Revolving Loan Fund

The Ulster County Revolving Loan Fund offers low-interest, fixed rate loans to businesses and nonprofit organizations in Ulster County. Designed to fill financing gaps, the program supports viable projects when full commercial lending isn't attainable.

The RLF is administered by the Ulster County Economic Development Alliance, Inc. (UCEDA) and has been designed to address lending challenges experienced by small businesses and nonprofit organizations:

  • Micro Loans for small scale capital needs and applicants that lack commercial “bankability” due to insufficient collateral or underdeveloped credit profiles (loans of $7,500 - $15,000)
  • Gap Loans intended to provide supplemental capital to close a remaining funding gap in partnership with a commercial lender (loans up to $75,000)
  • Bridge Loans tied to documented reimbursement-based grants awarded to nonprofit organizations, intended to bridge the time between starting the project and receiving the grant money (loans up to $150,000)

How can loans be used?

Loans can be used for activities supportive of business growth and expansion: 

  • Land or building purchases
  • New construction or building renovations
  • Site improvements
  • Equipment and fixtures or machinery purchases
  • Short-term operating costs (rent, utilities, salaries & more)

Basic Eligibility

To be eligible for a loan through the fund, you must:

  • Be a business or nonprofit based in Ulster County
  • Provide at least 3 years of documented operating revenue (historic financials)
  • Submit a comprehensive business plan covering the planned project

Other eligibility criteria apply. Please review the UCRLF Program Guidelines(PDF, 315KB).

If you don’t have a completed business plan ready, please contact the Mid-Hudson/Catskills Small Business Development Center for a FREE consultation and assistance. Please refrain from submitting AI-generated business plans.

A business plan generally includes — at minimum — details about the business idea, products or services, target customers, market research, pricing, operations, and financial projections.

Applications without a comprehensive business plan will not be considered.

Terms and Fees

General Terms 

Use Case Micro Loan  Gap Loan
Land & Building Acquisition not eligible 15 years
New Construction & Building Renovation not eligible 15 years
Site Improvements not eligible 10 years
Machinery, Equipment and Fixtures 6 years 7 years
Working Capital and Inventory 6 years 7 years
Interest Rates Fed prime – 1% (min. 3.5%)

7 years: Fed prime – 2% (min. 3.5%)

10 – 15 years: Fed prime – 1% (min. 4.5%)

Loan maturities may be adjusted by UCEDA based on asset life, project cash flow, underwriting considerations, and program objectives. 

Fees

Application Fee
  • $200 for businesses
  • $100 for nonprofit organizations

payable at submission of the full application
 Closing Fee 1.0%, payable at closing
 Commitment Fee 1.0%, payable at closing

Fees are subject to change at the discretion of UCEDA.

Apply Now

Prospective applicants must submit a pre-application form first. There are separate forms for businesses and nonprofits:

The formal application process will open on August 21, 2026. After that, applications may be submitted at any time during the calendar year and will be accepted on a rolling basis as long as funds are available.

Once the formal application process opens, our team will reach out to everyone who completed the pre-application to schedule an in-person meeting to discuss the application process and eligibility. Following the meeting, eligible applicants will be invited to submit a full application.

Before applying, interested businesses should seek financing from a commercial lender. The program is not meant to replace financing that would be attainable through commercial lenders.  

 

How the Program Works

Businesses

Step 1.Explore Funding Opportunities Through Local Banks

Before applying, you must seek financing from a local bank. If you are offered a loan for an amount less than the full cost of your project, you can apply for a gap loan to make up the difference. If you are unable to access any commercial financing, you may be eligible for a micro loan.

Step 2.Review Eligibility Requirements

Please review the eligibility requirements in the Program Guidelines(PDF, 315KB). If you have questions whether your business's needs match the program guidelines, please contact us at (845) 340-3556.

Step 3.Complete the Pre-Application Form 

Please fill out the pre-application form. This step requires you to create an account with the application portal. Filling out the form will take about 5-10 minutes. No documents will be needed for upload at this time, but you should have the basic financial information about your project ready. Our team will contact you after you submit the form. 

Business Pre-Application Form

Step 4.Schedule a Meeting and Share Documents

Our team will reach out to schedule an in-person meeting. You will be asked to send documents about your business in advance of the meeting. This may include:

  • Most recent 3 years Business Federal Income Tax Returns 
  • Three years of financial statements (for current year: interim year-to-date balance sheet and profit & loss statement)
  • Business Debt Schedule
  • Accounts Receivable Aging
  • Inventory Report

Step 5.Meet with the Revolving Loan Fund Team

At the meeting, we will go over the details of your business's finances and the project you are seeking to fund. If both meet the eligibility requirements of the program fit, we will walk you through the application process. 

If our team determines that your project is not eligible for the program, we will share information about alternative options and ways to explore other avenues of funding.

