Southern Tier Enterprise Development Organization (STEDO)

​STEDO is a loan program for businesses in Allegany, Cattaraugus, and Chautauqua Counties.  The primary purpose of STEDO is to create and/or retain jobs and stimulate development of small to mid-sized businesses within the region.  STEDO has a strong history of working closely with businesses and lenders to assemble financial packages flexible enough to accommodate the needs of most small business owners.

​STEDO is an equal opportunity provider, employer, and lender.  Discrimination is prohibited by Federal Law.  Complaints may be filed with USDA, Director of Civil Rights, 1400 Independence Avenue., SW, Washington, DC 20250.
​STEDO Revolving Loan Fund

APPLICATION (complete and submit to rzink@southerntierwest.org)
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The Southern Tier Enterprise Development Organization Inc. (STEDO) is a Revolving Loan Fund made up of federal, state, and locally funded capital to assist in bridging funding gaps for small businesses. The goals and objectives of STEDO are to foster and maintain economic growth in the Western Region of New York State, specifically Allegany, Cattaraugus, and Chautauqua Counties and for some funds Erie and Niagara Counties are also included. Other goals include the diversification  of the regional economy and local economies within the region; to assist in the startup, retention of jobs, increase in per capita income, reduction of unemployment, and retention and growth of tax base in the region; and to help provide an environment that nurtures business development in the region.
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Funds are generated from the Economic Development Administration, Appalachian Regional Commission, United States Department of Agriculture Rural Development Intermediary Re-lending Program, and Empire State Development Job Development Authority.
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Advantages: 
  • Gap Financing
  • Economic Development Mission
  • Low-interest Fixed Rate Financing

Use of Funds: ​
The use of funds is dependent on what fund the Borrower is applying too.  However, STEDO can fund the following uses:
  • Fix asset loans for new acquisition or repair/renovation or existing facilities (including new construction, demolition, and site preparation costs), machinery and equipment
  • Property Acquisition
  • Working Capital
​STEDO has funds specifically for value-added agri-business and working capital.

Source of Funds: 
The Revolving Loan Funds are not established to compete with the banking community, but to compliment it by providing gap financing between what the bank can reasonably lend on a project and what the business can provide in equity.

Interest Rates: 
Interest rates on STEDO loans are based on the federal prime rate +/-2.

​Maturity Term: 
Maturity term varies depending on the loan fund.  For the ESD Regional Revolving Loan Trust Fund, which lends up to $40,000 in working capital; the term is up to five years, but with other funds listed in the above tabs terms can go up to 20 years depending on the project.

Equity Requirement:
There is a ten percent (10%) equity requirement for STEDO loans.

Application Fee:
Borrowers are responsible for a $250 application fee, all closing costs in the loan is approved, and a one percent (1%) service fee.

​Job Creation: 
STEDO requires that projects create 1 job per $25,000 lent.

Other Required Information:
  • Completed Application
  • Business Plan
  • Three-year Projections (cash-flow statement, profit and loss statement, and balance sheet)
  • Existing Business - last three years' projections and financials
  • Personal Tax Returns (last three years)
  • Itemized contractor's bid for construction or renovation, quotes for equipment, sales agreements, breakdown of working capital
  • Commitment letters from any other participating lender
  • Resumes of major players
  • Personal financial statements
  • Articles of incorporation
  • Key-person life insurance
  • Flood insurance
  • Environmental assessment
  • Two (2) formal declination letters from other lenders​
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COVID-19 EMERGENCY RELIEF FUNDS

​​APPLICATION
(complete and submit to rzink@southerntierwest.org)
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In response to the COVID-19 crisis and the impact it is having on businesses throughout Allegany, Cattaraugus, and Chautauqua Counties the Southern Tier Enterprise Development Organization (STEDO) is providing low-interest loans not to exceed $40,000 to businesses throughout Allegany, Cattaraugus, and Chautauqua Counties. This emergency funding, which originates from STEDO funding from the Economic Development Administration and Empire State Development – Regional Revolving Loan Trust Fund, which can be used for working capital needs, which includes operating costs and payroll. 
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These loans are to be paid back, however the STEDO Board is willing to work with Borrowers to ease the stress of repayment by offering periods of interest only.
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EDA fund requirements and terms:
  • Term limits would be reduced to two years and not exceed seven years
  • There will be no minimum equity portion requirement on working capital loans
  • There will be no application fee or service fee on working capital loans
  • The loan minimum amount lent will be lowered to $5,000
  • The loan per job ratio will be increased to 1 job created/retained per $75,000 lent
  • A streamlined application process for working capital loans will be implemented including the following requirements:
    1. Completed Micro-Loan Program application found on website
    2. Prior two years yearly business financial reports             
    3. Projected balance sheet and income statement for two years following receipt of the loan
    4. 3-Years of business Federal tax returns. If 2019 tax returns have not been filed, 12/31/2019 financial statements may be accepted.
    5. 1-Year of personal tax returns for all 20% or more owners.
    6. Personal Financial Statement (either on a standard bank form or in a comparable format) for each principal owning at least 20% of the company
    7. Completed Credit Authorization form
    8. Concise business and management narrative including narrative on impact of COVID-19 pandemic (2-pages)
    9. Supporting documentation of worth of collateral

