CIDC designed the prototype of the Family Business Loan Program, which has successfully been implemented in Orange County and several client communities.
In Orange County, New York, Provident Bank, an FHLB member bank, agreed to sponsor the program and provide below-market rate commercial loans at fixed rates for terms up to 20 years. The Cities of Newburgh and Middletown committed funds debt reserve.
The $51 million initiative is designed to assist family-owned and small businesses in Newburgh, Middletown and Port Jervis. This public/private partnership is stimulating economic development in the target cities, creating jobs as local businesses receive the funds to expand and new businesses are attracted into the area.
The Family Business Loan Program has been duplicated by CIDC in Pennsylvania and California.