banks.  UED does not exist to take conventional loans away from banks that are willing to make them.  Instead, UED exists to work with local and state governments, other local development organizations and banks to structure the best deal for a growing small business. By providing Gap financing, UED assists the local banks and borrower to achieve project objectives.  For the local lender it is sharing the risk, providing them with subordinate financing.  For the borrower it is longer terms, lower equity injection and affordable interest rates. A win-win scenario.

Loan Terms:
Rate: Interest rates are fixed at 85% of prime at the time of closing.
Purpose: Working Capital, equipment and real property
Loan maximum: $150,000 or 35% of eligible project costs at a rate of $15,000 per job created.
Term: 5 - 15 years
Owner Equity contribution: Minimum 10%