New York Business Development Corporation Empire State CDC: The 504 Company Statewide Zone Capital Corporation potx

New York Business Development Corporation
Empire State CDC: The 504 Company
Statewide Zone Capital Corporation
Lending Partners Across the State
Access to capital for creditworthy businesses
www.nybdc.com ANNUAL REPORT 2010
Members
Adirondack Bank
Adirondack Trust Company
Alliance Bank
Alpine Capital Bank
Amalgamated Bank
American Community Bank
Apple Bank for Savings
Astoria Federal Savings
Axa Equitable Life Assurance Society
of the United States
Ballston Spa National Bank
Bank Hapoalim
Bank of Akron
Bank of America
Bank of Bennington
Bank of Castile
Bank of Cattaraugus
Bank of China
Bank of Greene County
Bank of Holland
Bank of Millbrook
Bank of Richmondville
Bank of Smithtown
Bank of Utica

Beacon Federal
Berkshire Bank
Bridgehampton National Bank
Canandaigua National Bank
& Trust Co.
Capital Bank & Trust Company
Capital One Bank
Carver Federal Savings Bank
Catskill Hudson Bank
Cattaraugus County Bank
Cayuga Lake National Bank
Champlain National Bank
Chemung Canal Trust Company
Citibank
Citizens Bank
Commerce Bank
Community Bank
Country Bank
Dairylea Cooperative Inc.
Delaware National Bank of Delhi
Dime Savings Bank of Williamsburgh
East West Bank
Elmira Savings Bank
Empire State Bank
Evans National Bank of Angola
First National Bank of Dryden
First National Bank of Groton
First National Bank of Jeffersonville
First National Bank of Long Island
First National Bank of Scotia

First Niagara Bank
First State Bank
Five Star Bank
Flushing Savings Bank
Fulton Savings Bank
Genesee Regional Bank
Glens Falls National Bank
& Trust Company
Gold Coast Bank
Gotham Bank of New York
Gouverneur Savings
& Loan Association
Greater Hudson Bank
Habib American Bank
Hamptons State Bank
HSBC Bank, USA
Hudson Valley Bank
Israel Discount Bank of New York
J.P. Morgan Chase Bank
KeyBank
Lakeshore Savings Bank
Legacy Banks
Lyons National Bank
M&T Bank
Mahopac National Bank
Maple City Savings Bank
Medina Savings & Loan Association
Mitsubishi UFJ Trust
& Banking Corporation (USA)
NBT Bank

National Bank of Coxsackie
National Bank of Delaware County
National Union Bank of Kinderhook
New York Commercial Bank
Northfield Bank
Northwest Savings Bank
Oneida Savings Bank
Orange County Trust Company
PathFinder Bank
Patriot Federal Bank
Peoples National Bank
Pioneer Savings Bank
Provident Bank
Putnam County National Bank
of Carmel
Putnam County Savings Bank
Rhinebeck Savings Bank
Ridgewood Savings Bank
Riverside Bank
Rome Savings Bank
Rondout Savings Bank
Safra National Bank of New York
Saratoga National Bank
& Trust Company
Savannah Bank
Sawyer Savings Bank
Signature Bank
Solvay Bank
Sovereign Bank
State Bank of India

State Bank of Long Island
Sterling National Bank
Steuben Trust Company
Stissing National Bank
of Pine Plains
Suffolk County National Bank
TD Bank
The Berkshire Bank
Tioga State Bank
Tompkins Trust Company
Trustco Bank, New York
Ulster Savings Bank
Upstate National Bank
USNY Bank
Valley National Bank
Victory State Bank
Walden Federal Savings
& Loan Association
Walden Savings Bank
Wallkill Valley Federal Savings
& Loan Association
Watertown Savings Bank
Wilber National Bank
It has been a challenging few years for small business.
Notwithstanding these challenges, many of our small
business borrowers report encouraging improvement in
revenue in FY 2010 and a growing sense of optimism.
Commercial loan demand appears steady, although at a
reduced volume; incentives and enhancements to SBA
loan programs appear to be having a positive effect on

small business lending and our portfolio continues, on
balance, to perform well.
Our member banks are effectively serving creditworthy
borrowers and working with NYBDC to assist potential
borrowers access capital if a conventional solution is not
available. Despite the overwhelmingly negative views
expressed in the media, New York’s small businesses are
particularly well served by a creative and committed
banking community that has recognized the importance of
small business to our economy.
Many of the same banks (and their legacy partners) that
support NYBDC today were among the group that formed
NYBDC more than 55 years ago…as a bank funded
alternative for small businesses that are not able to qualify
for conventional financing. The leadership of the New
York banking community and its commitment to our state
and its small businesses are apparent each and every day in
communities across our state. Our partnership results in a
unique alternative that promotes opportunity and
prosperity…going beyond the conventional solution.
It is clear that the pace and depth of economic recovery
will be largely determined by small businesses as they are
expected to create the vast majority of new jobs. If small
businesses are indeed the “engine” that drives our
economy, the capital provided to these small businesses by
NYBDC and our lending partners is the “fuel” necessary
to move us forward.
During FY 2010, we saw a substantial (38 percent)
increase in demand for SBA 504 loans, all in support of
capital projects, reversing the decline we experienced in

FY 2009. This increase was partially offset by a decline
(27 percent) in conventional and SBA 7(a) loan approvals
after record-breaking approvals in FY 2009. This decline
was the result of increased SBA lending activity by many
SBA lenders. Overall, our loan approvals increased $30.8
million or 15.6 percent.
On a combined basis, NYBDC and Empire State CDC
was again the leading SBA lender in New York State by
dollar amount with loan approvals representing more than
25 percent of the total loan approvals. SBA incentives
under the American Recovery and Reinvestment Act of
2009 (ARRA), though erratic due to funding issues,
provided a boost to small business lending. A similar result
is expected from the recently passed Small Business Jobs
Act of 2010, which not only provides funding to extend
the temporary fee reductions and guaranty increases
contained in ARRA, but also provides some important
resources to serve small businesses going forward,
including a permanent increase in the maximum loan
amount to $5 million and a temporary provision that
permits the SBA 504 program to be used to refinance debt
on owner occupied property. All are significant tools to
help us help small business start, grow or sustain
operations.
We exceeded our income, closing and portfolio goals
while increasing our pipeline of loans on commitment to
$247 million. We expanded our assistance to lending and
economic development partners by providing processing
and underwriting services. We continue to develop exciting
partnerships designed to promote access to capital for

small business by our lending and community partners.
New York Business Development Corporation 1
Report on Operations
(continued on page 2)
Prepare for the Recovery…
Patrick J. MacKrell, President and CEO, and
James J. Byrnes, Chairman of the Board, NYBDC

2 2010 Annual Report
Significant aspects of our FY 2010 performance include:
• Revenue increased 11.7 percent to $12.8 million;
• Income before taxes increased 28.9 percent to $2.1
million;
• Loans approved in FY 2010 are expected to create or
retain 10,336 jobs; and
• Loans to minority or women-owned businesses
represent approximately 35 percent of our loan
portfolio.
A key milestone was the increase in our managed
portfolio by $286 million (37 percent) to $1.05 billion,
driven by strong loan closing activity ($141 million),
increased servicing for other lenders and the addition of
SBA 504 loan portfolios totaling $180 million that were
transferred to Empire State CDC by the SBA. The
substantial increase in non-interest income resulting from
the growth in our serviced portfolio will support economic
development activities across our entire area of operations
and will allow us to expand our support of small business.
In November 2009, we were challenged by Senator
Charles Schumer to develop and fund a “second look”

loan program. We received strong support and
encouragement from Senator Schumer and the New York
Bankers Association. Our member banks responded
enthusiastically and generously with loan commitments to
facilitate a $10 million loan fund. What is now our
Credit
for Success – Second Look Program
provides a second
look at loans that have been declined by the bank of
account and includes technical assistance provided by the
New York State Small Business Development Centers.
This program is a clear example of collaboration with our
member banks to craft appropriate and timely responses to
the challenges faced by small business.
Although there is much still to be done, NYBDC
remains able and committed to provide resources not only
to New York State’s small businesses but also to other
lending and community partners in a way that benefits
small business by facilitating access to capital from many
and varied sources. We remain optimistic about the future
and work each and every day to speed economic recovery
through our efforts to provide the opportunity for
businesses to start, sustain or grow operations and increase
employment and opportunity.
We are not just preparing for the recovery…we are
doing our part to make it happen!
Report on Operations
(continued from page 1)
Patrick J. MacKrell James J. Byrnes
President & CEO Chairman of the Board

