NYBDC Annual Report final

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					Lending Partner
New York State

                  New York Business Development Corporation
                                             Annual Report 2006

Adirondack Bank                                Elmira Savings and Loan                 Oneida Savings Bank
Adirondack Trust Company                       Elmira Savings Bank                     Ontario National Bank of Clifton Springs
Alliance Bank                                  Empire State Bank                       Orange County Trust Company
Alpine Capital Bank                            Evans National Bank of Angola           Oswego County National Bank
Amalgamated Bank of New York
American Community Bank                        First National Bank of Dryden           Partners Trust Bank
                                               First National Bank of Groton           PathFinder Bank
Apple Bank for Savings
                                               First National Bank of Jeffersonville   Patriot Federal Bank
Axa Equitable Life Assurance Society
                                               First National Bank of Long Island      Peoples National Bank
Astoria Federal Savings & Loan
                                               First National Bank of Scotia           Pioneer Savings Bank
Ballston Spa National Bank                     First Niagara Bank                      Provident Bank
Banco Popular                                  First State Bank                        Putnam County National Bank of Carmel
Bank Hapoalim                                  Five Star Bank & Trust                  Putnam County Savings Bank
Bank of Akron                                  Flushing Savings Bank
                                               Fulton Savings Bank                     Redwood Bank
Bank of America
                                                                                       Rhinebeck Savings Bank
Bank of Bennington                             Genesee Regional Bank                   Ridgewood Savings Bank
Bank of Castile                                Glens Falls National Bank               Riverside Bank
Bank of Cattaraugus                            Gotham Bank of New York                 Rome Savings Bank
Bank of China                                  Gouverneur Savings & Loan               Rondout Savings Bank
Bank of Greene County                          Greater Buffalo Savings Bank
Bank of Holland                                                                        Safra National Bank
Bank of Millbrook                              HSBC Bank USA                           Saratoga National Bank
Bank of New York                               Habib American Bank                     Savannah Bank
Bank of Richmondville                          Hamptons State Bank                     Sawyer Savings Bank
Bank of Smithtown                              Hudson United Bank                      Signature Bank
Bank of Tokyo - Mitsubishi UFJ Trust Company   Hudson Valley Bank                      Solvay Bank
Bank of Utica                                                                          State Bank of India
                                               Independence Community Bank
Beacon Federal Savings Bank                                                            State Bank of Long Island
                                               Israel Discount Bank of New York
Berkshire Bank                                                                         Sterling National Bank
Bridgehampton National Bank                    JPMorgan Chase Bank                     Steuben Trust Company
                                               Jamestown Savings Bank                  Stissing National Bank of Pine Plains
Canandaigua National Bank                                                              Suffolk County National Bank
Capital Bank & Trust Company                   KeyBank
Carver Federal Savings Bank                                                            TD Banknorth
Cathay Bank                                    Legacy Banks                            The Berkshire Bank (NYC)
Cattaraugus County Bank                        Lyons National Bank                     Tioga State Bank
Cayuga Lake National Bank                                                              Tompkins Trust Company
                                               M&T Bank
Champlain National Bank                                                                Trustco Bank
                                               Mahopac National Bank
Chemung Canal Trust Company                                                            Tupper Lake National Bank
                                               Maple City Savings Bank
Citibank, N.A.                                 Medina Savings and Loan Association     Ulster Savings Bank
Citizens Bank                                  Metropolitan Life Insurance Company     Union State Bank
City & Suburban Federal Savings Bank           Mitsubishi UFJ Trust & Banking Corp.    United States Trust Company
Commerce Bank
                                               NBT Bank                                Upstate National Bank
Community Bank
Community Bank of Orange                       National Bank of Coxsackie              Valley National Bank
Community Bank of Sullivan County              National Bank of Delaware County        Victory State Bank
Community Capital Bank                         National Bank of Stamford
Country Bank                                   National Bank of Vernon                 Wachovia Bank
                                               National Union Bank of Kinderhook       Walden Federal Savings & Loan
Dairylea Cooperative, Inc.                     New York Commercial Bank                Walden Savings Bank
Delaware National Bank of Delhi                New York Community Bank                 Wallkill Valley Federal Savings & Loan
Deutsche Bank                                  North Fork Bank                         Watertown Savings Bank
Dime Savings Bank of Williamsburgh             Northfield Savings Bank                 Wilber National Bank
     on Operations

Incredible support from our lending partners
+ Dedicated staff
+ Passion for small business
= Another great year at NYBDC
                                                    Patrick J. MacKrell, President and CEO, and
                                                    James J. Byrnes, Chairman of the Board, NYBDC

     The company continues to benefit from the      •   Loans receivable increased 10.8% to
 momentum of years of success and careful               $439,677,751 despite unprecedented
 planning. Building on that foundation, during          prepayments.
 FY 2006 we explored new partnerships, oppor-       •   Income increased 7% to $8.8 million.
 tunities and ways to accomplish our mission.       •   Strong performance of the NYBDC loan
     We are pleased to report that there were a         portfolio and management of our problem
 number of exciting developments at NYBDC               loans allowed us to reduce our provision
 during the year. Among them were: a new                for loan losses and still maintain our
 office in Syracuse to serve Central New York;          allowance at record levels.
 an additional $100 million loan with the New       •   Our recoveries exceeded write-offs
 York State Common Retirement Fund to                   by $70,000.
 support long-term fixed rate loans; expansion          Our financial success would have little
 of our loan activities on Long Island to include   meaning, however, if we could not deploy it to
 the SBA 504 program; and expanded staffing         support economic development and access to
 in our New York City and Long Island offices.      capital for New York’s small businesses and the
     More than $1.9 million in pre-tax revenue      communities they support. In FY 2006 we
 represents a 31% increase over last year and a     made a difference with innovative programs,
 new record. This result is the product of strong   reductions in fees and support of economic
 performance on many fronts, including the          development initiatives, including:
 following:                                         •   Payment of the third-party lender fees on
 •   Loan disbursements increased 16.7% to              SBA 504 mortgage loans, resulting in a
     $103 million.                                      substantial reduction in SBA 504 loan fees.

                                                                                       (continued on page 2)

                                                                         2006 New York Business Development Corp.1
    on Operations (continued from page 1)

    •      A major sponsorship of the Central Upstate            We also supported many other organizations,
           Regional Alliance – Essential Connections.org      including the Broome County Urban League,
           Emerging Business Competition – intended           S.C.O.R.E chapters and chambers of commerce
           to stimulate job creation, economic develop-       across New York state, New York Wired for
           ment and entrepreneurial activity in Central       Education (an inner city literacy pilot), The
           New York.                                          Gateway to Entrepreneurial Tomorrows, the
    •      Implementation of a pilot program to support       Hudson Valley Bankers Association, the Catskill
           construction financing for SBA 504 loans in        Area Hospice Hope Foundation and the Long
           partnership with our member banks.                 Island Partnership.
    •      A major sponsorship of the Albany-Colonie             Empire State CDC was the leading SBA 504
           Chamber of Commerce Business Plan                  lender in each of the three SBA districts in New
           Competition.                                       York state and continued its strong support of our
    •      Sponsorship of the Rockland Community              lending partners. Our many enhancements to this
           Business Week in partnership with Rockland         program this year included the addition of a loan
           Economic Development Corporation.                  committee in Long Island to consider SBA 504
    •      Contribution of $108,000 to the NYBDC              loan applications. Across New York state we set
           Foundation, a tax-exempt foundation which          the standard for SBA 504 loan processing and
           supports economic development and charitable       administration.
           organizations through gifts and grants.               None of our goals could be accomplished
    •      A major sponsorship of the New York State          without the support of our lending and community
           Economic Development Council Annual                partners. The support extends far beyond loan
           Meeting.                                           referrals and shared risk. We call on our lending

                        Loan Advances                                   Loan Approvals
                                                                            Total (in millions)
                          Total (in millions)

