STEDO Contact Info

Richard Zink, Executive Director
716-945-5301 ext. 2203   rzink@southerntierwest.org

STEDO Links

​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.

​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.

​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.

​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.
​Advantages: 
  • Gap Financing
  • Economic Development Mission
  • Low-interest Fixed Rate Financing
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​