​ESD Regional Revolving Loan Trust Fund:
  • Term limits would be reduced to two years and not exceed five years
  • There is a 10% equity portion requirement on these working capital loans due to a NYS statute created when the fund was created prior to Covid-19
  • There will be no application fee or service fee on working capital loans
  • The loan minimum amount lent will be lowered to $5,000
  • The loan per job ratio will be increased to 1 job created/retained per $75,000 lent
  • A streamlined application process for working capital loans will be implemented including the following requirements:
    1. Completed Micro-Loan Program application found on website
    2. Prior two years yearly business financial reports             
    3. Projected balance sheet and income statement for two years following receipt of the loan
    4. 3-Years of business Federal tax returns. If 2019 tax returns have not been filed, 12/31/2019 financial statements may be accepted.
    5. 1-Year of personal tax returns for all 20% or more owners.
    6. Personal Financial Statement (either on a standard bank form or in a comparable format) for each principal owning at least 20% of the company
    7. Completed Credit Authorization form
    8. Concise business and management narrative including narrative on impact of COVID-19 pandemic (2-pages)
    9. Supporting documentation of worth of collateral ​

​LINKS: STEDO Application / STEDO Brochure

For more information contact: Richard Zink, Executive Director
716-945-5301 ext. 2203   rzink@southerntierwest.org

Western Region Corporation (WRC)

WRC is a not-for-profit corporation operating in New York State, primarily in Allegany, Cattaraugus, Chautauqua, Erie, and Niagara Counties.  WRC works in coordination with other economic development organizations to strengthen small businesses and create and retain jobs.
WRC operates  a small business loan fund called the WRC Regional Working Capital Loan Fund, which was established with a grant from the NYS Urban Development Corporation through the NYS Regional Revolving Loan Trust Fund Program.

​​LINKS: WRC Loan Fund Presentation Format / WRC Fund Administration Procedures 
WRC Loan Application Requirements / WRC Detailed Marketing Brochure / ​WRC Downtown Redevelopment Fund

For more information contact:  Richard Zink, Executive Director
716-945-5301 ext. 2203  rzink@southerntierwest.org

Southern Tier Extension Railroad Authority (STERA)

STERA was created by the New York State Legislature to preserve and enhance the system of railroads serving Chautauqua, Cattaraugus, Allegany, and Steuben Counties in NYS and Warren and Erie Counties in the Commonwealth of PA, so as to insure a healthy economy for these counties.
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STERA's goal is to encourage an operating railroad that provides adequate rail service, to increase rail shipping carload volumes, to catalyze opportunities for additional business expansion and development based on rail service, to achieve improved functional performance of the rail lines through rehabilitation efforts, to encourage safe railroad operations, and to achieve a clean audit report and NYS ABO compliance report. 

​LINK TO STERA Website

For more information contact:  Tom Barnes, Sr. Regional Economic Development Coordinator
716-373-8880  tbarnes@southerntierwest.org

Southern Tier West Development Foundation (STWDF)

The Southern Tier West Development Foundation is a regional community foundation created to help concerned individuals mobilize charitable giving to support the betterment of their cities, towns, and villages.
The single most important factor in community success is involvement of citizens in your community.  Your gifts of time, talent, and dollars make all the difference.

​LINK TO Foundation Website 

​For more information contact: Richard Zink, Executive Director
716-945-5301 ext. 2203  rzink@southerntierwest.org

Southern Tier West Angel Fund

Southern Tier West worked in coordination with the three County IDA’s and Rain Source Management, LLC, out of Wisconsin,  with funding through the Appalachian Regional Commission to form the Southern Tier NY Angel Fund, LLC in March 2020. The Southern Tier NY Angel Fund, LLC is comprised of individuals and families as well as a number of institutional members that believe in the economic vitality of our three county region and currently has an investment portfolio of $250,000. The fund is currently serving the region of southwestern New York State consisting of Chautauqua County, Cattaraugus County and Allegany County. The Company will invest with a secondary focus in counties adjacent and contiguous to the primary Region (i.e., Erie County, Wyoming County, Livingston County and Steuben County).  

LINK TO Angel Fund Website
​For more information contact: Richard Zink, Executive Director
716-945-5301 ext. 2203  rzink@southerntierwest.org