                $100                                               $175
                 $90                                               $150


                 $75                                               $125
                 $60                                               $100
                 $45                                                $75
                 $30                                                $50
                 $15                                                $25
                                                                          2002   2003 2004 2005 2006
                        2002   2003 2004 2005 2006

2       Annual Report
partners to participate in our loan committees and     excellence. Whether the task at hand is creative
to provide us with lines of credit to support our      loan structuring or challenging collections activity,
loan programs. Our community partners provide          their performance is noteworthy in all respects.
us with insight on local projects and are valuable     There is no limit to what we can accomplish!
resources to the small businesses we support – all        FY 2007 brings with it many challenges and
with a common goal of promoting the growth of          opportunities. We look forward to the continued
jobs and opportunity in New York.                      success of NYBDC and our positive impact on
   A special note of thanks to our directors. We       New York.
have had a busy, demanding year addressing
issues, policies and initiatives as we prepare
NYBDC for a successful future. Each director has
unselfishly given time, energy and tremendous
                                                       Patrick J. MacKrell          James J. Byrnes
talents to provide the advice, guidance and
                                                       President & CEO              Chairman of the Board
direction so essential to our success. This year
                                                       New York Business            New York Business
Frank Lourenso retired from the NYBDC Board            Development Corp.            Development Corp.
of Directors with our thanks and gratitude for
many years of service to our company. We also
welcomed Robert Como, Michael Orsino and
Robert Curley to our board and look forward to
their participation in our future.
   Before closing, we must recognize the
tremendous contributions of our staff. They are
passionate about our mission and committed to

         Loan Portfolio Managed
                   Total (in millions)





               2002   2003 2004 2005 2006

                                                                           2006 New York Business Development Corp.   3
    Service, Professionalism

        New York Business Development Corp. continues to earn its reputation for excellence, service
    and professionalism. The borrowers on this and the following pages are a sample of the wide range
    of industries and businesses that benefit from NYBDC loans in partnership with banks.
       These companies are growing in New York state, retaining or creating jobs here and providing
    products and services that add to the economic health of their communities and the state. They are
    industrial companies, service businesses and professional firms in urban neighborhoods, rural towns
    and all kinds of communities in between.
        The SBA 504 program, administered through NYBDC’s affiliate, Empire State CDC, continues
    to be the major revenue driver for the company. It also provides a major opportunity to share the risk
    with banks in financing deserving companies. As is evident by their comments in this annual report,
    bankers recognize that Empire State CDC lenders are very knowledgeable about all aspects of the
    SBA 504 program and are a valuable, creative resource to help structure deals.

       Rite Price Gas & Food Mart, Inc.
                                        Rome, New York

       “Everyone at Empire State
       CDC is professional and
       competent. I have worked
       with John King on a
       couple of transactions, and
       he is very good to work
       with. I work with a number
       of CDCs throughout the
       East Coast, and Empire
       State CDC continues to be
       one of my favorites to
       work with.”
                     Hector DaCosta
                    Bank of America

                                      Satwant Bhatti and Harjinder Bhatti (in photo), father and son, sought to purchase a
                                      Sunoco franchise gas station and convenience store at 1600 East Dominick Street in
                                      Rome. It would operate under the name Rite Price Gas & Food Mart. Bank of
                                      America provided $371,500 and Empire State CDC provided SBA 504 financing of
                                      $222,900 for purchase of the real estate, purchase and installation of two underground
                                      gasoline tanks and other equipment.

4   Annual Report
    Effectively with Banks

  Jody (in photo below) and Mark McHale formed Beautiful Reflections, Inc. to provide upscale salon and spa
  services in rural Springfield, and looked for a strategic location that would provide high retail traffic and space
  to expand. They found it at 13 East Main Street, two doors from the most upscale restaurant in town and
  within walking distance of a local bed and breakfast. NYBDC and HSBC Bank provided the $167,700 first
  mortgage through an SBA 7(a) loan that covered purchase of the building and some renovations. HSBC also
  provided $232,000 for renovations, supplies and inventory, a sound system and advertising.

                                                                                                             “Mike Taylor got involved
                                                                                                             from the outset, and it was
Beautiful Reflections, Inc.                                                                                  really helpful. . . . There’s
                                                                                                             nobody better in terms of
                  Springfield, New York
                                                                                                             SBA programs. . . . We
                                                                                                             could not have financed
                                                                                                             this deal on our own, and
                                                                                                             with the NYBDC partner-
                                                                                                             ship, we were able to do
                                                                                                             it. They were tremendous.”
                                                                                                                          Steve Swanson
                                                                                                                            HSBC Bank

                                                                                                                     Infinite Care
                                                                                                                     Albany, New York

 “When we have a
 situation where we can
 sell the 504 product to the
 client, any of the NYBDC
 lenders are extremely
 helpful in making the
 client comfortable with
 that transaction. . . . We
 have each other’s cell
 phone numbers and are
 very comfortable about
 calling at any point.”
             Heather Ford
                                     Recognizing an important need in the community, Demetris Barrett (in center of photo)
                                     established Infinite Care, a start-up day care center, to care for children considered at risk.
                                     She sought financing to purchase and renovate a building at 43 Quail Street in a low-
                                     income neighborhood of Albany, and to buy equipment and supplies. KeyBank and
                                     Empire State CDC helped her get started. KeyBank financed a first mortgage of $74,000
                                     and Empire State CDC a $51,800 SBA 504 loan for building purchase and renovation.
                                     NYBDC and KeyBank also provided an SBA 7(a) loan of $60,000 for new equipment.

                                                                                            2006 New York Business Development Corp.   5
         Loan Volume Together
                                                                        Ithaca Materials Research & Testing, Inc.
                                                                                                               Lansing, New York
   Our loan officers are adept at properly structuring loan
   packages to allow businesses to utilize economic development
   programs to their maximum potential. Ithaca Materials Research
   & Testing, Inc., an independent testing laboratory owned by
   Stephen Ruoff (at right), is an excellent example. The company’s
   real estate expansion at the Lansing Business and Technology Park
   was financed by a Tompkins Trust first mortgage for $950,000
   and an Empire State CDC SBA 504 second mortgage for
   $320,000. Equipment was financed by the Broome County IDA,
   Tompkins County and Empire State Development (New York’s
   economic development agency). Empire State CDC developed
   the loan structure and coordinated the underwriting for all
   groups to minimize the time required by the customer to process
   multiple applications. In so doing, Empire State CDC not only
   provided second mortgage financing but also a cohesive economic
   development benefits package and delivery system to retain a
   successful small business in New York.
  “Jim Conroy has been extraordinarily helpful in putting projects
  together. He makes the process easier because he’s so very well
  organized. . . . We think very highly of NYBDC as an organization.”
                                                  Paul Banfield
                                              Tompkins Trust Co.

Vermont Timber Frames, Inc.
Cambridge, New York
                                                                                 NYBDC’s Community Partners are valuable
                                                                                 referral sources across the state. Washington
                                                                                 County Local Development Corp. (LDC), for
                                                                                 example, referred Vermont Timber Frames, Inc.
                                                                                 in 2002. The company, owned by Paul Martin and
“Curt Solomon is very                                                            Tom Harrison (left to right), had always cut
knowledgeable about                                                              joinery for its timber frame structures by hand, a
SBA loan programs. He
                                                                                 process that took four people six weeks. With a
always goes above and
beyond to be accommo-                                                            long backlog of orders, however, the owners
dating, supportive and                                                           identified state-of-the-art automated production
responsive in getting                                                            equipment that would fabricate the same joinery
projects closed. I
                                                                                 with two people in eight hours. NYBDC and
thoroughly enjoy
working with Curt.”                                                              TD Banknorth provided a $500,000 SBA 7(a)
        Mike O’Connell                                                           term loan, and the Washington County LDC
         TD Banknorth                                                            provided an additional $89,000 so the company
                                                                                 could purchase the new equipment, positioning it
                                                                                 for rapid growth. That growth occurred, and the
                                                                                 company was ready for new expansion in just
                                                                                 a few years. TD Banknorth, NYBDC and
                                                                                 Empire State CDC came through again and
                                                                                 approved loans for the company’s planned
    6    Annual Report                                                           expansion in 2007.
     SBA 504 Expertise
                                         Progressive Medical Associates, P.C.
                                          New York, New York
Cardiologists Marc Nolan and John
Minutillo (left to right) had been
practicing as Progressive Medical
Associates, P.C., when they decided to
establish a permanent home for their
practice and to expand their services.
They wanted to purchase the condo they
were leasing at 84th Street and East End
Avenue in Manhattan, and they hoped to
buy and renovate the neighboring condo
in the same building. Citibank provided a
$907,000 first mortgage, while Empire
State CDC provided a $700,000 SBA 504
second mortgage. The purchases will
make it possible to add 15 employees to
the practice.