(in millions)
(in millions) (in millions)
$141,087,368
$233,551,235
$1,050,656,977
2006
2007
2008
2009
2010
2006
2007
2008
2009
2010
2006
2007
2008
2009
2010
Loan Advances
Total
Loan Approvals
Total
Loan Portfolio Managed
Total

NYBDC
New York Business Development Corp.
Board of Directors

Ronald M. Bentley
President & CEO
Chemung Canal
Trust Company
Elmira, New York
G. Gary Berner
Executive Vice President
First Niagara Bank
Buffalo, New York
Mary C. Bintz
Senior Vice President
Bank of America
Merrill Lynch
Albany, New York
Mark C. Boyce
Director
N.Y. Life Investment
Management, LLC
New York, New York
Bruce W. Boyea
Chairman, President & CEO
Security Mutual
Life Insurance Company
Binghamton, New York
Dale A. Burnett
Manager
Real Estate Restructuring
AIG Investments
New York, New York
James J. Byrnes

Chairman
Tompkins Financial
Corporation
Ithaca, New York
Robert L. Como
Senior Vice President
JPMorgan Chase Bank
White Plains, New York
Robert M. Curley
Chairman
New York Region
Berkshire Bank
Albany, New York
F. Edward Devitt
President
Devitt Management
& Associates
Montgomery, New York
Linda Dickerson
Hartsock
Executive Director
Center for CleanTech
Entrepreneurship
Syracuse, New York
Hugh Donlon
President
Northeast Region
KeyBank
Albany, New York
Daryl R. Forsythe

Chairman
NBT Bancorp
Norwich, New York
Thomas F. Goldrick, Jr.
Retired Chairman
State Bank of Long Island
Jericho, New York
Robert C. Jussen
Senior Vice President
HSBC Bank USA
New York, New York
Robert W. Lazar
Retired President
New York Business
Development Corporation
Albany, New York
Patrick J. MacKrell
President & CEO
New York Business
Development Corporation
Albany, New York
Brian T. McMahon
Executive Director
New York State Economic
Development Council
Albany, New York
Carl E. Meyer
President & CEO
The Solar Energy Consortium
Kingston, NY

Dennis M. Mullen
Commissioner
New York State Department of
Economic Development
Rochester, New York
Allen J. Naples
Regional President
M&T Bank
Syracuse, New York
Lisa M. Quiroz
Senior Vice President
Corporate Responsibility
Time Warner
New York, New York
Marjorie Rovereto
President & CEO
Ulster Savings Bank
Kingston, New York
Michael P. Smith
President & CEO
New York Bankers
Association
New York, New York
George Strayton
President & CEO
Provident Bank
Montebello, New York
Mark E. Tryniski
President & CEO
Community Bank

DeWitt, New York
Maryann M. Winters
Certified Public Accountant
Sirchia & Cuomo, LLP
East Syracuse, New York
Lewis Yevoli
Retired New York State
Assemblyman
Old Bethpage, New York
John Rhea
Chairman
New York City
Housing Authority
New York, New York
Hugh A. Johnson
Chairman
Hugh Johnson Advisors, LLC
Albany, New York
New York Business Development Corporation 3

4 2010 Annual Report
For years, Douglas Oakland had been looking for a way to expand his successful restaurant and marina in Hampton Bays,
Oakland’s Restaurant and Marina. Then, last year, he learned that the owner of an adjacent restaurant and marina on Shinnecock
Inlet was looking to retire and had put his business on the market. Oakland knew this was just the right opportunity for him and
his customers.
The adjacent business sat on two and a half acres and consisted of two buildings, a 3,000-square-foot restaurant that seats
107 inside and another 80 on the deck and a building that serves marina customers. By purchasing the business, Oakland was
able to accomplish his goal of expansion, and eliminate direct competition for his business.
With the help of Chris Van Bell and Mike Quigley at M&T Bank, Oakland was put in touch with Richard Amsterdam, vice
president at NYBDC. Through the collective efforts of M&T Bank and NYBDC, Oakland was able to secure financing to make

the purchase. M&T Bank provided the $1.417 million first mortgage financing and Empire State CDC: The 504 Company
provided another $859,000 in financing. M&T Bank also provided a $1.022 million separate mortgage on an affiliate property to
complete the transaction at the agreed upon purchase price. With that, Sunday’s on the Bay Restaurant and Marina was created.
“Since he operated the adjacent restaurant and marina, Sunday’s on the Bay was a logical transaction for Doug,” said
Amsterdam. “The transaction limited direct competition and provided Doug, Oakland's Restaurant and Marina and Sunday's on
the Bay with the opportunity to utilize economies of scale and symmetries to grow and expand his business.”
“Rich and Chris were great to work with,” said Oakland. “There was a lot of work involved, but there was nothing we
couldn’t handle. This is a great program and we got some great rates.”
Sunday’s on the Bay is a full-service restaurant and marina, drawing customers from the local area, as well as vacationers
and commercial fishermen. The restaurant offers mid-priced seafood entrées and caters to families. Open from early spring to
late fall, the marina has 40 slips with the average size boat docked there being 30 feet in length. In addition, Sunday’s on the
Bay offers diesel and gas to customers and has a large-scale ice generating machine used by both sport and commercial
fishermen.
With the purchase of the new venture Oakland was able to retain 15 individuals employed by the former owner and add
another 20 new jobs. These positions include wait and bus staff, bartenders, kitchen workers and marina staff. In addition,
Oakland employs 90 at Oakland’s Restaurant and Marina.
Oakland has what he calls “high expectations” for the new business he owns, with plans for upgrades in the restaurant and
expansions to the fuel dock and the sport fishing marina.
Empire State CDC: The 504 Company • The 504 Company is authorized by the SBA to offer the SBA 504 loan
program in New York State. The SBA 504 loan program facilitates financing up to 90% of project costs for acquisition and/or
improvement of owner-occupied commercial real estate, machinery and equipment. The 504 Company is managed by
NYBDC.
By purchasing adjacent business, restaurant
and marina owner meets expansion goal and
eliminates competition
Sunday’s on the Bay
Hampton Bays, New York
New York Business Development Corp. 5
Chris Van Bell of M&T Bank, Douglas Oakland of Sunday’s on the Bay and Rich Amsterdam
of NYBDC.

