Loan Deferment

The BDC understands the difficult economic times for our local businesses. Businesses that have secured loans through the BDC as administrator for the City of Batavia, through the previous “Small Cities Loans” and currently the “Revolving Loan Fund”, and are making payments to the City of Batavia may be eligible for a deferment of 90, and up to 180, days. Please review the following resolution passed by the Board of Directors that will place loans into an automatic deferment for 90 days and can be extended up to 180, or returned to normal payment schedules immediately.

Resolution # 2 – 2020: Offering Ninety (90), up to One Hundred Eighty (180) Day Deferrals on Active Loans Collected by the City of Batavia Loan Programs Through Automatic ACH Origination.


Loan Deferment Application and Instructions



The Revolving Loan Funds

The purpose of the Revolving Loan Funds is to foster creation of jobs in the City of Batavia and to assist in the expansion of start up businesses. Loan payments are recycled back into the fund to provide capital for future business development.

City Grant Fund

The City of Batavia, on July 8th 2019 has opened up the RLF for building improvement grants.  Please see the policy Batavia RLF Building and BOA Grant Funds Policy, and for more information please call the BDC office 585-345-6380.


BDC Loan Fund

The BDC Loan Fund Application is available here

The Batavia Development Corporation (BDC) has contracted with the City of Batavia to administer the City’s small business lending program. The purpose of the Revolving Loan Fund is to foster creation of jobs in the City of Batavia and to assist in the expansion of start-up businesses. Loan payments are re-paid into the fund to provide capital for future business development.

Target Businesses:
Manufacturing, downtown or Ellicott St. area, food related including processing, class A office, niche restaurant, niche retail, printing, computer services, software development, gaming software development, unique boutique, textiles, health services (except for doctors and dentists).

Businesses that create or retain jobs in the City of Batavia are eligible to apply for loan funds. Please refer to the BDC Loan Application Pre-Screening Form to understand the criteria that the BDC board will use to score loan applications. Businesses must remain in the City of Batavia during re-payment of the loan to avoid default.

Scoring Criteria:  Sample scoring criteria is available here

1. Loan application and fee ($50)
2. Bank participation may be required and is encouraged
3. Loan terms: up to five (5) years
4. No penalty for early payment
5. Minimum loan $5,000
6. Maximum loan $30,000
7. If real estate is being acquired the BDC Board of Directors may increase the loan amount on a case-by-case basis.
8. The BDC may allow businesses to request more than one BDC loan subsequent to a previous distribution.
9. Recipients that had a history of delinquent payments, may request another loan so long as the previous loan/grant account was not submitted to litigation for debt collection and/or the account was not settled for a lesser amount due.

Interest Rate:
1. Prime – 1% for targeted businesses with high credit score
2. Prime- targeted businesses with low credit score
3. Prime+1% for non-targeted businesses
4. Prime + 2% for non-targeted businesses and low credit score

The BDC will require collateral to secure the loan. Collateral requirements will be based on risk. For all applications, the BDC Board may use its discretion to recognize extenuating circumstances and may also add additional conditions per approval such as:

1. Enhanced collateral to secure the debt
2. Reduce the loan or grant award
3. Adjusted interest rate based on credit score or other pertinent factors

While the BDC loans have limitations, the BDC reserves the right to either bundle the programs or to make an offer that exceeds the current maximum amounts to enhance business and economic development in the City of Batavia.

Past Due Accounts:
Monthly follow-up is expected with all delinquent accounts through phone calls, personal visits and/or written correspondence.

90 Days Delinquent:
Should an account become past due more than 90 days, the BDC may place the account with the collection agency of record.

180 Days Delinquent:
Should an account become past due more than six months/180 days, the BDC shall place the delinquent account with the collection agency of record.

360 Days Delinquent:
If the collection agency is unsuccessful in debt collection, the account will be turned over to a legal counsel of record to seek personal judgment and wage garnishment in order to recapture the debt owed. The accounts will no longer be reported on the “active loan” reports for the BDC and the legal counsel of record will issue status reports.

All fees associated with late payments, debt collection and legal action will be added to the balance of the loan debt.

Settlement Offers:
The BDC Executive Director may use their professional discretion in negotiating debt settlement offers.