Carabie Corporation                                            “NYBDC made it possible for Progressive Medical Associates to
Mount Vernon, New York                                         purchase and renovate two medical condos as their practice
                                                               outgrew their space. They are wonderful when it comes to closings,
                                                               and we have a great working relationship. Overall, we have a great
                                                               partnership with NYBDC.”
                                                                                                                         Nancy Savis
                                                                                                                       Citibank, N.A.

                                                               Carabie Corporation provides commercial and industrial
                                                               painting services, focusing on the painting of rehabilitated
                                                               steel used in bridges and tunnels in metropolitan New York.
                                                               After being in business for 30 years, Ernest Sanchez and his
                                                               daughters, JoAnn Miano (at left) and Linda Bautista (at
                                                               right), formed a realty company to acquire commercial
                                                               property located in an Empire Zone at 216 South Terrace
                                                               Avenue, Mount Vernon. Purchase of the buildings and land
                                                               was possible through a $1,072,500 first mortgage from
                                                               JPMorgan Chase Bank and an $858,000 SBA 504 second
                                                               mortgage through Empire State CDC.

                                                               “My experience with several loan officers at Empire
                                                               State CDC is that they are always professional,
                                                               thoughtful and supportive. We’ve always had a good
                                                               relationship . . . interacting with our clients, as well as
                                                               each other.”
                                                                                                     Bruce Vaughan
                                                                                               JPMorgan Chase Bank

                                                                                            2006 New York Business Development Corp.   7
      Companies Expand in New York State
Pyramid Floor Covering, Inc., is a family business owned by three brothers. The company works
with every type of flooring underlayment as well as with the entire spectrum of finish flooring
products (e.g. wood, carpet, tile, linoleum). The recent expansion of the underlayment division
required more space to house additional equipment and materials. The company purchased a
                                                                                                    “NYBDC turns
21,820-square-foot industrial building at 81 Seaview Boulevard in Port Washington. State Bank of
                                                                                                    proposals fast.
Long Island provided $1,515,000 and Empire State CDC provided an SBA 504 loan of $1,127,000.        They are very
From left to right: Richard J. O’Brien, first vice president, State Bank of Long Island; Brian      service oriented
DeGaray, principal, Pyramid Floor Covering, Inc.; and James J. Goldrick, vice president, NYBDC.     and have proven to
                                                                                                    be a solid partner
                                                                                                    with us. . . . We got
                                                                                                    them involved and,
                                                                                                    in a short time, they
                                                                                                    made contact and
                                                                                                    visited the site. Then
                                                                                                    we had a continuous
                                                                                                    open dialog with all
                                                                                                    three parties.”
                                                                                                       Richard O’Brien
                                                                                                          State Bank of
                                                                                                           Long Island
Pyramid Floor Covering, Inc.
Port Washington, New York

      To expand their business, McAllister Sign, Inc., Mark and
      Christine McAllister (in photo at right) wanted to
      purchase the building at 1194 Ridge Road in Webster
      where they were leasing space. This would allow them to
      spread out and make use of the full 3,100 square feet in
      the two buildings on the site. Empire State CDC and
      M&T Bank teamed up to provide financing for the real
      estate purchase, with M&T Bank financing 50 percent
      ($162,500) and Empire State CDC – through the SBA 504
      program – 40 percent ($130,000).

                       “Empire State CDC paying the Third-Party
                       Lender Fee on this 504 deal was ‘make or
                       break’ for the deal. . . . Any time I work with
                       them, they respond immediately to my calls,
                       and I’ve never waited as long as 24 hours.”                          McAllister Sign, Inc.
                                                   Michael Richards                         Webster, New York

                                                        M&T Bank
      Annual Report

From left, front row: Richard Amsterdam, Daisy Osorio, Daniel Vaccaro, Stanley Grochocki, Chet Sadowski,
Deborah Mercora, Richard Grant, Kevin O’Leary, James Goldrick and Linda Zou. Row 2: Diane McDonald, David
Terrenzio, Janna Czernicki, Patrick MacKrell, Rachel Aiello, Kathleen Russom, Joanne Karmazyn, Curt Solomon
and Peter Van Nostrand. Row 3: Kathleen VanAnden, Amy Esposita, Colleen Miller, Allison Kowalski, Michael
Taylor, Marlies Capobianco, Nancy Reinhart, Sabrina Morton, Renee Williams, Thomas Reynolds and Lynda
DeBell. Row 4: Thomas Green, Shelley Smith, Lisa Lundquest, Andrew Linehan, Jill O’Dell, Cedric Carter,
Michael Kinum and Owen Burns. Row 5: Steven Willard, John King, Steven Smith, Thomas McHale, James
Conroy and Michael Zihal.

                                                                                2006 New York Business Development Corp.   9
NYBDC New York Business Development Corp.
      Board of Directors

Howard M. Applebaum             Sanford A. Belden               G. Gary Berner                    Mary Bintz              Mark C. Boyce                Bruce W. Boyea
  Executive Vice President           Consultant                Executive Vice President        Senior Vice President            Director             Chairman, President & CEO
   Sterling National Bank          Community Bank               & Chief Lending Officer          & Market Manager         N.Y. Life Investment          Security Mutual Life
    New York, New York             Dewit, New York               First Niagara Bank              Bank of America           Management, LLC                Insurance Company
                                                                  Buffalo, New York             Albany, New York          New York, New York           Binghamton, New York

   James J. Byrnes               Robert L. Como                  Robert Curley                F. Edward Devitt           Linda Dickerson                 Hugh Donlon
     Chairman & CEO               Senior Vice President               Chairman                      President                Hartsock                    Managing Director
   Tompkins Trustco Inc.         JPMorgan Chase Bank                Citizens Bank              Devitt Management          Executive Director           U.S. Business Banking
     Ithaca, New York             New York, New York              Albany, New York                 & Associates        Cortland County Business            Citibank, N.A.
                                                                                              Montgomery, New York      Development Corporation      Long Island City, New York
                                                                                                                          Cortland, New York

  Daryl R. Forsythe            Charles A. Gargano          Thomas F. Goldrick, Jr.          Daniel J. Hogarty, Jr.      Hugh A. Johnson                 Robert W. Lazar
         Chairman                    Commissioner                     Chairman                The Troy Savings Bank           Chairman                 Executive-in-Residence
       NBT Bancorp             New York State Department      State Bank of Long Island       Charitable Foundation        Johnson Illington            University at Albany
     Norwich, New York         of Economic Development            Jericho, New York               Troy, New York            Advisors, LLC                Albany, New York
                                  New York, New York                                                                       Albany, New York

 Patrick J. MacKrell            Brian T. McMahon                 Carl E. Meyer                 Allen J. Naples            Michael Orsino                   Walter Rich
     President & CEO                  President                   President & COO              Regional President       President, Capital Region         President & CEO
    New York Business          New York State Economic           Central Hudson Gas                M&T Bank                   KeyBank N.A.           New York, Susquehanna and
    Development Corp.            Development Council            & Electric Corporation         Syracuse, New York           Albany, New York         Western Railway Corporation
     Albany, New York             Albany, New York             Poughkeepsie, New York                                                                  Cooperstown, New York