6 2010 Annual Report
Within only two years of its founding, Premier Flooring Yonkers and Premier Flooring Liquidators’ owner John Posimato
was faced with the fact that his businesses were growing so fast that they had outgrown the 6,500-square-foot warehouse facility
in Elmsford from which they operated. In order for the businesses to continue on its growth trajectory, Posimato knew that he
needed to plan for an expansion.
The companies had been operating in very cramped space with no showroom and minimal warehouse space. In addition, the
location was in an industrial park with no road frontage, difficult access and limited parking.
Expansion was a must and so Posimato purchased property on Saw Mill River Road, a busy thoroughfare in Elmsford,
approximately a third of a mile from the original facility, and began construction of an 11,000-square-foot commercial building.
Premier Flooring Yonkers has three separate divisions: builder, commercial and residential. Its clients include Elizabeth
Arden, Trump Park Residence and Gateway Condominiums. The company installs laminate, carpet, ceramic and vinyl flooring
and flooring accessories such as custom runners and elegant stair rods. Flooring Liquidators purchases bulk flooring products
that are close-out items from major manufacturers and sells them to its customers at prices that are often lower than those of
Posimato’s competitors as a result of his contacts in the industry.
Posimato credits Tony Palmesi at Mahopac National Bank, his business banker, with introducing him to Empire State CDC
and the SBA 504 loan program. Together with Mahopac National Bank, NYBDC Senior Vice President Tom McHale was able
to put together financing that enabled Posimato to purchase the property and construct the new building, which was designed
with LEED certified materials. Mahopac National Bank provided a first mortgage of $1.5 million and Empire State CDC: The
504 Company provided a second mortgage in the amount of $1.2 million.
Now, Premier Flooring has a 3,000-square-foot showroom with room for 50 to 60 wood floor displays, and Flooring
Liquidators has its own 6,000-square-foot showroom. The new facility has excellent road frontage and parking. This increased
visibility has allowed Posimato to significantly reduce his advertising expenses. He estimates that he has saved at least $30,000
in advertising costs over last year.
“The relocation to a new, much larger facility was an aggressive move for John after only two years of operations,” said
McHale. “Mahopac National Bank, as his relationship bank, was very familiar with John and his business and recognized early
on that the 504 program was a good fit for the transaction. The use of the SBA 504 program allowed the business to retain its
cash for working capital purposes, which was necessary given its rate of growth.”
“My experience with Tom McHale and NYBDC was great,” Posimato said. “He was very diligent and told me what we
needed to do; I got it done and everything went very smoothly.”
The relocation to the new facility and expansion have helped revenues grow to almost double what they were prior to the

move and fostered the creation of more than 10 jobs.
Empire State CDC: The 504 Company • The Small Business Jobs Act of 2010 increased the SBA 504 loan
amount to $5 million and created the opportunity to use the program to refinance debt on certain projects.
Flooring companies’ expansion and
move to high-traffic location results in
significant increases in sales
Premier Flooring
Yonkers, Inc. and
Flooring Liquidators
Inc.
Elmsford, New York
Tom McHale of NYBDC, Kim Arco of Mahopac National Bank and John Posimato of Premier Flooring.

8 2010 Annual Report
Since the 1930s, Mercer’s Dairy has been a familiar name in Upstate New York. Located in the rural community of
Boonville, a region dominated by dairy farming and other agri-businesses, Mercer’s Dairy had its beginnings as a traditional
milk bottling and delivery service. Yet, all along, Mercer’s has had a history of reinvention.
In 1952, Earl Mercer began ice cream production. In the first year, Mercer’s produced nearly 5,000 gallons of ice cream.
During the late ‘50s and early ‘60s, Mercer continued expanding his business and opened stores throughout the area.
Through a succession of owners, Mercer’s Dairy continued to offer high quality dairy products, and by 2001 was producing
150,000 gallons of ice cream annually.
In 2002, Quality Dairy Farms, Inc., a collective of nine farm families from Lewis and Jefferson counties, acquired
Mercer’s in an effort to help shore up its longstanding role in the community and provide the leverage and inspiration
needed for it to grow and compete with larger companies. For several years, the farm families struggled to support the
company as it faced stiff competition from the major ice cream brands. They were convinced that they needed to create a
unique product that could bolster and become synonymous with their company brand.
In 2007, Mercer’s created a true wine ice cream, a formula that contains five percent alcohol and is protected by trade
secrets. Working with state and federal agencies to create a new category of food product and driving the passage of special
legislation, Mercer’s expanded its commitment to its agricultural roots by additionally supporting New York State wine
growers and opening new avenues for the distribution of its traditional and new product lines.

Mercer’s Dairy was not able to secure financing from conventional lenders to initiate a marketing plan for the new
product and turned to Thomas Reynolds, vice president of NYBDC, for a financing solution.
“After several years of funding product development, the company found itself in a position where it had a great product
and a way to sell it, but lacked sufficient working capital to go out and market it,” said Reynolds. “NYBDC used the SBA
7(a) program and brought in Adirondack Economic Development Corporation to provide additional funding for working
capital to help Mercer’s restructure its debt so that it could free up the necessary working capital to market its products.”
Mercer’s has grown to offer a wide variety of dairy products including milk; hard, soft and organic ice creams; fat-free,
no-sugar-added ice cream; frozen yogurt and sherbet that are now sold to retail and food service markets outside of New
York State. Distributorships have been established on the East Coast as far south as Florida and out west to California.
Because of this growth, the company has expanded its full-time production workforce from 15 to 23, not including
expanded seasonal employment.
Offered in six flavors – Ala Port, Cherry Merlot, Chocolate Cabernet, Peach White Zinfandel, Red Raspberry
Chardonnay, Royal White Riesling – Mercer’s Wine Ice Cream was awarded the 2007 Winner of Best New Product at The
Great American Dessert Expo and the 2008 American Masters of Taste Gold Medal Endorsement from California Wine
Country. Mercer’s will soon be introducing a special limited-edition seasonal flavor – Holiday Spiced Wine Ice Cream
featuring a sweet red wine steeped with herbs and spices from Brotherhood Winery in Washingtonville, N.Y.
Statewide Zone Capital Corporation (SZCC) • Statewide Zone Capital Corporation of New York (SZCC), is a
privately owned loan fund committed to supporting the growth of jobs and economic opportunity in New York’s Empire Zones
by providing capital for new and existing businesses. This program provides flexible, creative and low cost financing for
businesses located in Empire Zones. This capital access program is available for working capital, acquisition and/or
improvement of real property and equipment.
A one-of-a-kind product reinvigorates a traditional
industry, changes laws and introduces a close-knit
community to the world
Quality Dairy
Farms Inc. dba
Mercer’s Dairy
Boonville, New York
Dalton Givens of Mercer’s Dairy, Tom Reynolds of NYBDC and Nicole Wright of Adirondack Economic
Development Corporation.

10 2010 Annual Report
In 1991, Aldona and Dariusz Skarzynski started a small business, Aldona Fire Protection, out of their apartment. That
business has grown to become a thriving enterprise that today is worth millions and competes on a national level for fire
systems installation and maintenance contracts. But it hasn’t all been easy for the husband and wife team. Last year,
NYBDC was able to provide assistance during a difficult transition period.
Originally created as a company that sold alarm log books, Aldona Fire Protection now installs, services, maintains and
monitors custom-designed fire alarms, closed circuit TV/surveillance cameras and other electronic life safety systems for
commercial and government clients. Until 1999, the Skarzynskis ran the company out of their home.
In 2007, the Skarzynskis decided it was time to construct a new facility that would significantly increase the size of their
location in Elmhurst, to which they had moved in 1999. Their plans called for a five-story, 21,700-square-foot building that
would eventually house a secure call center to handle alarm and emergency situations. They were able to secure a sizable
construction loan and moved into temporary office and warehouse space while demolition of their current site and
construction of the new building took place.
During the construction period, Dariusz became ill. Since he was the person overseeing construction, the project came to
a temporary halt and the construction loan expired. Although the lender provided a few 60-day extensions, it no longer
included the conversion to a permanent mortgage in the note.
However, Mario DiCerbo, senior vice president of Bank of America Merrill Lynch, and NYBDC Vice President Daniel
Vaccaro were able to put together a financing package to meet the Skarzynskis’ needs.
“Without a permanent financing solution, Aldona Fire Protection was about to lose the LEED Certified “Green” building
that they dreamed of building for so long,” said Vaccaro. “NYBDC, teaming with Bank of America on a first mortgage and
orchestrating an Empire State CDC SBA 504 second mortgage, came to the rescue. The new facility was built to ultimately
meet UL certification requirements for a central station, allowing the company to bid on certain government and bank
contracts that require in-house monitoring, as well as act as a system monitoring sub-contractor to other installers
nationwide, who do not have their own central stations, vastly expanding Aldona’s revenue potential.”
Bank of America Merrill Lynch provided a $1.616 million first mortgage and Empire State CDC provided SBA 504
project financing in the amount of $2 million to pay off the previous construction loan and lines of credit and provide a
second mortgage on the new building. In addition, NYBDC provided financing in the amount of $1.5 million.
“Dan Vaccaro came in and put us on the right track,” said Katarina Skarzynski, the couple’s daughter and an Aldona
vice president. “He was wonderful, very knowledgeable and he helped us a lot. Both Dan and Bank of America were very
easy to work with; it was a smooth transaction.”

