NYS Industrial Development Agencies have long been a major source of financing assistance for not-for-profit entities. Unfortunately, that assistance is currently on hold until the Legislature enacts a fix to the sunsetted legislation. In the meantime, IDAs are frustrated about their inability to assist 501C3 organizations. The good news is that there is a program available to provide financing to nonprofits- the New Market Loan Fund- brought to NY through the nationally renowned Community Reinvestment Fund (CRF), a 45 year old community development institution. The New Market Loan fund provides second mortgage financing for not-for-profits to acquire, renovate, and/or construct their own facilities. Typically, the project costs are shared as follows: banks and other partners finance 50% of the total project with a first mortgage loan. The New Market Loan provides a 40% second mortgage loan (maximum $3 million). The buyer puts in 10% equity. Percentages are based on total project cost including acquisition, construction, renovation, equipment, and soft costs. Once IDAs can again handle not-for-profit transactions, the New Market Loan can combine with Industrial Revenue Bonds (New Market can even subordinate to a tax exempt bond!) and straight lease back transactions. Terms are generous- 20 to 25 years. Rates are fixed and low-based on 7 or 10 year treasury plus a modest spread with even lower rates if the project is located in a New Market Tax Credit area. For projects in the neighborhood of $10 million, the New Market Loan is an excellent solution to the financing needs. Some of the most recent types of deals done with this financing include: * Non-profit school- $3.225 million real estate purchase - New Market Loan $1.225 million in second mortgage position. * Transitional housing program-$450,000 real estate purchase- New Market Loan $400,000 first mortgage. * Children's Community Outreach Center- $4 million real estate purchase including construction and soft costs; $1.6 million New Market Loan second mortgage. The New Market Loan can also provide refinancing when a nonprofit wants to use its facility's equity to refinance debt or put money into operations. And, the loan is also available to for-profit businesses. For information about the New Market Loan Fund, a great financing resource for not-for-profits in NYS, visit the Greater New York Development Co. www.gnydc.org. Roslyn Goldmacher is a licensed real estate broker in N.Y. as well as president/CEO and founder of the Long Island Development Corp. & The Greater N.Y. Development Co.