   Michael P. Smith              George Strayton            Christopher J. Taylor                Nina Tyzik            Maryann M. Winters
     President & CEO              President & CEO          Executive Vice President & COO   Division General Manager   Certified Public Accountant
New York Bankers Association       Provident Bank               Hudson Valley Bank          HSBC Consumer Lending        Sirchia & Cuomo, LLP
    New York, New York           Montebello, New York            Yonkers, New York                New York State       East Syracuse, New York
                                                                                                Latham, New York

 10     Annual Report
       Empire State Certified Development Corporation
       Board of Directors
Debbie Bogdanski                              Herbert G. Chorbajian                       Jeffrey M. Levy                                   Mark D. Morrison
Vice President, Orange County Chamber         Slingerlands, New York                      Capital Region President, NBT Bank                Senior Vice President, KeyBank
  of Commerce                                                                             Albany, New York                                  Albany, New York
Newburgh, New York                            Peter K. Cosgrove
                                              Senior Vice President, First Niagara Bank   Kelly A. Lovell                                   James E. Murphy
Jeffrey Bray                                  Albany, New York                            President, Center for Economic Growth             Vice President, JPMorgan Chase Bank
Executive Vice President, Fulton County EDC                                               Albany, New York                                  Albany, New York
Johnstown, New York                           Bruce E. Ferguson                           Alfred F. Luhr, III
                                              Administrative Director, Suffolk County                                                       Madeline B. Taylor
John Chiaramonte
                                                                                          Senior Vice President, M&T Bank
                                               Industrial Development Agency                                                                President, Albany-Colonie Regional
                                                                                          Amherst, New York
Partner, Teal, Becker & Chiaramonte, CPAs     Hauppauge, New York                                                                             Chamber of Commerce
                                                                                          John E. Mack III

Albany, New York                                                                                                                            Albany, New York
                                                                                          Hilton Head Island, South Carolina

       Statewide Zone Capital Corporation
       Board of Directors

Henry H. Auffarth                             Anne Conroy                                 Carl A. Florio                                    Deborah H. McAtee
Managing Director, Senior Vice President      President, Dutchess County Economic         Regional President, First Niagara Bank            Business Banking Account Representative
Citibank                                        Development Corporation                   Hudson, New York                                  M&T Bank

                                                                                          Carl Hum
Harrison, New York                            Poughkeepsie, New York                                                                        Watertown, New York

Michael P. Brassel                            William D. Danko, Ph.D.                     Director, Mayor’s Office of Industrial &
                                                                                                                                            Richard W. Merzbacher
                                                                                            Manufacturing Businesses
Administrative Vice President                 Associate Professor of Marketing                                                              President, State Bank of Long Island
                                                                                          New York, New York
Glens Falls National Bank                     SUNY Albany School of Business                                                                Jericho, New York
Glens Falls, New York                         Albany, New York                            Brian E. Keating
                                                                                          Executive Vice President, HSBC Bank USA           Robert W. Schwartz
Daniel Burke                                  Kathie Davis                                Buffalo, New York                                 President, Schwartz, Heslin Group
President & CEO, TD Banknorth                 Senior Vice President, Alliance Bank                                                          Latham, New York
Glens Falls, New York                         Cortland, New York                          Patrick J. MacKrell
                                                                                          President & CEO                                   Stephan von Schenk
Michael Claisse                               Walter Dixie                                New York Business Development Corporation         Executive Vice President
Vice President, The Bank of New York          Executive Director, South West Economic     Albany, New York                                  The Adirondack Trust Company
                                                                                          John E. Mack, III

New York, New York                              Business Resource Center                                                                    Saratoga Springs, New York
                                              Syracuse, New York
                                                                                          Hilton Head Island, South Carolina

        Corporate Officers
 James J. Byrnes                               Michael G. Zihal                            Kevin G. O’Leary                                  Richard A. Amsterdam
 Chairman of the Board                         Senior Vice President                       Vice President                                    Assistant Vice President

 Bruce W. Boyea                                Michael L. Kinum                            Shelley D. Smith                                  Marlies M. Capobianco
 Vice Chairman                                 Vice President and General Counsel          Vice President                                    Assistant Vice President

 Patrick J. MacKrell                           Peter Van Nostrand                          Curt V. Solomon                                   Cedric A. Carter
 President & CEO                               Vice President and Treasurer                Vice President                                    Assistant Vice President

 David A. Terrenzio                            James J. Conroy III                         Michael A. Taylor                                 Timothy C. Larson
 Executive Vice President                      Vice President                              Vice President                                    Assistant Vice President
 and Senior Loan Officer
                                               James J. Goldrick                           Daniel Vaccaro                                    Thomas L. Reynolds
 Andrew M. Linehan
                                               Vice President                              Vice President                                    Assistant Vice President

 Senior Vice President                         Stanley F. Grochocki                        Steven M. Willard                                 Steven L. Smith
                                               Vice President                              Vice President                                    Assistant Vice President
 Nancy A. Reinhart                             John T. King                                Linda Zou                                         Deborah A. Mercora
 Senior Vice President
                                               Vice President                              Vice President                                    Assistant Secretary

 Chet Sadowski                                 Thomas K. McHale                            Kathleen M. Russom
 Senior Vice President                         Vice President                              Secretary

                                                                                                                             2006 New York Business Development Corp.        11
  NYBDC   Regional Loan and Advisory Committees

Binghamton Region                              Elmira Region                                     David Manzelmann
                                                                                                 Senior Vice President
                                                                                                                                                   Robert Jussen
                                                                                                                                                   Senior Vice President & Executive Credit Officer
                                                                                                 Partners Trust Bank                               HSBC Bank USA
Ronald Lesch *                                 Thomas Savoldy *                                  Utica, New York                                   New York, New York
Vice President, Partners Trust Bank            Vice President & Regional Manager, M&T Bank
Binghamton, New York                           Endicott, New York                                James F. Sullivan                                 Mark Noto
                                                                                                 Vice President, Rome Savings Bank                 Senior Vice President, Banco Popular
Ronald G. Goodwin                              Richard Carr                                      Rome, New York                                    New York, New York
Vice President, NBT Bank                       Senior Vice President
                                                                                                 Ben Ziskin
Vestal, New York                               Chemung Canal Trust Company
                                               Elmira, New York
                                                                                                 Vice President, First Niagara Bank
Douglas Gulotty
President & CEO, Wilber National Bank          Robert Fisher
                                                                                                 Amsterdam, New York
                                               President & CEO, Tioga State Bank
                                                                                                 Nassau-Suffolk Region
Oneonta, New York
                                               Spencer, New York                                                                                   Alfred F. Luhr, III *
Ralph Kelsey
                                                                                                                                                   Senior Vice President, M&T Bank

Senior Vice President, Tioga State Bank
                                               Stephen Hoyt                                      John Garvey *
                                                                                                                                                   Amherst, New York

                                                                                                                                                   John Cinquino
Spencer, New York                              Senior Vice President, Tompkins Trust Company
                                                                                                 Senior Vice President, North Fork Bank
                                               Ithaca, New York
                                                                                                 Melville, New York                                First Vice President, Commercial Corporate
Glenn Small                                                                                                                                        Banking, First Niagara Bank
                                                                                                 Doug Asofsky
                                               Mid-Hudson Region
President-Southern Division, M&T Bank                                                                                                              Buffalo, New York
Binghamton, New York                                                                             Senior Vice President, Citibank, N.A.
                                                                                                 Uniondale, New York                               Brian D. Donahue
                                               Michael H. Graham *                               Frederick C. Braun, III
                                                                                                                                                   Senior Vice President, Chief Credit Officer

Capital District-
                                                                                                                                                   Community Bank
                                               Vice President, M&T Bank                                                                            Olean, New York
                                                                                                 Executive Vice President