Step 6.Submit Full Application and Pay Fee

If you are eligible to move forward, we will provide a link to the online application, along with worksheets and instructions. For each principal with 20% or more ownership in the business, you must submit a personal financial statement along with three years of personal federal income tax returns.

All applications must be submitted online via the official application portal. Once submitted, you will be prompted to pay the application fee.

Step 7.Underwriting and Committee Review

Our team will review your full application and perform a business credit analysis, as well as an analysis of each principal’s personal finances. We may reach out to clarify issues that come up in the process, conduct field visits, or request additional information. 

After underwriting, we will make a loan recommendation. All loan recommendations will first be reviewed by the Revolving Loan Fund Committee, and then approved or denied by the UCEDA Board of Directors. 

Step 8.Decision Notification

If your project is selected and approved for a loan by the UCEDA Board of Directors, you will be notified via email as soon as is practicable.

Step 9.Closing and Payment of Associated Fees

The Closing will be conducted at the Office of the County Attorney (Lender’s Attorney), at 244 Fair St., Kingston, NY 12401. While the borrower is not required to have their own attorney present, it is strongly recommended. 

The borrower’s attorney fees for the closing of the RLF loan are eligible costs under this program and need to be submitted as part of the project costs with the application. 

You will be required to pay the 1% closing fee and 1% commitment fee before or at Closing.

Step 10.Keep Your Project on Track, and Your Business Growing!

Complete your project and make regular payments on your loan. 

Our team will monitor all loans on an ongoing basis to ensure compliance with loan agreements and to protect the financial integrity of the fund.

Step 11.Funds Recirculate

As you pay back your loan, funding becomes available for other businesses and organizations.

Nonprofits

Bridge loans are designed to help nonprofit organizations begin or continue projects while waiting to receive grant funds that have already been awarded.

Step 1.Apply for and Receive a Grant Funding Award

Bridge loans are available only for grants that have already been awarded. The grant may come from a:

  • Federal agency
  • New York State agency
  • Regional funding organization
  • Other public or institutional grantmaker

Step 2.Review Eligibility Requirements

Please review the eligibility requirements in the Program Guidelines(PDF, 315KB). If you have questions whether your organization's needs match the program guidelines, please contact us at (845) 340-3556.

Step 3.Complete the Pre-Application Form 

Please fill out the pre-application form. Filling out the form will take about 5 minutes. You will not be required to upload any documents at this time. Our team will contact you after you submit the form. 

Nonprofit Pre-Application Form

Step 4.Schedule a Meeting and Share Documents

Our team will reach out to schedule an in-person meeting. You will be asked to send documents about your project in advance of the meeting:

  • Grant award letter
  • Project budget
  • Project timeline
  • Information about your organization's finances

Step 5.Meet with the Revolving Loan Fund Team

At the meeting, we will go over the details of your organization's finances and the project you are seeking to fund. If both meet the eligibility requirements of the program, we will walk you through the application process. 

If our team determines that your project is not eligible for the program, we will share information about alternative options and ways to explore other avenues of funding.

Step 6.Submit Full Application and Pay Fee

If you are eligible to move forward, we will provide a link to the online application, along with worksheets and instructions. 

All applications must be submitted online via the official application portal. Once submitted, you will be prompted to pay the application fee.

Step 7.Underwriting and Committee Review

Our team will review your full application and perform a credit analysis. We may reach out to clarify issues that come up in the process, conduct field visits, or request additional information. 

After underwriting, we will make a loan recommendation. All loan recommendations will first be reviewed by the Revolving Loan Fund Committee, and then approved or denied by the UCEDA Board of Directors. 

Step 8.Decision Notification

If your project is selected and approved for a loan by the UCEDA Board of Directors, you will be notified via email as soon as is practicable.

Step 9.Closing and Payment of Associated Fees

The Closing will be conducted at the Office of the County Attorney (Lender’s Attorney), at 244 Fair St., Kingston, NY 12401. While the borrower is not required to have their own attorney present, it is strongly recommended. 

The borrower’s attorney fees for the closing of the RLF loan are eligible costs under this program and need to be submitted as part of the project costs with the application. 

You will be required to pay the 1% closing fee and 1% commitment fee before or at Closing.

Step 10.Complete Your Project and Submit for Reimbursement

Work on your project and make regular payments on your loan. You may be asked to report on your progress or any changes in the grant activities.  

Once your project is complete, submit for reimbursement from the grant program. 

Step 11.Funds Recirculate

Pay back your loan as soon as you are reimbursed by the grant program, freeing up funding for other businesses and organizations.

Frequently Asked Questions

Eligibility and qualifications

Will I be eligible?

