BUSINESS FINANCING · NY

Business Financing Guide for Putnam County, New York

Putnam County, NY has a growing small-business community — from contractors and trades workers in Carmel and Brewster to small retailers and real-estate investors throughout the Hudson Valley. This guide walks you through the types of business financing available locally, who qualifies, what documents you'll need, and which local lenders and intermediaries actually serve Putnam County residents. Federal programs like SBA loans are included as helpful context, but the real starting point is the local layer of CDFIs, credit unions, and community lenders who know your county and your situation.

§ 01 — What it is

What Is Business Financing — And Which Type Fits You?

Business financing is any arrangement that puts capital into your business so you can start it, grow it, buy equipment, cover a slow season, or purchase real estate. In Putnam County, the most common types used by small businesses and solo contractors are: **Term Loans:** You borrow a lump sum and repay it over a set period — typically 1 to 10 years — with a fixed or variable interest rate. Good for equipment purchases, renovations, or a one-time expansion. **Lines of Credit:** A revolving credit limit you draw from as needed and repay. Useful for contractors managing irregular cash flow between jobs. **SBA-Backed Loans:** Loans made by local banks and CDFIs that carry a federal guarantee, which lowers the risk for lenders and often means better terms for borrowers. The SBA 7(a) and SBA Microloan programs are the most relevant for Putnam County small businesses. **Microloans:** Smaller loans — typically $500 to $50,000 — designed for early-stage businesses or entrepreneurs who don't yet qualify for a traditional bank loan. Often offered by CDFIs and nonprofit lenders. **CDFI Loans:** Community Development Financial Institutions (CDFIs) are nonprofit or mission-driven lenders. They serve borrowers who face barriers at traditional banks — including those without a long credit history, those using an ITIN instead of a Social Security Number, or those in underserved areas. **Real Estate / Commercial Mortgage Loans:** For investors or business owners purchasing or refinancing commercial property in Putnam County. These typically require a larger down payment (often 20–30%) and a longer underwriting process. Take your time identifying which type fits your current need before approaching any lender. There is no rush.

§ 02 — Who qualifies

Who Qualifies? Local Economy Context for Putnam County

Putnam County sits in the Hudson Valley region of New York, bordered by Westchester, Dutchess, and Connecticut. Its economy includes a strong base of construction trades, home services, landscaping, and small retail — alongside a growing number of creative professionals, real-estate investors, and micro-manufacturers. **Key qualifying factors most local lenders look at:** - **Time in business:** Many traditional lenders prefer at least 1–2 years. CDFIs and microloan programs often work with businesses that are newer or still in the startup phase. - **Credit score:** Conventional banks typically want a personal credit score of 650 or above. CDFIs and ITIN-friendly lenders often have more flexible thresholds and look at the full picture. - **Revenue and cash flow:** Lenders want to see that your business generates consistent income, even if modest. Bank statements often matter more than tax returns for sole proprietors. - **Collateral:** Not always required, especially for microloans and CDFI products. But having equipment, a vehicle, or real estate can improve your terms. - **ITIN borrowers:** Many contractors and small-business owners in Putnam County file taxes with an Individual Taxpayer Identification Number (ITIN) rather than a Social Security Number. Several local lenders and CDFIs explicitly accept ITIN borrowers. You do not need to be a U.S. citizen to access business financing in New York. **Sectors with strong local demand for financing:** Residential and commercial construction, landscaping, cleaning services, food businesses, childcare, transportation, and small real-estate investment (1–4 unit residential).

§ 03 — What you need

Documents You Will Typically Need

Requirements vary by lender and loan type, but preparing these documents in advance will speed up any application: **For all applicants:** - Government-issued photo ID (passport, driver's license, or consular ID) - ITIN or Social Security Number - Last 2 years of personal tax returns (or ITIN tax returns) - Last 2 years of business tax returns (if your business has been operating) - Last 3–6 months of personal and business bank statements - Proof of business registration (DBA, LLC, or corporation documents filed with New York State) - Business license or contractor license, if applicable **For SBA or larger loans, you may also need:** - A simple business plan or written description of how funds will be used - A profit-and-loss statement (your accountant or a SBDC counselor can help prepare this) - A list of business assets (equipment, vehicles, tools, inventory) - Lease agreement or proof of business address - Existing debt schedule (any current loans or credit cards) **For real-estate loans:** - Property address and purchase contract (if buying) - Rent rolls or lease agreements (if the property already has tenants) - Two most recent mortgage statements (if refinancing) **Tip:** You don't need to have every document perfect before reaching out to a lender. Many local CDFIs and SBDCs will sit down with you first and tell you exactly what they need. That first conversation is free and carries no obligation.