Champlain Region
                                               Fishkill, New York
                                                                                                 State Bank of Long Island
                                                                                                 Jericho, New York                                 Dennis P. Farrell
                                               Robert Ambrose                                                                                      Senior Vice President, HSBC Bank USA
Anthony Lanzillo *                             Vice President, Walden Savings Bank               Steven P. Cavaluzzo                               Buffalo, New York
Senior Vice President, KeyBank                 Montgomery, New York                              Vice President, The Bank of New York
Albany, New York                                                                                 Garden City, New York                             William R. Glass
                                               Paul Calogerakis                                                                                    Senior Vice President, Evans National Bank
Thomas Amell                                   Senior Vice President, KeyBank Corporate          Brian A. Foster                                   Hamburg, New York
                                                                                                 First Vice President, Business Banking Division
                                                                                                                                                   Sharon Lochocki
Senior Vice President, Citizens Bank           Banking
Albany, New York                               White Plains, New York                            Independence Community Bank
                                                                                                 Melville, New York                                Senior Vice President, KeyBank

Mary Bintz                                     James Davenport
                                                                                                                                                   Buffalo, New York
                                                                                                 Theresa Kelly
Senior Vice President & Market Manager         Vice President, Rondout Savings Bank

                                                                                                                                                   Northern Region
                                                                                                 Senior Vice President, Flushing Savings Bank
Bank of America                                Kingston, New York
                                                                                                 Lake Success, New York
Albany, New York
                                               Gerald J. Klein, Jr.                              Robert Stromberg
Peter Clemente                                 Executive Vice President, Chief Lending Officer
                                                                                                                                                   Michelle D. Pfaff *
                                                                                                 Vice President, JPMorgan Chase                    Vice President, Community Bank
Senior Vice President, HSBC Bank USA           Mahopac National Bank                             New Hyde Park, New York
Albany, New York                               Brewster, New York                                                                                  Watertown, New York

Richard Ferguson                                                                                 New York City Region                              Thomas G. Cesta
                                               Mohawk Valley Region
                                                                                                                                                   Vice President, HSBC Bank USA
Vice President, The Adirondack Trust Company
                                                                                                                                                   Watertown, New York
Saratoga Springs, New York
                                                                                                 Henry H. Auffarth *
                                               John R. Bradley *                                 Senior Vice President & Managing Director         Bradley Clark
James Jednak                                   Executive Vice President, NBT Bank                Citibank, N.A.
                                                                                                                                                   President, Watertown Savings Bank
Vice President, M&T Bank                       New Hartford, New York                            Harrison, New York
                                                                                                                                                   Watertown, New York
Albany, New York

                                               Rocco F. Arcuri, Sr.                              Peter A. Appello                                  Thomas Penn
Beth Muthersbaugh                              Executive Vice President                          Senior Vice President, Market Manager             Vice President, Commercial Loan Officer
Vice President, First Niagara Bank             Adirondack Bank                                   Small Business Banking, Bank of America           Gouverneur Savings & Loan
Albany, New York                               Utica, New York                                   New York, New York                                Alexandria Bay, New York

Jeffrey Rivenburg                              Kevin Kent                                        Richard Eng                                       Steven M. Pierce
Executive Vice President, TD Banknorth         Vice President, Community Bank                    Vice President, Flushing Savings Bank             Vice President, KeyBank
Latham, New York                               Boonville, New York                               Bayside, New York                                 Watertown, New York

                                                                                                                                                                  (continued on next page)

    12      Annual Report
Rochester Region                                               Syracuse Region                                       Westchester-Rockland Region
Robert L. Lowenthal, Jr. *                                     F. Mathew Zlomek *                                    Patrick Doulin *
Senior Vice President, Canandaigua National Bank & Trust Co.   Senior Vice President, HSBC Bank USA                  Senior Vice President, HSBC Bank USA
Canandaigua, New York                                          Syracuse, New York                                    Nyack, New York

Walter Roman                                                   Lee De Amicis                                         Carl A. Capuano
Vice President, HSBC Bank USA                                  Administrative Vice President                         Senior Vice President, Provident Bank
Rochester, New York                                            M&T Bank                                              Montebello, New York
                                                               Syracuse, New York
Richard H. Ferrari                                                                                                   Daniel Harris
Vice President, First Niagara Bank                             John F. Devlin                                        Executive Vice President, Hudson Valley Bank
Rochester, New York                                            Vice President, PathFinder Bank                       Yonkers, New York
                                                               Oswego, New York
Deborah A. Urtz                                                                                                      James O. Harte
Vice President, First Niagara Bank                             James V. Finochio, Jr.                                Senior Vice President, The Bank of New York
Rochester, New York                                            Senior Vice President & Chief                         White Plains, New York
                                                               Lending Officer, Solvay Bank
David Watson                                                   Solvay, New York
                                                                                                                     Thomas Linehan
Corporate Risk Manager, Five Star Bank
                                                               Alison K. Miller
                                                                                                                     Area Manager, Citibank, N.A.
Warsaw, New York                                                                                                     Harrison, New York
                                                               Vice President, First Niagara Bank
Russell Williamson                                             Fayetteville, New York
Senior Vice President, Ontario National Bank                                                                         * Denotes Committee Chairman
Clifton Springs, New York

NYBDC   Agricultural Loan and Advisory Committee

Richard H. Porter                                              Edward Coates                                        Hans Kunze
Vice President, HSBC Bank USA                                  Vice President, Agricultural Lending, NBT Bank       Vice President, Five Star Bank
Watertown, New York                                            Norwich, New York                                    Warsaw, New York

Clair J. Britt, Jr.                                            David De La Vergne                                   Thomas M. Shephard
Executive Vice President, Lyons National Bank                  Senior Vice President, Bank of Castile               President, Agri-Edge Development, Dairylea Cooperative, Inc.
Lyons, New York                                                Perry, New York                                      Syracuse, New York

NYBDC   Charitable Foundation
        Board of Directors

Herbert G. Chorbajian                                          Patrick J. MacKrell                                  Christopher J. Taylor
Slingerlands, New York                                         President & CEO, NYBDC                               Executive Vice President & COO, Hudson Valley Bank
                                                               Albany, New York                                     Yonkers, New York
Thomas F. Goldrick, Jr.
Chairman, State Bank of Long Island                            John E. Mack, III
Jericho, New York                                              Hilton Head Island, South Carolina

Robert W. Lazar                                                Walter Rich
Executive-in-Residence                                         President & CEO, New York, Susquehanna and Western
University at Albany                                           Railway Corporation
Albany, New York                                               Cooperstown, New York

                                                                                                                          2006 New York Business Development Corp.           13
SBA  Pinnacle Award

Recently, the U.S. Small Business Administration awarded its FY 2006 Pinnacle Award to Empire State
CDC as the lender that approved the most SBA 504 loans in the New York City District, which covers
New York City, Long Island and the lower Hudson Valley. Empire State CDC approved 82 loans totaling
$54,762,000. Pictured below are from left: Steven Preston, SBA Administrator; David A. Terrenzio,
Executive Vice President and Senior Loan Officer, NYBDC; Chet Sadowski, Senior Vice President,
NYBDC; and William Manger, Jr., SBA Regional Administrator.

