ConnectOne Bank Joined New York Small Business Loan Program
The bank now offers low-interest capital to eligible businesses across New York.
Updated on Oct. 6, 2026 in Banking
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ConnectOne Bank has officially joined the New York State Linked Deposit Program to help regional firms access lower-interest capital. This partnership provides support for small and middle-market businesses looking to grow their operations.
Why it matters
By providing matching deposits at reduced rates, the state allows lenders like ConnectOne Bank to pass interest savings directly to borrowers. This initiative is designed to drive economic development, innovation, and business expansion.
Qualified firms can now access loans of up to $4 million per project, with a $6 million lifetime assistance limit. These reduced borrowing costs are available for a four-year term.
The players
ConnectOne Bank
A commercial bank providing deposit, loan, and business banking services to consumers and firms.
New York State Linked Deposit Program
A state-run initiative that incentivizes banks to offer lower-interest loans to help small businesses expand.
The details
New York State supports this program by making matching deposits with participating lenders at lower-than-market rates. ConnectOne Bank then passes these cost savings to business borrowers through reduced interest rates on their loans. Eligibility is structured by industry, with manufacturing, technology, and agriculture firms capped at 500 employees, while retail and service businesses in distressed census tracts must have 100 or fewer employees.
Timeline
The reduced borrowing cost program lasts for a four-year term.
Money Landscape
The state program functions as a long-standing tool to bridge the affordability gap for small-business capital. It sits within a broader strategy of providing state-backed incentives to offset current market interest rate pressures.
Small and middle-market business owners should evaluate if their firm meets the employee size caps for this reduced-rate financing. Consult with a qualified business banker to discuss how these terms align with your specific expansion or operational goals.
The takeaway
This partnership offers a significant pathway for qualified businesses to secure more affordable debt over a four-year window. Business owners should track the lifetime assistance limit of $6 million when planning long-term capital investments with a financial advisor.
Further reading
For more information on how financial policies affect your business accounts, visit our Banking section.
Source note: This article includes information reported by Long Island Business News.
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Do you believe it is currently too difficult for small businesses to obtain affordable bank loans?