We evaluate loan applications on an individual basis and can give you a good sense as to whether you are a good fit for the program after you submit the pre-application and the additional documents requested before the in-person meeting. Apart from general eligibility criteria, we will look at the following basic requirements:

  • Your business must be profitable after paying owners a reasonable salary
  • You must have a good track record of paying business and personal loans on time
  • You must be up to date on all taxes

For full eligibility criteria, including eligible activities, please review the Program Guidelines(PDF, 315KB).

What Credit Score is required?

This program will not pull your credit score, but we require information on the owner’s personal finances to determine that there are no recurring and unresolved personal credit issues.

Are there industry restrictions?

With the exception of the following, all businesses can apply.

Not eligible are: Pre-revenue startup businesses, restaurants, speculative investment companies, short term rentals, massage parlors, private recreational facilities (country clubs, golf clubs), suntan facilities, racetracks, gambling facilities, cannabis retail dispensaries and indoor growing facilities, and retail-only liquor stores (those without manufacturing or taproom/restaurant services on site).

Can startups apply?

Pre-revenue startup businesses are ineligible to apply. Generally, we expect to see at least 2 years, ideally 3 years, of revenue from core business operations. Exceptions may be made on a case-by-case basis, e.g. for new owners of a recently acquired existing business.

Is collateral required?

Generally, we require that any available personal or business collateral be pledged as security for the loan. That said, if you do not have any collateral to pledge, we will still review the application as we may be able to offer easements on collateral requirements.

Do I need to own the property my business / project is located at?

Applicants must demonstrate site control, such as through a deed, lease, purchase agreement, or option at closing.

 

Loan Terms and Structure

How much can I borrow?

That depends on the loan category that applies to your project, your total project cost, your ability to repay, loan maturity, and other Underwriting considerations. Loan amounts typically range from $7,500 to $150,000.

What are the interest rates?

Interest rates vary depending on the use of the funds. Rates are based on the Prime rate published in the Wall Street Journal (WSJ). They range from WSJ Prime Rate minus 1.00% to WSJ Prime Rate minus 2.00% but may be changed at the discretion of UCEDA if market conditions warrant it.

What can loans be used for?

Your loan can fund almost any business expense related to expansion and growth, including working capital, building or land purchases, building or site improvements, or equipment purchase. Loans cannot fund personal expenses.

What repayment terms are available?

The loan term always matches the amortization period, meaning there is never a balloon payment at the end of the loan. Interest-only payments for the first 6 months are available under certain circumstances.

 

Application Process

What documents are required, and why?

The required documents vary on a case-by-case basis. In general, businesses need the following documents to get started:

  • 3 most current years of business and personal tax returns
  • 3 most current years of financial statements and interim business financials (balance sheet and profit/loss statement)
  • Fully completed business debt schedule
  • Personal financial statements for all principals with 20% or more ownership in the business (we will provide applicants with these)

Please review the UCRLF Document Checklist(PDF, 94KB) for a full list.

To give you a general idea, this video gives you a good idea of why certain documents will be used to assess business loan applications. Note that UCEDA may use a different required debt coverage ratio and request additional documents!

Is a business plan required?

In general, business plans are required and should include the proposed project/expansion. Non-profit organizations may be required to submit a project plan or strategic plan instead.

A business plan is a document that outlines a company's goals, strategies, and plans for achieving them, including financial projections, market analysis, and organizational structure. 

If you don’t have this document ready, please contact the Mid-Hudson/Catskills Small Business Development Center for a FREE consultation and assistance in writing a comprehensive business plan.

Are personal financial statements needed?

Yes, for all principals with 20% or more ownership in the business.

How long does it take until loans are approved?

Time to approval depends on how quickly applicants are able to provide the required documents(PDF, 94KB).

After we receive the initial assessment, we will make a decision on whether to move forward in about 1 week. The applicant will then submit a full application.

From there, it takes 4-6 weeks to fully underwrite the loan and seek approval from the two loan committees.

Our team will process your application with diligence and in the interest of supporting your business, but we do have slower processing times than a commercial lender would have.

  

Project Implementation

Can I start working on the project before I get approved for a loan?

Funds will not be available for work done on a project or project phase completed prior to RLF Committee and UCEDA board approval. Staging or phasing of complex projects is allowable under certain circumstances and will be reviewed case-by-case – please contact our team if that applies to your project.

Can I change the use of the loan funds during the project?

No, you may not change the purpose of the loan. Loan funds must be used for the purpose stated in the application. Annual site visits will be performed during the loan period to document progress on the project. Necessary changes to the project or amortization schedule due to a shift in market or economic conditions require approval by the UCEDA Board of Directors. Please contact us immediately if any issues arise.

Contact Us

Phone

(845) 340-3556

Email

dedprograms@ulstercountyny.gov

Important Dates

July 31, 2026
Pre-application opens

 

Aug 20, 2026
Info Webinar
2-3 PM • Register

 

August 21, 2026
Application process opens

 

Applications are accepted on a rolling basis as long as funds are available.

 

Documents & More Info

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