“The New York Bankers                                     “NYBDC is an important partner in
Association, in cooperation with                          economic development throughout New York
its member banks throughout the                           state. Its lending services help small
state, are proud partners with the                        businesses realize their dreams, create jobs
New York Business Development                             and contribute to the quality of life in their
Corporation. This partnership is                          communities. The effectiveness and
playing a vital role in preserving and enhancing          continued growth of NYBDC’s programs are a reflection of
the economic vitality of the business community,          its employees and leaders. The New York State Economic
thereby making New York state a better place to           Development Council and our members strongly value our
live and work. ”                                          partnership with NYBDC.”
        – Michael P. Smith                                         – Brian McMahon
           President & CEO                                            President, New York State Economic
          New York Bankers Association                                Development Council

14    Annual Report
NYBDCStockholders 2006
Adirondack Trust Company         Economic Development          KeyBank                            Procter & Gamble
                                  Council of the Southern                                           Pharmaceuticals, Inc.
Bank of America                                                KeyCorp
                                  Tier, Inc.
Bank of Castile                                                KeySpan Corporation                ReliaStar Life Insurance
                                 Elmira Savings Bank                                                Company of New York
Bank of Greene County                                          M&T Bank
                                 Federal Deposit Insurance                                        Rochester Gas & Electric
Bank of New York                   Corp. (FDIC)                Mohawk Valley Chamber
Barclays Bank                                                   of Commerce
                                 Finch, Barbara L.S.                                              Security Mutual Life
Cattaraugus County Bank                                        Montgomery County
                                 First Albany Corporation                                           Insurance Company of
                                                                Chamber of Commerce
Central Hudson Gas &             First Niagara Bank                                                 New York
 Electric Corporation                                          MONY Financial Services
                                 Flushing Savings Bank                                            Shults, David A.
Chamber of Commerce of                                         National Bank of Stamford
                                 Fulton Savings Bank                                              Starwood Hotels & Resorts
 Orange County                                                 NatWest Equity Corporation
                                 Glens Falls National Bank                                          Worldwide, Inc.
Chemung Financial                 & Trust Company              NBT Bancorp, Inc.
 Corporation                                                                                      State Bank of Long Island
                                 Global Crossing               New York Life Insurance
Chenango County                                                 Company                           Steuben Trust Company
                                  North America, Inc.
 Chamber of Commerce                                                                              TD Banknorth
                                 Greater Rochester Metro       New York State Electric &
Citizens Bank                     Chamber of Commerce           Gas Corporation                   Teachers Insurance &
Citizen’s Communications         Guardian Life Insurance       Niagara Mohawk, a                    Annuity Association of
Columbian Mutual Life             Company of America            National Grid Company               America
 Insurance Company               HSBC Bank USA                 North Fork Bank                    Tioga State Bank
Combined Life Insurance          Homestead Financial           Northeastern New York              Tompkins Trust Company
 Company of New York              Services                      Community Trust
Community Bank                                                                                    Tupper Lake National Bank
                                 Hope Gas, Inc.                Orange County Trust
Council of Industry              Independence Community         Company                           Ulster Savings Bank
Courtland Investments, Inc.        Bank                        Partners Trust Bank                Union State Bank
Delaware and Hudson              JPMorgan Chase Bank           PathFinder Bank                    Verizon Communications
 Railway Company                 JPMorgan Community            Phoenix Home Life Mutual
                                   Development Corporation                                        Wachovia Bank
Delaware National                                                Insurance Company
 Bank of Delhi                   Jeffersonville Bancorp                                           Washington Mutual Bank
                                                               Pleasant Valley Wine
Drof & Company                   Joseph Davis, Inc.              Company                          Wilber National Bank

“It is always a pleasure to work with the                    “We at SBA share NYBDC’s goals of adding
dedicated staff of NYBDC to create good                      jobs and enriching our communities through
jobs with our small business partners.                       assistance to small business. We appreciate
 Although it is fun to ‘hit home runs’ with                  NYBDC’s, and its affiliate Empire State
employers like AMD, most of the jobs that                    CDC’s, participation in SBA’s 7(a) and 504
are produced to meet the needs of our                        programs in 2006, and their commitment to
citizens come from ‘hitting singles’ with small business     spur economic development in New York.”
deals like the ones we do with NYBDC.”                               – B. J. Paprocki
         – Kenneth A. Green                                            Syracuse District Director
           President                                                   U.S. Small Business Administration
           Saratoga Economic Development Corporation

                                                                                      2006 New York Business Development Corp.   15
                                                                                 Combined Statements of Financial Condition
                                                                                               September 30, 2006 and 2005
                                                                                                          2006                2005
Loans receivable, net                                                                            $ 116,386,894       $ 102,469,422
Cash                                                                                                   189,006             503,625
Restricted cash                                                                                        762,500           2,067,763
Accrued interest receivable                                                                            740,638             640,143
Deferred tax benefits                                                                                2,619,309           3,035,642
Other assets                                                                                         2,139,542           3,518,978
                Total assets                                                                     $ 122,837,889       $ 112,235,573
Liabilities and Equity
   Notes payable:
     Members                                                                                     $     8,500,000     $     8,500,000
     New York State Common Retirement Fund                                                            59,918,829          56,238,898
     Bank lines of credit                                                                             19,500,000          21,000,000
     Bank term loans                                                                                  10,412,866           1,729,216
     Other obligations                                                                                 4,913,570           5,073,496
                Total notes payable                                                                  103,245,265          92,541,610
   Accrued interest payable                                                                              476,327             404,199
   Accrued expenses and other liabilities                                                              2,349,915           3,527,839
                Total liabilities                                                                    106,071,507          96,473,648
   Capital stock, no par value, authorized 500,000 shares; issued and outstanding 218,872;
    $5 stated value per share                                                                        1,094,360           1,094,360
   Paid-in capital                                                                                   3,673,098           3,673,098
   Retained earnings                                                                                11,552,147          10,660,021
   Accumulated other comprehensive items                                                               (17,400)             12,516
                Total stockholders’ equity                                                          16,302,205          15,439,995
Net assets of Empire State Certified Development Corporation                                           464,177             321,930
                Total equity                                                                        16,766,382          15,761,925
                Total liabilities and equity                                                     $ 122,837,889       $ 112,235,573

                                                                                             See Notes to Combined Financial Statements.

                                                                                         Combined Statements of Operations
                                                                                   Years Ended September 30, 2006 and 2005
                                                                                                          2006              2005
Interest income                                                                                  $     9,215,893     $     8,312,995
Interest expense                                                                                       5,550,019           4,678,550
Net interest income                                                                                    3,665,874           3,634,445
Provision for loan losses                                                                                150,000             600,000
Net interest income after provision for loan losses                                                    3,515,874           3,034,445
Fees and other income                                                                                  5,154,242           4,576,830
Income before operating expenses                                                                       8,670,116           7,611,275
Operating expenses:
   Salaries and employee benefits                                                                      4,537,450           4,652,770
   Other expenses                                                                                      2,200,474           1,459,946
                Total operating expenses                                                               6,737,924           6,112,716
Income before provision for income taxes                                                               1,932,192           1,498,559
Provision for income taxes                                                                               734,299             743,901
Net income                                                                                       $     1,197,893     $       754,658

                                                                                             See Notes to Combined Financial Statements.
16   Annual Report
                                                                                  Combined Statements of Changes in Equity                                     Years Ended September 30, 2006 and 2005
                                                                                                                                        Other                          Total                 ESCDC
                                                                  Capital              Paid-in             Retained                 Comprehensive                  Stockholders’              Net                   Total
                                                                  Stock                Capital             Earnings                     Items                         Equity                 Assets                 Equity
Balance at September 30, 2004           $ 1,149,400                                $ 4,363,960 $10,059,095                            $       4,058          $      15,576,513             $168,198 $ 15,744,711
Comprehensive income:
    Net income:
       New York Business
          Development Corporation                 –                                                –             600,926                            –                   600,926                        –           600,926
       Empire State Certified
          Development Corporation                 –                                                –                     –                          –                             –           153,732              153,732
             Total net income                                                                                                                                                                                      754,658
    Other comprehensive items
       Unrealized gain on investments,            –                                                –                     –                    8,458                         8,458                      –               8,458
          net of taxes
               Total comprehensive income                                                                                                                              609,384              153,732     763,116
Redemption of capital stock (11,058 shares) (55,290)                                  (694,000)                                                                       (749,290)                   –    (749,290)
Issuance of capital stock (50 shares)           250                                      3,138           –                                       –                       3,388                    –       3,388
Balance at September 30, 2005           $ 1,094,360                                $ 3,673,098 $10,660,021                            $     12,516           $      15,439,995             $321,930 $15,761,925
Comprehensive income:
    Net income:
       New York Business
          Development Corporation                 –                                                –        1,055,646                               –                1,055,646                         –         1,055,646
       Empire State Certified
          Development Corporation                 –                                                –                     –                           –                            –           142,247              142,247
             Total net income                                                                                                                                                                                    1,197,893
    Other comprehensive items
       Unrealized loss on investments,
          net of taxes                            –                                                –                     –                 (29,916)                    (29,916)                   –     (29,916)
             Total comprehensive income                                                                                                                              1,025,730              142,247   1,167,977
Dividends declared                                 –                                         –    (163,520)                                   –                       (163,520)                   –    (163,520)
Balance at September 30, 2006           $ 1,094,360                                $ 3,673,098 $11,552,147                            $ (17,400)             $      16,302,205             $464,177 $16,766,382
                                                                                                                                                                     See Notes to Combined Financial Statements.