Aldona Fire Protection has not yet completed the secure call center in the basement of the new building. But Katarina
Skarzynski said she believes it will be finished and operational by the end of 2011. When that happens, Aldona Fire will
add 20 new positions to the 15 it already employs.
NYBDC helps fire systems
company get back on track after
a project is stalled
Aldona Fire
Protection
Elmhurst, New York
New York Business Development Corporation • NYBDC is a consortium of banks committed to support
economic development and the growth of job opportunity in New York State by providing innovative loans to small businesses
with our lending partners. NYBDC provides government guaranteed and conventional loans.
Mario DiCerbo of Bank of America Merrill Lynch; Katarina Skarzynski, Dariusz Skarzynski and Aldona
Skarzynska of Aldona Fire Protection; and Daniel Vaccaro of NYBDC.

12 2010 Annual Report
NYBDC Foundation
Board of Directors
James J. Byrnes
Chairman
Tompkins Financial
Corporation
Ithaca, New York
Herbert G. Chorbajian
Retired Director
Charter One
Financial Corporation
Albany, New York
Thomas F. Goldrick, Jr.
Retired Chairman

State Bank of Long Island
Jericho, New York
Robert W. Lazar
Retired President
New York Business
Development Corporation
Albany, New York
Jeffrey M. Levy
Capital Region President
NBT Bank
Albany, New York
Patrick J. MacKrell
President & CEO
New York Business
Development Corporation
Albany, New York
Lenders of the Year
Community Partner
of the Year
NYBDC Lender of the Year
Greg Emminger
Empire State CDC: The 504 Company
Lender of the Year
Marybeth Kushner
CDC of Long Island
In the Community Partner Program, NYBDC works with
economic development entities and shares revenue on our joint
projects. We now have 82 Community Partners, many of which
are playing a significant role in the development of projects
financed by NYBDC or Empire State CDC: The 504 Company

and our lending partners.
This “Community Partner of the Year” award was presented to
CDC of Long Island in recognition of its commitment to our
partnership and its efforts to promote access to capital to New
York’s small businesses.
Nancy Reinhart of NYBDC and Marybeth Kushner of
JPMorgan Chase Bank
Pat MacKrell of NYBDC and Robert Larson of CDC of Long Island
Each of these bankers has worked extensively and
creatively with NYBDC to promote access to capital
for New York’s small businesses.
Chairman’s Leadership Award
The 504 Company
Empire State Certified Development Corporation
Board of Directors
Richard Bowman
President
Collision Experts Auto
Collision Centers, Inc.
Schenectady, New York
Jeffrey Bray
Retired Economic
Development Executive
Schenectady, New York
Gregory A. Briggs
Retired Senior Vice President
Bank of America
Syracuse, New York
Michelle L. Capone
Senior Project

Development Specialist
Development Authority
of the North Country
Watertown, New York
John A. Chiaramonte
Partner
Teal, Becker
& Chiaramonte, CPAs
Albany, New York
Herbert G. Chorbajian
Retired Director
Charter One
Financial Corporation
Albany, New York
Alfred F. Luhr, III
Senior Vice President
M&T Bank
Buffalo, New York
Patrick J. MacKrell
President & CEO
New York Business
Development Corporation
Albany, New York
Mark D. Morrison
Senior Vice President
KeyBank
Albany, New York
James E. Murphy
Senior Vice President
JPMorgan Chase Bank

Albany, New York
Noel Murphy
President
Celtic Tours
Albany, New York
Jeffery B. Rivenburg
Regional President
TD Bank
Latham, New York
Charles F. Ryan
Senior Vice President
HSBC Bank USA
New York, New York
Peter K. Cosgrove
Senior Vice President
First Niagara Bank
Albany, New York
Alfred D. Culliton
Chief Financial Officer
Erie County Industrial
Development Agency
Buffalo, New York
Bruce E. Ferguson
Administrative Director
Suffolk County Industrial
Development Authority
Hauppauge, New York
Michael J. Gill
Partner
GillWright Group

Riverdale, New York
James L. King
State Director
New York State Small Business
Development Center
Albany, New York
Jeffrey M. Levy
Capital Region President
NBT Bank
Albany, New York
Edie M. Longo
Deputy Director & CFO
Town of Hempstead
Industrial Development Agency
Hempstead, New York
Jim Byrnes, NYBDC Chairman of the Board; Michael Hein, Ulster
County Executive; and Pat MacKrell of NYBDC
Michael P. Hein, Ulster County Executive
The Chairman’s Leadership Award was presented to
Ulster County Executive Michael Hein for his efforts
to create the
Credit for Success – Second Look
Program
in Ulster County, developed to create access
to capital for businesses that fall just below traditional
lending guidelines. His initiative and vision resulted
in a unique program that provides opportunity for
creditworthy small businesses to access the funds
needed to start, grow or sustain operations.
New York Business Development Corporation 13

14 2010 Annual Report
SZCC
Statewide Zone Capital Corporation
Board of Directors
Douglas A. Asofsky
Vice President
Citigroup
Uniondale, New York
Douglas W. Barton
Director
Tioga County Department
of Economic Development
and Planning
Owego, New York
Mary C. Bintz
Senior Vice President
Bank of America
Merrill Lynch
Albany, New York
Jeffrey Bray
Retired Economic
Development Executive
Schenectady, New York
Daniel Burke
President
Glens Falls Region
NBT Bank
Glens Falls, New York
Robert J. Camoin

Principal
Camoin Associates
Saratoga Springs, New York
Michael Claisse
Vice President
Bank of New York Mellon
New York, New York
James E. Corey, III
Executive Vice President
Chemung Canal
Trust Company
Elmira, New York
Megan Daly
Deputy Director
Albany Local
Development Corporation
Albany, New York
Kathy L. Davis
Senior Vice President
Alliance Bank
Cortland, New York
Charles J. Kavanaugh
Certified Public Accountant
Albany, New York
Adoré Flynn Kurtz
President
The Development
Corporation
Plattsburgh, New York
Patrick J. MacKrell

President & CEO
New York Business
Development Corporation
Albany, New York
William Mannix
Executive Director
Town of Islip
Economic Development
Islip, New York
Richard W. Merzbacher
Retired Director
State Bank of Long Island
Jericho, New York
Frederick H. Quist
Zone Coordinator
Amsterdam-Florida-Glen
Empire Zone
Amsterdam, New York
Charles E. Robinson
Vice President
M&T Bank
Albany, New York
Robert W. Schwartz
President
Schwartz, Heslin Group
Latham, New York
Stephan von Schenk
Executive Vice President
The Adirondack
Trust Company

Saratoga Springs, New York
John Walker II
Chairman
Dunkirk-Sheridan
Empire Zone
Sheridan, New York
Donald J. Western
Vice President
Community Engagement and
Economic Development
Syracuse University
Syracuse, New York
“NYBDC is a critical
partner in providing
access to capital for New
York’s small businesses.
Since the beginning of the
fiscal crisis, NYBDC has
been a consistent resource
in meeting the financial needs of
creditworthy small businesses. We
applaud NYBDC and its stakeholders for
sustained excellence as a small business
lender.”
James L. King
State Director
New York State Small Business
Development Center
“The New York Bankers
Association is proud to

be an active partner with
the New York Business
Development
Corporation in support of
its critical role meeting
the credit needs of the State’s small
businesses. Most recently, we have joined
with the NYBDC and its innovative
‘Second Look – Credit for Success
Program.’The program, as it continues to
roll out across New York State, provides
small business owners with an important
alternative source of funds during this
very difficult economy.”
Michael P. Smith
President & CEO
New York Bankers Association
“Through the years, New York
Business Development
Corporation has been an
invaluable SBA lending resource.
We look forward to continue
working with NYBDC in the
coming months as the economy
improves and we help reshape the future of many
more small business owners.”
Jorge Silva-Puras
Regional Administrator
SBA Region II (New York, New Jersey,
Puerto Rico & U.S. Virgin Islands)

