Economic Development Loans


The City of Saratoga Springs established the “Economic Development Revolving Loan Program” (hereinafter, the Loan Program), to stimulate job creation for residents of low- and moderate-income. The Loan Program helps to subsidize these job opportunities by offering low interest loans and/or loan guarantees to businesses physically locating within the City of Saratoga Springs. The goal of the Loan Program is to create at least one such job for every $25,000 loaned.

The Loan Program, originally funded by a U.S. Department of Housing and Urban Development (HUD) grant, is administered locally by the City’s Office of Community Development (OCD) and all applicants must agree to federal program requirements. The City’s intent is to make loans to eligible businesses to promote job creation for LMI residents. New loans will then be issued as funds become available from repayment of prior loans.


  1. A successful loan applicant must be a business that is physically located within the city limits of Saratoga Springs.
  2. A successful loan applicant must have all real estate taxes and special assessments on all identified real property in the loan application, residential and commercial, paid in full prior to the submission of any loan application.
  3. A successful loan applicant must create new Full-time equivalent (FTE) employment for persons of low- and moderate-income. These employment positions should be available to persons with no more than a high school education and should not require previously acquired skills or training.

    Current Income Guidelines
    Low Income
    Moderate Income
    Household Size
    Maximum Annual Income
    Household Size
    Maximum Annual Income
    1 person
    1 person
    2 persons
    2 persons
    3 persons
    3 persons
    4 persons
    4 persons
    5 persons
    5 persons
    6 persons
    6 persons
    7 persons
    7 persons
    8 or more persons
    8 or more persons
  4. Eligible businesses include manufacturing, warehousing and wholesaling enterprises. Finance, insurance and real estate businesses are not eligible to apply. Potential applicants from retail and service-oriented businesses will be evaluated on a case by case basis.
    The City may make exceptions to these exclusions for loans to fund on or off-site infrastructure improvements on a case by case basis.
  5. The maximum loan from this fund to any one applicant will be $75,000. Exceptions to this guideline will be made only in the most unusual of circumstances. Interest rates will be negotiated on a case by case basis but will carry a minimum charge of the Prime Rate minus 1%, not to go below 0%.
  6. Fixed asset loans may be approved for up to 100% of the costs for land acquisition, building construction or rehabilitation, capital equipment, and attendant soft costs (e.g., legal, accounting, design fees, surveys, etc.).
  7. Direct loans for working capital may be approved to cover documented working capital requirements of any business eligible for assistance.
  8. Adequate security is a fundamental requirement for all loan applications. Fixed assets and/or working capital loan facilities will be secured with the most senior lien position available on land, buildings, capital equipment, inventory, accounts receivable, and other business assets. Personal guarantees from the principals of the project company will also be a mandatory requirement for all loan applications.


The City’s Community Development Planner, Planning Department Administrator, and City Attorney work with local businesses to develop and review formal loan applications and to make recommendations to the Saratoga Springs City Council regarding loan approval or disapproval.

Loan applicants must submit a pre-application letter indicating their interest, a nonrefundable $250 application fee, and the following documentation (if applicable) to the Office of Community Development:

  1. A description of total project cost from start-up to completion and operating costs of any new or renovated facility. Costs should be broken down into equipment, working capital, construction, etc.
  2. Commitment letters or explanation of other financing sources for total project costs.
  3. Description of current status of ownership demonstrating site control. Status of site plan approvals needed from local boards.
  4. Implementation and construction schedule from start-up through completion and operation.
  5. Number and type of jobs to be created by initial project over the next five years and identification of the number or percentage of jobs that would be held by, or made available to, LMI persons. This percentage must be equal to, or greater than, 51% of the new jobs.
    The applicant must provide job descriptions, information on job training programs and the intended hiring process and description of actions which will be taken to give LMI persons first priority in filling jobs, and any other information required by OCD.
  6. Dollar value and brief description of contracts already committed for production and a three-year projection of contracts expected.
  7. Description of products to be assembled/manufactured or services to be provided.
  8. An indication of how this loan would be utilized as part of the total project costs (e.g. equipment purchase, working capital, and construction).
    All information provided with the loan applications will be maintained in a strictly confidential manner. SEDC staff will work with the applicant to insure that program objectives are being met and that the pre-application is complete.

Please find application here.