Note 1. Organization and Significant Accounting Policies                                                           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, and the extent of SBA guarantees.
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),                  Restricted Cash: Restricted cash, which is principally comprised of money market cash equivalents, is
an affiliate of NYBDC through common management, was organized, pursuant to Section 402 of the Not-                comprised of net draw downs and borrower loan payments pending disbursement under the New York
for-Profit Laws of the State of New York, to assist business concerns through financings under the U.S.            State Common Retirement Fund Loan (see Note 3). Such cash is designated as the Uninvested Collateral
Small Business Administration's Certified Development Company (Sections 503 and 504) Program.                      Account and pledged against these borrowings.
     NYBDC is also associated with Statewide Zone Capital Corporation of New York (Statewide), a
privately-owned loan and investment fund, organized in 2000, whose capital is available to promote the             Fees and Other Income: Fees and other income are principally derived from servicing and processing
expansion and growth of businesses in New York’s participating Empire Zones. The operations of                     fees earned by ESCDC (approximating $3,917,000 and $3,495,000 in the fiscal years ending September
Statewide are managed by NYBDC, which also owns approximately 1.5% of Statewide’s outstanding                      30, 2006 and 2005, respectively), fees paid by Statewide (approximating $234,000 and $215,000 in the
common stock. NYBDC’s investment in Statewide is accounted for under the cost method of accounting.                fiscal years ending September 30, 2006 and 2005, respectively), and certain closing fees (approximating
     Together, NYBDC, ESCDC and Statewide act as a complement to banks in providing long-term working              $366,000 and $268,000 in the fiscal years ending September 30, 2006 and 2005, respectively).
capital, equipment, and real estate loans to a variety of businesses located in New York State, either in par-
                                                                                                                   Income Taxes: Income taxes are provided for the tax effects of transactions reported in the financial
ticipation with, or as an adjunct to, the banking industry. NYBDC’s loans are generally disbursed in
                                                                                                                   statements and consist of taxes currently due and deferred taxes (see Note 4). Deferred taxes are
amounts up to $1.5 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             recognized for differences between the basis of assets and liabilities for financial statement and income tax
basis, with the amount of collateral obtained based upon management's credit evaluation of the borrower.           reporting purposes. These differences, which primarily relate to the future tax benefits associated with
Interest rates are either fixed or variable, and maturities range up to 15 years, depending upon the purpose       recording loan losses, also include amounts attributable to certain employee benefits and deferred compen-
of the loan.                                                                                                       sation. Deferred tax benefits (an asset account) represent the net future tax return consequences of those
                                                                                                                   differences, which will either be deductible or taxable when the assets and liabilities are recovered or
Reporting Policy: The combined financial statements include the accounts of NYBDC and ESCDC (collec-               settled.
tively referred to as the “Company”). The combined financial statements do not include the accounts of
Statewide. All material intercompany accounts and transactions have been eliminated.                               Other Assets: Other assets include both non-marketable equity investments and marketable securities
                                                                                                                   approximating $1,147,000 and $2,377,000 at September 30, 2006 and 2005, respectively. Other assets
Loans and Allowance for Loan Losses: Loans receivable are stated at the amount of unpaid principal,
                                                                                                                   also include furniture and equipment, prepaids, and certain other assets. With respect to unrealized gains
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 consider-         and losses on investment securities, such items, net of tax, are classified as other comprehensive items.
ing economic/business conditions and collection efforts, that the borrowers' financial condition is such that      When applicable, impairment losses, other than temporary declines in the fair value of investment
collection of interest is doubtful. Impaired loans, or loans in which it is probable the Company will be           securities, are charged to earnings.
unable to collect all contractual principal and interest payments due in accordance with the loan agreement,       Use of Estimates and Assumptions: The preparation of financial statements in conformity with generally
are generally recorded at the present value of expected future cash flows, discounted at the loan's effective      accepted accounting principles requires management to make estimates and assumptions that affect the
interest rate, or the fair value of the collateral. Interest payments received on such loans are generally         reported amounts of assets and liabilities at the date of the financial statements. Estimates also affect the
applied as a reduction of the loan principal balance. A portion of the loan portfolio is designated as a           reported amounts of revenues and expenses during the reporting period. Actual results could differ from
Portfolio Collateral Account and is pledged against certain borrowings (see Note 3).
                                                                                                                   those estimates.
    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        Reclassifications: Certain items in the 2005 financial statements have been reclassified to conform with
and prior loan loss experience. The evaluations take into consideration such factors as changes in the             the current year presentation.
                                                                                                                                                             2006 New York Business Development Corp. 17
                                                                                        Combined Statements of Cash Flows                     Years Ended September 30, 2006 and 2005
                                                                                                                                                                2006        2005
Cash Flows From Operating Activities
  Net income                                                                                                                                                         $ 1,197,893            $ 754,658
  Adjustments to reconcile net income to net cash (used in) provided by operating activities:
          Depreciation                                                                                                                                                      126,245              120,867
          Provision for loan losses                                                                                                                                         150,000              600,000
          Deferred tax benefits                                                                                                                                             396,390             (223,088)
          Changes in:
             Other assets                                                                                                                                                1,287,274               (447,788)
             Other liabilities                                                                                                                                          (1,269,316)            (1,174,509)
               Net cash provided by (used in) operating activities                                                                                                       1,888,486               (369,861)
Cash Flows From Investing Activities
  Loans disbursed, net of participations                                                                                                                               (64,438,020) (48,183,138)
  Loan payments received                                                                                                                                                50,370,548 50,451,890
  Change in restricted cash                                                                                                                                              1,305,263      (80,375)
  Purchase of furniture and equipment                                                                                                                                     (144,551)     (19,705)
               Net cash (used in) provided by investing activities                                                                                                     (12,906,760)    2,168,672
Cash Flows From Financing Activities
  Net (repayments) advances on borrowings                                                                                                                             10,703,655   (940,247)
  Issuance of capital stock                                                                                                                                                    –      3,388
  Redemption of capital stock                                                                                                                                                  –   (749,290)
               Net cash provided by (used in) financing activities                                                                                                    10,703,655 (1,686,149)
Net change in cash                                                                                                                                                      (314,619)   112,662
Cash, beginning of year                                                                                                                                                  503,625    390,963
Cash, end of year                                                                                                                                                    $ 189,006 $ 503,625
Supplemental Disclosures of Cash Flow Information
  Cash payments for:
    Interest                                                                                                                                                         $ 5,477,891            $ 4,653,101
    Income taxes                                                                                                                                                     $ 337,880              $ 931,954
                                                                                                                                                    See Notes to Combined Financial Statements.