NYBDC
Corporate Officers
NYBDC
Stockholders
James J. Byrnes
Chairman of the Board
Bruce W. Boyea
Vice Chairman
Patrick J. MacKrell
President & CEO
Nancy A. Reinhart
Executive Vice President
& Chief Administrative Officer
Andrew M. Linehan
Executive Vice President
& Senior Loan Officer
James J. Conroy III
Senior Vice President
James J. Goldrick
Senior Vice President
Thomas K. McHale
Senior Vice President
Chester A. Sadowski
Senior Vice President
Michael A. Taylor
Senior Vice President
Steven M. Willard
Senior Vice President
Michael G. Zihal
Senior Vice President

Robert Beshaw
Vice President
& General Counsel
Owen F. Burns IV
Vice President & Controller
Richard A. Amsterdam
Vice President
Cedric A. Carter
Vice President
Carmine Fabio
Vice President
Kevin D. Gallagher
Vice President
Joan T. Gleason
Vice President
Stanley F. Grochocki
Vice President
John T. King
Vice President
Héctor Molina-Casillas
Vice President
Kevin G. O’Leary
Vice President
Thomas Reynolds
Vice President
Pennie L. Smith
Vice President
Steven Smith
Vice President
Daniel Vaccaro

Vice President
Linda Zou
Vice President
Kathleen M. Russom
Secretary
Tara J. Caroll
Assistant Vice President
Bryan C. Doxford
Assistant Vice President
John J. Hogan III
Assistant Vice President
Timothy C. Larson
Assistant Vice President
Sabrina N. Morton
Assistant Vice President
Amy Oates
Assistant Vice President
Ross Pancoe
Assistant Vice President
Rachel A. Wade
Assistant Vice President
Thomas Green
Assistant Treasurer
Joanne Karmazyn
Assistant Secretary
Diane McDonald
Assistant Secretary
Deborah Mercora
Assistant Secretary
The Adirondack Trust Company

The Bank of Castile
Bank of America
The Bank of Greene County
The Bank of New York Company, Inc.
Barclays Bank
Broadpoint Capital
Capital One Bank
Cattaraugus County Bank
Central Hudson Gas & Electric Corp.
Chamber of Commerce of Orange County
Citizens Bank
Chemung Financial Corporation
Chenango County Chamber
of Commerce, Inc.
Columbian Mutual Life Insurance Company
Combined Life Insurance Company
of New York
Community Bank
Citizens Communications
Council of Industry
Delaware & Hudson Railway Company
The Delaware National Bank of Delhi
Drof and Company
Economic Development Council
of the Southern Tier, Inc.
The Elmira Savings Bank
Federal Deposit Insurance Corp. (FDIC)
Finch, Barbara L.S.
First Niagara Bank
Flushing Savings Bank

Fulton Savings Bank
Global Crossing Noth America, Inc.
Glens Falls National Bank & Trust Company
Rochester Business Alliance
The Guardian Life Insurance Company
HSBC Bank USA
Homestead Financial Services
Hope Gas, Inc.
JPMorgan Chase Bank
JP Morgan Chase Community
Development Corporation
Jeffersonville Bancorp
Joseph Davis, Inc.
KeyBank
KeyCorp
KeySpan Corporation
Lincoln First Real Estate Credit Corporation
Manufacturers & Traders Trust Company
Mohawk Valley Chamber of Commerce
Montgomery County Chamber of Commerce
Mutual Life Insurance Company
of New York
NBT Bank
National Bank of Delaware County
NatWest Equity Corp.
New York Life Insurance Company
New York State Electric & Gas Corp.
NYSEG Retirement Benefit Plan
Niagara Mohawk Power Corporation
Northeastern New York Community Trust

Orange County Trust Company
PathFinder Bank
Phoenix Home Life Mutual Insurance Company
Pleasant Valley Wine Company
Procter & Gamble Pharmaceuticals, Inc.
ReliaStar Life Insurance Company
Rochester Gas and Electric Corporation
Security Mutual Life Insurance Company
of New York
Shults, David A.
Sovereign Bank
Starwood Hotels & Resorts Worldwide, Inc.
State Bank of Long Island
Steuben Trust Company
TD Bank
Teachers Insurance & Annuity Association
of America
Tioga State Bank
Tompkins Trust Company
Ulster Savings Bank
Verizon Communications
Wells Fargo
Wilber National Bank
New York Business Development Corporation 15

16 2010 Annual Report
Con-Tech Building Systems
For more than 20 years, Con-Tech
Building Systems has been successful in
the light industrial and commercial

construction industry, employing about 50
people in the off season and as many as 110
at the peak of the summer construction
season. Still, the firm’s business developer,
Barry Smith, knew there was great potential
in work as a prime contractor, rather than as
a subcontractor, for federal projects.
His experience seeking the help of the
North Country Procurement Technical
Assistance Center has been tremendously
positive, he said. “They helped us learn all
the ins and outs of federal contracts and
that has been a huge helping hand.”
Smith said the PTAC helped him learn
how the process works and where the
resources are to find out about federal
contracting opportunities. In addition,
Claire Seiferth at the PTAC assisted Con-
Tech with obtaining Small Business
Administration certification as a HUBZone
company. “The federal government is
required to set aside a certain amount of
work for small businesses,” Smith said,
“and now with the SBA certification, those
projects are more accessible to us.”
With the increased exposure to federal
projects and the increased accessibility
within the community that the PTAC has
helped Con-Tech gain, Smith said they are
projecting the company’s annual revenues

to double in three to four years.
North Country Procurement Technical Assistance Center (PTAC)
The North Country PTAC was established in October 2008 to support, guide and assist small businesses in the Central
and Northern New York Regions, as they endeavor to sell goods and services to the government. The program helps
businesses decipher and navigate the often complex maze of certifications, registrations and other requirements that a
business must complete to become eligible to sell to the government.
Since 2008, NYBDC has provided significant financial assistance to the North Country PTAC to support its efforts to
promote the development of the economy in its area of operations, which includes Fort Drum in Watertown, New York. It
works to expand business opportunities with the government that will lead to increased revenue for small business, job
opportunities, and the opportunity for businesses to start, sustain and grow operations.
The North Country PTAC also receives support from the Fort Drum Regional Liaison Organization, Empire State
Development, and the Greater Watertown-North Country Chamber of Commerce.
Darren Gotham, Con-Tech Building Systems

Pro Patria
Robert Clements, a retired Army
First Sargeant has a unique business –
he develops and produces shotgun
accessory kits for Special Operations
command that convert a standard
shotgun into a combat mission
payload-able shotgun system. The
result is a lighter, smaller weapon that
is reduced in length by anywhere from
nine to 13 inches.
When he first contacted Claire
Seiferth of the North Country
Procurement Technical Assistance
Center, Clements was in the pre-award
stage of a large federal contract and

was designated as a “single sole source
provider” for the weapons accessory
kit. Seiferth and the PTAC assisted him
with updating codes for a required
registration called the Central Contract
Registration. As the contract was being
executed, the PTAC assisted him with
the online invoicing system, the Wide
Area Workflow (WAWF), and helped
him make contact with a WAWF
representative who could help him with
the system.
“Without agencies like the PTAC, a
lot of companies don’t want to get into
working on federal contracts,”
Clements said. “PTACs are important
for small businesses because military
and government procurement is very
complicated.”
Although he and his wife are
currently the only employees of Pro
Patria, Clements is hoping to hire five
additional full-time and five part-time
employees in the spring to help him
fulfill an anticipated contract with the
U.S. Army.
Robert Clements, Pro Patria
New York Business Development Corporation 17

