The Grow Peekskill Fund is a unique economic development partnership between the Grow America Fund, Inc. (GAF) and the City of Peekskill. GAF is a wholly-owned affiliate of the National Development Council and has been authorized by the U.S. Small Business Administration to operate a Small Business Lending Company. As a Small Business Lending Company, GAF makes SBA guaranteed loans to eligible small businesses that create jobs and make investments into communities throughout the country.

Through the Grow Peekskill Fund, eligible small businesses in Peekskill may apply for loans from $100,000 to $2,000,000 at competitive rates, floating or fixed, for a term of up to 25 years.

How the Fund Operates:

The City of Peekskill has capitalized the Grow Peekskill Fund with an investment into GAF that is targeted to assist eligible small businesses within its boundaries. In order to qualify for these loans, the businesses must also be engaged in a legitimate for-profit business activity and have the ability to create permanent jobs in the community. The Fund will look to finance healthy, successful, small businesses that need expansion capital to reach their full growth potential.

Use of Proceeds

Loan proceeds may be used for any legitimate business purpose, including working capital, purchase of machinery and equipment, acquisition of land and building, construction, renovations and tenant improvements. The Fund, however, does not provide venture capital and cannot provide funds for research and development or to satisfy equity needs.

Collateral

All loans must be adequately collateralized. Personal guarantees of the owners are required.
Terms – The Typical Structure
Working Capital: 3-10 years (normally 5-7 years)
Machinery & Equipment: 5-10 years/life of the asset
Tenant Improvements: term of the lease
Acquisition of Real Estate: Up to 25 Years
Construction/Renovations: Up to 25 Years

What does the Fund Offer a Borrower?

The Fund offers affordable growth capital on advantageous terms to borrowers who create jobs and invest in our community.

Does the Fund Compete with Local Banks and Other Lenders?
No. The Fund is meant to complement, not replace, existing sources of financing. Therefore, GAF encourages the borrower’s bank or other lenders to participate in providing a portion of the total financing. The Fund always works with existing lenders to structure the best financing available for the borrower.

Finally, as any other lender, the Grow Peekskill Fund will operate according to prudent lending practices.

Download an application below.

We have made the application process simple and straight forward. Our staff is readily available to assist you through the application process.
If you feel your small business is the type of dynamic and growing business we have been empowered to help succeed, please contact the Office of Economic Development at 914-293-0916.

Who May Apply: Building owners seeking to finance façade improvements to commercial and mixed use buildings located within the City’s Main Street Corridor or in the City’s Downtown Historic District. The City’s Main Street Corridor is defined as both sides of Main Street from Route 9 to the west side intersection of Main Street and Broad Street.

Eligible Uses of Funds: Improvements to building exteriors including, but not limited to, storefront construction, painting, window replacement, exterior lighting, and appropriate signs and awnings

Loan Amount: $50,000 for a single storefront; $35,000 for each additional storefront – 3 storefront maximum (minimum loan amount is $2,500)

Terms: Interest at a rate of 3% of the deferred loan amount will accrue annually for a term of 15 years. After 15 years interest will no longer accrue. Principal and accrued interest is to be paid in full upon any change in ownership of the mortgaged property or within 50 years of closing if not paid sooner.

Fees: $100 application fee, Historic and Landmarks Preservation Board fee, NYS mortgage tax expense, mortgage recording fee and title search fee.