§ 04 — Where to start in Putnam County

Local Lenders, CDFIs, and Resources That Serve Putnam County

These are real organizations with a track record of serving Putnam County and the surrounding Hudson Valley region. Origen Capital is a directory — we are not a lender and do not collect your information. Always contact these organizations directly. --- **Accion Opportunity Fund** A national CDFI with strong reach in New York. Offers microloans and small-business loans to entrepreneurs who face barriers at traditional banks, including ITIN borrowers and newer businesses. Loan amounts typically range from $5,000 to $100,000. English and Spanish support available. Website: accionopportunityfund.org --- **Pursuit (formerly Greater New York Lending)** One of the most active SBA lenders and CDFIs in New York State. Pursuit makes SBA 7(a) loans, SBA 504 loans (for commercial real estate and equipment), and direct CDFI loans to small businesses across the Hudson Valley, including Putnam County. They also provide free business advising. Website: pursuitlending.com --- **Hudson Valley Credit Union (HVCU)** A regional credit union serving Putnam County residents and businesses. Credit unions are member-owned and typically offer more flexible underwriting than large commercial banks. HVCU offers business checking, business term loans, and lines of credit. Membership is open to anyone who lives or works in Putnam County. Website: hvcu.org --- **Northeast Community Bank (NeCoB)** Headquartered in White Plains with branches serving the Hudson Valley. NeCoB has an explicit focus on ITIN lending and immigrant small-business owners. They offer business loans, construction loans, and real-estate financing to borrowers who may not qualify at larger banks. Website: necocb.com --- **Rhinebeck Bank** A community bank with Hudson Valley roots, offering small-business loans, commercial real estate financing, and SBA loan products. Known for a relationship-based approach — you deal with local decision-makers, not a distant approval committee. Website: rhinebeckbank.com --- **Small Business Development Center (SBDC) at Rockland Community College — Hudson Valley Region** The nearest SBDC regional office serving Putnam County businesses. SBDC advisors provide free, confidential one-on-one business advising, help you prepare loan applications, build financial projections, and connect you with the right lenders. This is one of the best free resources available to any Putnam County entrepreneur. Website: nyssbdc.org --- **SBA New York District Office** The SBA does not lend directly to most businesses, but it backs loans made by local lenders and certifies CDFIs. The New York District Office can help you find SBA-approved lenders near Putnam County and answer questions about SBA Microloan intermediaries. Website: sba.gov/offices/district/ny/new-york --- **Empire State Development (ESD) — Hudson Valley Regional Office** New York State's economic development agency. ESD administers state-level loan and grant programs for small businesses, including the Linked Deposit Program and various workforce and capital access initiatives. Their Hudson Valley regional staff can connect Putnam County businesses to state programs. Website: esd.ny.gov

§ 05 — What to avoid

New York State Regulatory Notes

New York has some of the strongest small-business borrower protections in the country. Here's what matters for Putnam County businesses: **Commercial Financing Disclosure Law (S5470-B)** As of 2023, New York requires lenders and brokers offering commercial financing (including merchant cash advances and revenue-based products) to provide clear, standardized disclosures before you sign — including the total cost of capital and an Annual Percentage Rate (APR) equivalent. If a lender cannot or will not show you this disclosure, walk away. **Usury and Rate Caps** New York has civil usury limits, though commercial loans are often treated differently than consumer loans. High-cost merchant cash advances and revenue-based products can carry effective rates well above 50% APR — and they are legal in New York for commercial use. This is why reading disclosures carefully matters. **Business Registration** All businesses operating in New York must be registered with the New York Department of State. LLCs must file Articles of Organization and pay a biennial filing fee. A properly registered business is easier to finance and protects your personal assets. **Contractor Licensing in Putnam County** Home improvement contractors in New York State and in Putnam County may need to carry a license, bond, and certificate of insurance. Lenders financing contractor businesses often require proof of licensure. Check with the Putnam County Clerk's office and the New York Department of Labor. **New York Forward Loan Fund** New York State has periodically offered low-interest loan programs for small businesses, including in the Hudson Valley. Check Empire State Development's website for current availability. **Taxes** New York requires businesses to file and pay state income tax and, for most entities, a filing fee. Sole proprietors with ITIN numbers file state taxes in the same way as SSN holders. Having a clean state tax filing history improves your chances with any lender.

§ 06 — Ask a question

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