18 2010 Annual Report

Right Price Companies
As a commercial furniture dealer
that specializes in the sale of
remanufactured commercial furniture
and custom cabinetry, molding and
millwork, Right Price Companies is
able meet the needs of customers
looking to keep “green” by purchasing
reusable products. Substantial savings,
sometimes up to 40 percent of the cost
of buying new, can be achieved
through the purchase of remanu-
factured goods.
Company CEO Darin Price feels
Right Price has only reached “the tip of
the iceberg” in terms of potential
customers and is confident that his
customer base will continue to grow
rapidly as awareness of the advantages
of buying used, remanufactured
furniture and fixtures increases.
The North Country Procurement
Technical Assistance Center “has
provided huge assistance in getting us
involved in the federal marketplace,”
said Price. “They helped me prepare
for 8(a) certification and provided
helpful seminars and great one-on-one
assistance.” Once qualified for 8(a)
certification, a company is then eligible

for special assistance from the Small
Business Administration. “Qualifying
as an 8(a) participant makes us eligible
for sole source contract awards up to
$3.5 million and, more importantly, we
receive special training,” said Price.
Right Price recently was awarded
“single sole source provider” status for
a $112,000 project at Fort Drum and
Price credits the PTAC with helping
him win that contract and remain a
viable business.
“Any company doing business with
the federal government or New York
State should be working with their
local PTAC,” Price said.
Currently, Darin and his wife,
company President Paris Price, employ
five full-time employees at the six-
year-old company. With the growth
they are currently experiencing, the
Prices anticipate doubling in size in the
next year.
Darin Price, Right Price Companies

TJ Painting
Prior to starting her business, TJ
Painting, 10 years ago, Phyllis
Ferguson was, according to her own
description, a housewife. Her son was

working in the construction industry
and she decided that she wanted to
start her own company in order to
provide consistent employment for him
and other skilled, hardworking
individuals in her community.
With specialties in painting and
building rehabilitation and renovation,
TJ Painting has been successful and
currently employs 12 full-time
employees, half of whom have been
with Ferguson for five or more years.
Most of the work the firm has done has
been at Fort Drum.
Ferguson sought the assistance of
the North Country Procurement
Technical Assistance Center to help her
reach out to other subcontractors,
access appropriate federal contracts
and update and expand her company’s
profile, all of which led to additional
opportunities for government work.
She now has her eye on projects for
New York State and its municipalities
as well, and the PTAC is helping her
compile a new list for outreach to those
entities. In addition, the PTAC is
currently assisting TJ Painting with
obtaining Woman-Owned Business
certification.

With a typical project lasting three
to four months and the company
working on up to three projects at one
time, Ferguson is hoping to increase
the number of people she employs.
She anticipates that her employee base
will grow to 20 in the next two years.
Phyllis Ferguson, TJ Painting
New York Business Development Corporation 19

20 2010 Annual Report
COMBINED STATEMENTS OF FINANCIAL CONDITION
September 30, 2010 and 2009
COMBINED STATEMENTS OF OPERATIONS
Years Ended September 30, 2010 and 2009
Assets
Loans receivable, net
Cash
Restricted cash
Accrued interest receivable
Investments
Deferred tax benefit
Other assets
Total assets
Liabilities and Equity
Liabilities
Notes payable:
Members
New York State Common Retirement Fund
Bank lines of credit

Bank term loans
Other obligations
Total notes payable
Accrued interest payable
Accrued expenses and other liabilities
Total liabilities
Equity
Capital stock, no par value, authorized 500,000 shares; issued and outstanding of
217,700 shares, $5 stated value per share
Paid-in capital
Retained earnings
Accumulated other comprehensive income (loss)
Total stockholders' equity
Net assets of Empire State Certified Development Corporation
Total equity
Total liabilities and equity
$160,968,392
183,476
1,067,164
878,318
1,376,598
3,138,570
1,217,101
$168,829,619
$ 19,736,977
88,483,318
6,550,000
24,701,918
5,522,002
144,994,215

477,283
2,170,903
147,642,401
1,088,500
3,590,400
13,617,996
29,654
18,326,550
2,860,668
21,187,218
$168,829,619
$152,194,518
500,603
1,020,676
831,012
1,305,946
2,915,602
1,183,919
$159,952,276
$ 14,969,538
90,260,223
6,075,000
19,925,260
5,342,465
136,572,486
480,271
3,076,768
140,129,525
1,088,500
3,590,400

13,018,978
(10,827
17,687,051
2,135,700
19,822,751
$159,952,276
2010 2009
Interest income
Interest expense
Net interest income
Provision for loan losses
Net interest income after provision for loan losses
Fees and other income
Income before operating expenses
Operating expenses:
Salaries and employee benefits
Other expenses
Total operating expenses
Income before provision for income taxes
Provision for income taxes
Net income
$10,479,399
6,055,489
4,423,910
760,000
3,663,910
8,390,225
12,054,135
6,391,948
3,497,420

9,889,368
2,164,767
840,781
$1,323,986
$9,760,665
5,908,958
3,851,707
1,000,000
2,851,707
7,572,646
10,424,353
5,747,223
2,997,751
8,744,974
1,679,379
781,821
$ 897,558
2010 2009
See Notes to Combined Financial Statements
See Notes to Combined Financial Statements
)
COMBINED STATEMENTS OF CHANGES IN EQUITY
Years Ended September 30, 2010 and 2009
Balance at October 1, 2008
Comprehensive income:
Net income:
New York Business
Development Corporation
Empire State Certified
Development Corporation

Total net income
Other comprehensive income, net of tax:
Change in unrealized gains on investments
(net of related income tax benefit)
Total comprehensive income
Redemption of capital stock (190 shares)
Balance at September 30, 2009
Comprehensive income:
Net income:
New York Business
Development Corporation
Empire State Certified
Development Corporation
Total net income
Other comprehensive income, net of tax:
Change in unrealized gains on investments
(net of related income tax benefit)
Total comprehensive income
Balance at September 30, 2010
$1,089,450
–
–
–
(950
1,088,500
–
–
–
$3,604,808
–

–
–
(14,408
3,590,400
–
–
–
$12,935,402
83,576
–
–
–
13,018,978
599,018
–
–
$(17,400)
–
–
6,573
–
(10,827
–
–
40,481
$17,612,260
83,576
–
83,576
6,573

90,149
(15,358
17,687,051
599,018
–
599,018
40,481
639,499
1,321,718
–
813,982
813,982
813,982
–
2,135,700
–
724,968
724,968
–
724,968
$18,933,978
83,576
813,982
897,558
6,573
904,131
(15,358
19,822,751
599,018
724,968

1,323,986
40,481
1,364,467
Capital
Stock
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Items
Total
Stockholders'
Equity
ESCDC
Net
Assets
Total
Equity
NOTE 1 — ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Organization: In 1955, by a special act, the New York State Legislature created New York Business
Development Corporation (NYBDC). In 1981, Empire State Certified Development Corporation
(ESCDC), an affiliate of NYBDC through common management, was organized, pursuant to Section
402 of the Not-for-Profit Laws of the State of New York, to assist business concerns through
financings under the U.S. Small Business Administration's Certified Development Company (Sections
503 and 504) Program.
NYBDC is also associated with Statewide Zone Capital Corporation of New York (Statewide), a
privately-owned loan and investment fund, organized in 1999, whose capital is available to promote

