Funding Businesses in Newburgh’s Creative Neighborhood
Posted in Commercial Real Estate Trends | Last Updated April 6, 2020
The Liberty Street Bistro in Newburgh’s Creative Neighborhood
Newburgh, December 14, 2018
You may have heard, Newburgh is undergoing lots of change as a stream of creative businesses move here, particularly to its historic districts.
The businesses are frequently owned by creative entrepreneurs with a lot of gusto, talent, and drive but lacking that one key ingredient: cash.
As they say, “cash is king,” and so necessary in the early years of a business.
Hudson Valley public and private partners lend financial support
This predicament was recognized by two key players in the Hudson Valley, Rhinebeck Bank, headquartered in Rhinebeck, N.Y. and Hudson Valley Pattern For Progress.
Together they created an economic development plan with the goal of improving business opportunity in a specific area of Newburgh.
Rhinebeck Bank is a local institution committed to offering quality banking and financial products. The bank has branches throughout the Hudson Valley.
Hudson Valley Pattern For Progress is a ” planning, advocacy and research organization whose mission is to promote regional, balanced and sustainable solutions.” It is located in Newburgh.
The partners focused on Newburgh’s two historic districts The East End Historic District and the Montgomery, Grand, Liberty Street district.
These two areas have block upon block of historic, national architectural treasures offering charming storefronts and cobblestone streets.
Rhinebeck Bank and Pattern for Progress recognized that the districts’ features would be attractive to new businesses. And they knew there were anchor tenants of substance already there, leading a renaissance of sorts and encouraging discovery of the area.
The two districts:
- The East End Historic District runs south of Broadway and encompasses dozens of blocks.
- The Montgomery-Grand-Liberty Street designated historic district runs north of Broadway and is a smaller district.
Within the two districts, the partners carved out an area they designated the “Newburgh Creative Neighborhood.”
A partial view of Newburgh’s Creative Neighborhood
Inside the area important anchor tenants include:
- Orange County Community College’s Newburgh campus
- Washington’s Headquarters
- The businesses along Liberty Street
- Newburgh Brewing Company
- Atlas Studios
“The idea is to create a buzz about why this is a really good place to live and work,” said Jonathan Drapkin, Pattern’s president, and CEO.
In order to attract more businesses to the neighborhood, the Rhinebeck Bank besides creating the Creative Neighborhood (a wonderful, marketable designation) created a loan portfolio of the same name and allocated $3,000,000.00 to it.
This loan portfolio funds secured term loans as an attraction impetus for businesses thinking of coming to Newburgh’s Creative Neighborhood (or those already in it looking to grow).
Mike Quinn, the bank’s president and CEO emphasized loans for up to $250,000 will be available at below-market-rates.
“There’s a lot of great ideas, but just an idea doesn’t do it,” Quinn said at a presentation first unveiling the plan. “It needs financing (and) it needs advice,” he said.
One such recipient who applied and qualified for the loan is chef Mike Kelly owner of the highly regarded Liberty Street Bistro and the Newburgh Flour Shop. Kelly is a C.I.A. trained chef.
As required, both his properties are in the “Creative Neighborhood.”
Chef Mike Kelly on the Creative Neighborhood loan program.
“I think any new business, especially with someone who never has run a business before, your challenges in your first year are access to capital. Having access to the funds that Rhinebeck gave us got us through that first year and now we have already grown by 25% year over year.” Kelly said recently.
Types of loans available
Express Business Loan:
Equipment / Vehicle / Leasehold Improvement Loans:
Financing for the purchase of equipment, vehicles, or for leasehold improvements. These loans are available to businesses within or relocating to the Newburgh Creative Neighborhood.
Financing used to purchase or refinance commercial real estate properties. In addition, construction mortgages are available to improve existing properties or develop new sites.
Of note the loans are:
- Below market rates
- Have no bank fees
- Offer extended amortization periods
- Are at favorable advance rates
If you are a business in Newburgh, relocating here, or starting here and are interested in the program visit two key links on Rhinebeck Bank’s website:
(All loans subject to credit approval. Non-Bank fees will still apply. Loans originated under this program are available to businesses within or relocating to the Newburgh Creative Neighborhood.)