Final Legislative Approval Is Given To Improve the Excelsior Linked Deposit Program
June 8, 2004
The State Senate today gave final legislative approval to legislation (A.6035/S.3333) that would extend certain loan periods under the state’s Excelsior Linked Deposit Program from two years to four years. "Improving proven initiatives like the Linked Deposit Program enables us to provide even more help to small businesses across the state," said Assemblyman Robin Schimminger, who sponsored the bill in the Assembly, which approved it in March. "In 1993, I sponsored the legislation that created the Linked Deposit Program," said Schimminger, chairman of the Assembly Committee on Economic Development, Job Creation, Commerce and Industry. "Over the years, I have continually reevaluated the program to make changes to update and streamline the program and maximize its benefits for businesses, including extending the availability of the loans, increasing both the maximum loan amount and the monies available for ‘linked’ loans, and now extending the term of the loans." By using state deposits to leverage low-cost loans, the Linked Deposit Program encourages businesses to improve their performance and competitiveness. The loans are available through 107 lending institutions, including commercial banks, savings banks, savings and loan associations, farm credit institutions and the New York Business Development Corporation. "With the economic climate and interest rates in a state of flux, it is necessary to increase the loan periods from two years to four years so that the businesses that obtain these loans can experience the intended savings," said Schimminger. "Since its inception, the Linked Deposit Program has funded nearly 2,000 projects for a total amount of some $660 million dollars, leveraging more than $1.4 billion dollars in new capital investment by businesses in New York State." The legislation now awaits final approval by the Governor.