the expansion and growth of businesses in New York’s Empire Zones. The operations of Statewide
are managed by NYBDC, which also owns approximately 1.5% of Statewide’s outstanding common
stock. NYBDC’s investment in Statewide is accounted for under the cost method of accounting.
Together, NYBDC, ESCDC and Statewide act as a complement to banks in providing long-term
working capital, equipment, and real estate loans to a variety of businesses located in New York
State, either in participation with, or as an adjunct to, the banking industry. NYBDC’s loans are
generally disbursed in amounts up to $2.0 million and are secured by borrowers' assets and, in
some instances, U.S. Small Business Administration (SBA) guarantees. A borrower's creditworthiness
is evaluated on a case-by-case basis, with the amount of collateral obtained based upon
management's credit evaluation of the borrower. Interest rates are either fixed or variable, and
maturities range up to 15 years, depending upon the purpose of the loan.
Reporting Policy: The combined financial statements include the accounts of NYBDC and ESCDC
(collectively referred to as the “Company”). All material intercompany accounts and transactions
have been eliminated.
Loans and Allowance for Loan Losses: Loans receivable are stated at the amount of unpaid
principal, reduced by an allowance for loan losses. Interest on loans is calculated utilizing the simple
interest method. Accrual of interest is discontinued on a loan at such time as management believes,
after considering economic/business conditions and collection efforts, that the borrowers' financial
condition is such that collection of interest is doubtful. Impaired loans, or loans for which it is
probable the Company will be unable to collect all contractual principal and interest payments, are
generally recorded at the present value of expected future cash flows, discounted at the loan's
effective interest rate, or the fair value of the collateral. Interest payments received on such loans
are applied as a reduction of the loan principal balance. A portion of the loan portfolio is designated
as a Portfolio Collateral Account and is pledged against certain borrowings (see Note 4).
The allowance for loan losses is an amount that management believes will be adequate to absorb
losses on existing loans that may become uncollectible, based on evaluations of the collectibility of
loans and prior loan loss experience. The evaluations take into consideration such factors as
changes in the nature and amount of the loan portfolio, overall portfolio quality, review of specific
problem loans, current economic conditions that may affect the borrowers' ability to pay, collateral,
and the extent of SBA guarantees.

Restricted Cash: Restricted cash, which principally includes money market cash equivalents, is
comprised of net draw downs and borrower loan payments pending disbursement under the New
York State Common Retirement Fund Loan (see Note 4). Such cash is designated as the Uninvested
Collateral Account and pledged against these borrowings.
Investments: Investments include both non-marketable equity investments and marketable
securities (see Notes 3 and 7). The Company classifies its debt and marketable equity securities into
held-to-maturity, trading, or available-for-sale categories. Debt securities are classified as held-to-
maturity when the Company has the positive intent and ability to hold the securities to maturity. Debt
securities for which the Company does not have the intent or ability to hold to maturity are classified
as available for sale. Marketable securities that are bought and held principally for the purpose of
selling them in the near term are classified as trading securities and are reported at fair value, with
unrealized gains and losses recognized in earnings. The Company does not currently maintain held-
to-maturity or trading portfolios, and as such, equity securities are classified as available-for-sale
and are carried at fair market value, with the unrealized gains and losses, net of tax, included in the
determination of comprehensive income and reported in stockholders’ equity.
Other Assets: Other assets include furniture and equipment, prepaids, and certain other assets.
See Notes to Combined Financial Statements
)) ) )
)
$1,088,500 $3,590,400 $13,617,996 $29,654 $18,326,550 $2,860,668 $21,187,218
New York Business Development Corporation 21

22 2010 Annual Report
COMBINED STATEMENTS OF CASH FLOWS
Years Ended September 30, 2010 and 2009
Cash Flows From Operating Activities
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
Provision for loan losses

Deferred tax benefit
Changes in:
Other assets
Other liabilities
Net cash provided by operating activities
Cash Flows From Investing Activities
Loans disbursed, net of participations
Loan payments received
Change in restricted cash
Changes in other assets
Net cash used in investing activities
Cash Flows From Financing Activities
Net borrowings on bank and other obligations
Redemption of capital stock
Net cash provided by financing activities
Net (decrease) increase in cash
Cash, beginning of year
Cash, end of year
Supplemental Disclosures of Cash Flow Information
Cash payments for:
Interest
Income taxes
$1,323,986
185,630
760,000
(237,255
(165,362
(908,853
958,146
(34,249,868

24,715,994
(46,488
(116,640
(9,697,002
8,421,729
–
8,421,729
(317,127
500,603
$ 183,476
$6,057,573
$1,339,200
$ 897,558
159,411
1,000,000
(167,551
5,224
(845,971
1,048,671
(33,890,627
22,937,797
528,383
(151,341
(10,575,788
9,587,644
(15,358
9,572,286
45,169
455,434
$ 500,603

$5,885,960
$1,033,986
2010 2009
Fees and Other Income: Fees and other income are principally derived from servicing and
processing fees earned by ESCDC (approximating $7,093,000 and $6,194,000 in the fiscal years
ended September 30, 2010 and 2009, respectively), fees paid by Statewide (approximating
$267,000 and $257,000 in the fiscal years ended September 30, 2010 and 2009, respectively), and
certain closing fees (approximating $235,000 and $417,000 in the fiscal years ended September 30,
2010 and 2009, respectively). Fees are recognized as revenue at the time the related services are
performed by the Company.
Income Taxes: Income taxes are provided for the tax effects of transactions reported in the
financial statements and consist of taxes currently due and deferred taxes using the asset and
liability method of accounting for income taxes (see Note 5). Deferred taxes are recognized for
differences between the basis of assets and liabilities for financial statement and income tax
reporting purposes. These differences, which primarily relate to the future tax benefits associated
with recording loan losses, also include amounts attributable to certain employee benefits and
deferred compensation. Deferred tax benefit (an asset account) represents the net future tax return
consequences of those differences, which will either be deductible or taxable when the assets and
liabilities are recovered or settled. As changes in tax laws or rates are enacted, deferred tax assets
are adjusted through the provision for income taxes.
Comprehensive Income: Other comprehensive income consists of net income and other gains and
losses affecting shareholders’ equity that, under generally accepted accounting principles, are
excluded from net income. For the Company, such items are comprised principally of unrealized
gains and losses on certain equity transactions, net of applicable income taxes, approximating a gain
of $40,500 and $6,500 at September 30, 2010 and 2009, respectively.
Use of Estimates and Assumptions: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the financial statements.
Estimates also affect the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

Reclassifications: Certain items in the 2009 financial statements have been reclassified to
conform with the current year presentation.
Subsequent Events: Subsequent events have been evaluated through October 25, 2010, the date
the financial statements were available to be issued.
NOTE 2 — LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES
Loans receivable, as presented on the combined statements of financial condition, consist of the
following:
The allowance for loan losses account is increased by a provision for loan losses, which is charged
to expense, and reduced by losses, net of recoveries. Because of uncertainties inherent in the
estimation process, management’s estimate of credit losses in the loan portfolio and the related
allowance is subject to change, and the amount of such change is not reasonably possible to
estimate.
September 30
Loans receivable
Less participations sold
Less allowance for loan losses
Loans receivable, net
$260,045,346
(92,178,890
(6,898,064
$160,968,392
$226,178,843
(67,382,782
(6,601,543
$152,194,518
2010 2009
See Notes to Combined Financial Statements
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A schedule of the changes in the allowance for loan losses account follows:
Loans on which the accrual of interest has been discontinued approximated $8,933,000 (or
$4,495,000 net of SBA guarantees) and $8,347,000 (or $4,524,000 net of SBA guarantees) at
September 30, 2010 and 2009, respectively.
ESCDC loans serviced for the SBA are not included in the accompanying statements of financial
position. The unpaid principal balance on these loans approximated $727.8 million and $498.4
million at September 30, 2010 and 2009, respectively.
NOTE 3 — INVESTMENTS
Investments include both non-marketable equity investments and marketable securities
approximating $1,376,000 and $1,306,000 at September 30, 2010 and 2009, respectively. Non-
marketable equity investments include the Company’s investment in Statewide (approximating
$400,000 in both years) and certain other private equity investments which are valued at cost, an
amount which approximates fair value.
Marketable securities, which are principally held as a funding offset for the Company directors’

