The New York City Capital Resource Corporation (CRC) is a local development corporation administered by New York City Economic Development Corporation. The mission of the CRC is to encourage community and economic development and job creation and retention throughout New York City by providing lower-cost financing programs to qualified not-for-profit institutions and manufacturing, industrial, and other businesses for their eligible capital projects.

CRC offers a new means for not-for-profits to obtain lower-cost, tax-exempt financing. Through its Loan Enhanced Assistance Program (LEAP), CRC can make direct loans to not-for-profits that are expanding or improving services in New York City.

CRC Budget Summary (PDF 8 KB)
This document contains the CRC total revenues and expenses, and CRC fund balance for fiscal year 2006.

CRC’s Loan Enhanced Assistance Program (LEAP) is designed to provide streamlined and cost-effective access to tax-exempt financing, and Federal rules regulating private activity bonds apply to tax-exempt loans under LEAP.

Organizations with major capital projects may be able to use triple tax-exempt loans issued by the New York City Capital Resource Corporation (CRC) to finance the construction, acquisition, renovation and equipping of their facilities.

If New York City Industrial Development Agency (NYCIDA) tax exemption benefits are also sought (such as mortgage recording tax waiver), projects must satisfy the requirements of NYCIDA’s authorizing legislation and related guidelines.

Eligible borrowers include not-for-profit organizations with federal 501(c)(3) status incorporated or otherwise qualified to do business within New York State, such as private schools, arts and cultural organizations, and organizations providing social services, student housing, senior housing and healthcare.

Eligible projects may include construction, acquisition, renovation and equipping of facilities primarily for the borrower’s own use located within New York City, and/or, under certain circumstances, reimbursement or refinancing of existing debt used to fund a capital expense.

There are certain considerations applicants should bear in mind when contemplating tax-exempt financing through CRC.

• All benefits are discretionary. Selection considerations include need for financial assistance and the impact of the proposed project on New York City's economy.
• The nature of the project and expenditures must meet federal tax criteria to qualify for tax-exempt financing. The project must also meet certain New York State qualitative criteria applicable to NYCIDA financings.
• Applicants must satisfy the credit standards of the letter of credit provider for the program.
• The environmental condition of the project site(s) and the company's liability and other insurance coverage must be determined to be satisfactory prior to closing.
  

Financing a project with credit-enhanced loans through CRC enables borrowers to initiate needed capital improvements at the lowest available cost and to manage better the timing of their capital investments.

• Transaction costs are reduced, in part due to non-negotiable, streamlined documents.
• Borrowings of as low as $1 million may be cost-effective.
• Borrowers work with LEAP's underwriter, Banc of America Securities, to structure the proposed debt.
• Bond terms are based on debt repayment capacity and useful life of the assets to be financed.
• LEAP's structure utilizes built-in credit enhancement in the form of letters of credit through the program’s letter of credit provider, Bank of America, N.A. 
• Borrowers that do not meet the letter of credit provider's credit standards may use an underlying letter of credit to support their participation in LEAP.
• To limit annual debt service, loans can be repaid over a 20-30 year period with capital campaign receipts or other income, subject to satisfaction of tax requirements and continued satisfaction of applicable credit standards.
  

• LEAP debt will be structured with variable rates. Borrowers preferring a fixed rate can achieve this by entering into swaps.
• LEAP debt is not an obligation of the City of New York, the State of New York or any subdivisions of either.
• To achieve efficiency and keep transaction costs down, closings may be scheduled for multiple borrowers on pre-set dates.

Primary and secondary schools must comply with the NYCIDA Private School Compliance Criteria.

Transactions on behalf of schools with annual tuition charges that are equal to or greater than 75 percent of the NYCIDA’s average maximum annual tuition ($18,550 in 2006) must satisfy NYCIDA scholarship and community service requirements.

Please plan ahead with these calendars and deadlines to submit an application in a timely manner and/or to attend public hearings. Public Hearings are held at NYCEDC's offices at 110 William Street, 4th Floor at 10:00 a.m. All meeting dates and times are subject to change. Please confirm events with NYCEDC.