deferred compensation plan, include approximately $937,000 in marketable debt and equity
securities valued at quoted market prices. At both September 30, 2010 and 2009, the fair value of
the Company’s marketable securities approximated the corresponding liability under these plans.
Accordingly, the Company’s risk of loss on its marketable securities is de minimus.
Generally Accepted Accounting Principles for fair value measurements defines fair value,
establishes a framework for measuring fair value, and provides disclosures about fair value
measurements. Fair value measurements emphasize that fair value is a market-based
measurement, not an entity-specific measurement, and states that a fair value measurement should
be determined based on assumptions that market participants would use in pricing an asset or
liability.
Fair value measurement accounting establishes a hierarchy for inputs used in measuring fair value
that maximizes the use of observable inputs and minimizes the use of unobservable inputs by
requiring that the most observable inputs be used when available. The hierarchy is classified into
three general levels: Level 1 inputs are quoted prices in active markets for identical assets or
liabilities; Level 2 inputs include data points that are observable, such as quoted prices for similar
assets or liabilities in active markets, quoted prices for identical assets or similar assets or liabilities
in markets that are not active, and inputs (other than quoted prices) such as interest rates and yield
curves that are observable for the asset and liability, either directly or indirectly; Level 3 inputs are
unobservable data points for the asset or liability, and include situations where there is little, if any,
market activity for the asset or liability.
The following table presents the fair value hierarchy for the Company’s investments:
NOTE 4 — NOTES PAYABLE
Member Borrowings
Members consist principally of banks which have applied for membership and have been
accepted by NYBDC’s Board of Directors. Many members are also stockholders of NYBDC. Funds are
obtained from members who, at the time they become members, agree to lend money to NYBDC
upon call, subject to limits provided in the basic legislation which established the Company. The loan
limit available from members was $55.4 million at September 30, 2010.
Calls on members are made for maturities of one year with the September 30, 2010 outstanding
loan balances maturing August 1, 2011. Interest is payable twice a year, on February 1 and August

1. Member borrowings generally provide for interest at the lowest prime commercial rate or 50 to
275 basis points above the 30 day LIBOR (London Interbank Offered Rate). All member loans are
unsecured.
New York State Common Retirement Fund Borrowings
NYBDC has entered into two loan agreements with the New York State Common Retirement Fund
(the "Fund") under which the Fund has made available to NYBDC an aggregate principal amount not
to exceed $200,000,000. The proceeds of these loans may be used by NYBDC to extend credit to
small businesses operating in the State of New York.
Under the agreements, borrowings under the loans bear interest at the following annual rate: (i)
the aggregate of the 30-day net yield on the “Vision Treasury Money Market Fund” on uninvested
funds and (ii) between 0.50% and 1.50% (principally dependent upon the nature of the SBA
involvement) over the applicable treasury note rate for comparable original maturities, on the
principal amount of each outstanding loan (the Portfolio Collateral Account).
At September 30, 2010 and 2009, the outstanding balances on these loans were $88,483,318 and
$90,260,223, respectively. The principal payments on the loans generally parallels the underlying
loan between NYBDC and its borrower, over a maximum of 15 years.
The loans are collateralized by NYBDC’s right, title and interest in both the Uninvested Collateral
Account and the Portfolio Collateral Account. In addition, the loan agreements provide for various
restrictive covenants, such as restrictions on incurring new secured indebtedness or liens (except for
certain office equipment and furniture), restrictions on the payment of dividends, and restrictions on
providing any guarantees.
Bank Line of Credit Borrowings
NYBDC has available lines of credit with various banks (all of which are members and
stockholders) totaling $38.5 million at September 30, 2010. The amounts outstanding on these lines
at September 30, 2010 and 2009 were $6,550,000 and $6,075,000, respectively. The line of credit
agreements, all of which are unsecured, are renewed annually and generally provide for interest at a
LIBOR based index rate.
Bank Term Borrowings
NYBDC has entered into agreements with two financial institutions, both of which are members
and stockholders, which provide for various short and long-term borrowings. The overall cost of

funds for these borrowings, the substantial portion of which provide for fixed rates, approximated
4.8% at September 30, 2010. The term agreements provide for total available credit of $41.7
million, of which amounts outstanding were $24,701,918 and $19,925,960 at September 30, 2010
and 2009, respectively. The agreements, with original terms ranging from 4 to 20 years, provide for
annual principal reduction payments, dependent upon the amount of borrowings, which
approximated $1.5 million in the year ended September 30, 2010. Future annual principal reduction
payments, which will generally parallel the underlying loans between NYBDC and its borrowers, are
scheduled to approximate $2.0 million in the year ended September 30, 2011.
Other Obligations
Other obligations include advances from Statewide which relate to the initial funding requirements
of Statewide’s loans. These advances bear interest and provide for repayment terms which generally
parallel Statewide’s underlying loan terms.
NOTE 5 — INCOME TAXES
The components of the provision for income taxes are as follows:
As of September 30, 2010 and 2009, deferred tax assets, which are recognized for deductible
temporary differences, principally related to the allowance for loan losses and deferred
compensation and approximated $3,125,000 and $2,916,000, respectively. There were no deferred
tax liabilities recognized for taxable temporary differences. Deferred tax assets are included as an
asset in the combined statements of financial condition.
The differences between income taxes computed under federal statutory rates and effective rates
is primarily attributable to state and city taxes, and certain tax adjustments.
NYBDC accounts for uncertain tax positions according to guidance issued by the Financial
Accounting Standards Board (“FASB”). This guidance clarifies the accounting for income taxes by
prescribing the minimum recognition threshold an income tax position is required to meet before
being recognized in the financial statements and applies to all tax positions. Each income tax
position is assessed using a two step process. A determination is first made as to whether it is more
likely than not that the income tax position will be sustained, based upon technical merits, upon
examination by the taxing authorities. If the income tax position is expected to meet the more likely
than not criteria, the benefit recorded in the financial statements equals the largest amount that is
greater than 50% likely to be realized upon its ultimate settlement.

NYBDC believes that there are no tax positions taken or to be taken that would significantly
increase or decrease unrecognized tax benefits within twelve months of the reporting date. None of
NYBDC’s federal or state income tax returns is currently under examination by the Internal Revenue
Service (IRS) or state authorities. However, fiscal years 2007 and later remain subject to examination
by the IRS and New York State.
NOTE 6 — EMPLOYEE BENEFIT PLANS
The Company maintains a salary reduction 401(k) plan, a Supplemental Executive Retirement Plan
(SERP), and, prior to 2008, a defined benefit pension plan.
The salary reduction 401(k) plan allows employees to defer and contribute a portion of their salary
into the plan with the employer matching the employees' contributions up to 6% and providing for
certain profit sharing contributions, subject to limitations imposed by the Internal Revenue Service.
The plan is funded on a current basis. The expense for the plan was approximately $381,000 and
$368,000 for the years ended September 30, 2010 and 2009, respectively.
September 30
Balance, beginning of year
Provision for loan losses
Recoveries credited to the allowance
Losses charged to the allowance
Balance, end of year
$6,601,543
760,000
63,930
(527,409
$6,898,064
$6,135,974
1,000,000
80,786
(615,217
$6,601,543
2010 2009

)
)
Available for sale securities
Non-marketable equity securities
Total Assets at fair value
$937,369
–
$937,369
–
–
–
–
439,229
$439,229
$937,369
439,229
$1,376,598
Assets at Fair Value as of September 30, 2010
Level 1 Level 2 Level 3 Level 4
Available for sale securities
Non-marketable equity securities
Total Assets at fair value
$834,964
–
$834,964
–
–
–
–
470,982

$470,982
$834,964
470,982
$1,305,946
Assets at Fair Value as of September 30, 2009
Level 1 Level 2 Level 3 Level 4
Current taxes
Federal
State and city
Deferred tax (benefit)
Net provision
$972,464
105,572
(237,255
$840,781
$832,175
117,197
(167,551
$781,821
2010 2009
))
New York Business Development Corporation 23