Note 2. Loans Receivable and Allowance for Loan Losses                                                    Note 3. Notes Payable
     Loans receivable, as presented on the combined statements of financial condition, consist of the
following:                                                                                                Member Borrowings
                                                                        September 30                         Members consist principally of banks which have applied for membership and have been accepted
                                                                   2006                  2005             by NYBDC’s Board of Directors. Many members are also stockholders of NYBDC. Funds are obtained
Loans receivable                                           $ 122,837,225 $ 108,699,857                    from members who, at the time they become members, agree to lend money to NYBDC upon call,
Less allowance for loan losses                                   (6,450,331)            (6,230,435)       subject to limits provided in the basic legislation establishing NYBDC. The loan limit available from
        Loans receivable, net                             $ 116,386,894 $ 102,469,422                     members was $61.1 million at September 30, 2006.
                                                                                                             Calls on members are made for maturities of one year with the September 30, 2006 outstanding loan
    The allowance for loan losses account is increased by a provision for loan losses, which is charged
                                                                                                          balances maturing August 1, 2007. Interest is payable twice a year, on February 1 and August 1.
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          Member borrowings generally provide for interest at the lowest prime commercial rate or 50 to 150 basis
allowance is subject to change. The amount of such change is not reasonably possible to estimate.         points above the 30 day LIBOR (London Interbank Offered Rate). All member loans are unsecured.
    A schedule of the changes in the allowance for loan losses account follows:
                                                                                                          New York State Common Retirement Fund Borrowings
                                                                                                               NYBDC has entered into 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
                                                                         September 30
                                                                                                          exceed $200,000,000. The proceeds of these loans may be used by NYBDC to extend credit to small
                                                                      2006                 2005           businesses operating in the State of New York.
Balance, beginning of year                                  $       6,230,435 $          5,828,145
Provision for loan losses                                             150,000              600,000             Under the agreements, borrowings under the loans bear interest at the following annual rate: (i) the
Recoveries credited to the allowance                                  235,654               55,569        aggregate of the 30-day net yield on the “Vision Treasury Money Market Fund” on uninvested funds and
Losses charged to the allowance                                      (165,758)            (253,279)       (ii) between 0.75% and 1.50% (principally dependent upon the nature of the SBA involvement) over the
       Balance, end of year                                 $       6,450,331 $          6,230,435        applicable treasury note rate for comparable original maturities, on the principal amount of each out-
                                                                                                          standing loan (the Portfolio Collateral Account).
   Loans on which the accrual of interest has been discontinued approximated $1,893,000 and                    At September 30, 2006 and 2005, the outstanding balance on these loans were $59,918,829 and
$2,833,000 September 30, 2006 and 2005, respectively.
                                                                                                          $56,238,898, respectively. The principal payments on the loans generally parallels the underlying loan
   Loans serviced for others are not included in the accompanying statements of financial condition.
                                                                                                          between NYBDC and its borrower, over a maximum of 15 years.
The unpaid principal balances of these loans are summarized as follows:
                                                                                                               The loans are collateralized by NYBDC’s right, title and interest in both the Uninvested Collateral
                                                                        September 30
                                                                                                          Account and the Portfolio Collateral Account. In addition, the loan agreements provide for various restric-
                                                                  2006                 2005
ESCDC loans funded by SBA                                  $ 288,237,974 $ 263,103,885                    tive covenants, such as restrictions on incurring new secured indebtedness or liens (except for certain
Bank participations                                              47,340,973          37,587,923           office equipment and furniture), restrictions on the declaration or payment of dividends, and restrictions
                                                           $ 335,578,947 $ 300,691,808                    on providing any guarantees.

      18      Annual Report
Bank Line of Credit Borrowings                                                                                                                                                             September 30
   NYBDC has available lines of credit with various banks (including members) totaling $56 million at                                                                                 2006              2005
September 30, 2006. The amounts outstanding on these lines at September 30, 2006 and 2005                    Projected benefit obligation                                      $   (2,657,478)    $ (2,439,686)
were $19,500,000 and $21,000,000, respectively. The line of credit agreements, all of which are              Fair value of plan assets                                              2,534,926         1,787,021
unsecured, are renewed annually and generally provide for interest at a LIBOR based index rate.              Funded status                                                     $    ( 122,552)    $ ( 652,665)
                                                                                                             Net periodic pension cost                                         $      230,019     $     223,827
Bank Term Borrowings                                                                                         Employer contributions                                            $      546,443     $     220,753
    NYBDC has entered into agreements with two financial institutions, both of which are members
                                                                                                             Benefits paid                                                     $       55,243     $      13,468
and stockholders, providing for term borrowings of up to $17.5 million. Interest on the borrowings are
                                                                                                             Accumulated benefit obligation                                    $    2,062,648     $ 1,886,512
determined based on a spread over the applicable Treasury note rate (approximating 5.65% at
                                                                                                             Prepaid (accrued) pension cost recognized in the
September 30, 2006). The amounts outstanding under the term agreements were $10,412,866 and
                                                                                                               statement of financial condition                                $     128,082         $    (206,342)
$1,729,216 at September 30, 2006 and 2005, respectively. The agreements provide for annual
                                                                                                             Weighted average assumptions used to determine
principal reduction payments, dependent upon the amount of borrowings, which currently approxi-
                                                                                                             both the benefit obligation and the net benefit
mates $663,000.
                                                                                                             cost for the years ended September 30:
New York State Teachers’ Retirement System Borrowings                                                        Discount rate                                                             6.00%                 5.50%
    NYBDC has entered into a loan agreement with the New York State Teachers’ Retirement System              Expected return on plan assets                                            7.50%                 8.00%
(the “System”) under which the System would make available to NYBDC an aggregate principal                   Rate of compensation increase                                             3.50%                 3.00%
amount not to exceed $50,000,000. The proceeds of this loan are to be used by NYBDC to extend
credit to small businesses operating in New York State.                                                      Plan Assets: The Plan’s weighted average asset allocations, by asset category, are as follows:
    Under the agreement, any advances under the loan will bear interest at 1.8% to 2.2% (dependent                                                                                      September 30
on the ratio of loan to secured value) above a treasury note yield, adjusted to a constant maturity of       Asset Category                                                       2006                  2005
ten years. As of September 30, 2006, there were no borrowings under this agreement.                          Equity securities                                                    59.8%                 58.8%
                                                                                                             Debt securities                                                      39.9%                 41.2%
Other Obligations                                                                                            Other                                                                 0.3%                  0.0%
    Other obligations principally include advances from Statewide relating to the funding requirements
                                                                                                                Total                                                           100.0%                 100.0%
of Statewide loans of approximately $3.4 million and $2.1 million at September 30, 2006 and 2005,
respectively. Such advances bear interest and provide for repayment terms which generally parallel           Investment Policies: The New York State Bankers Retirement System (the “System”) was estab-
the underlying loan receivable terms.                                                                        lished in 1938 to provide for the payment of benefits to employees of participating banks. The System
    Other obligations also include term notes with New York Small Business Venture Fund, LLC, a              is overseen by a Board of Trustees who set the investment policy guidelines.
privately held economic development company. This unsecured obligations, in the amount of $1.5                   The System utilizes two investment management firms. The System’s investment objective is to
million and $3.0 million, at September 30, 2006 and 2005, respectively, bear interest at fixed rates         exceed the investment benchmarks in each asset category. Each firm operates under a separate
of 5.73% and 1.34%, respectively. The agreements provides for monthly interest payments and                  written investment policy designed to achieve an allocation approximating 60% invested in equity
the payment of principal at maturity. The $3.0 million advance was repaid at its maturity in                 securities and 40% invested in debt securities.
November 2005.
                                                                                                             Equities: The target allocation percentage for equity securities is 60%, but may vary from 50% - 70%
Note 4. Income Taxes                                                                                         at the investment manager’s discretion.
   The components of the provision for income taxes are as follows:                                          Fixed Income: The target allocation percentage for debt securities is 40%, but may vary from 30% -
                                                                        2006                  2005           50% at the investment manager’s discretion.
Current taxes
 Federal                                                           $    382,441         $     772,669        Expected Long-Term Rate of Return: The expected long-term rate of return on plan assets reflects
 State and city                                                          76,469               194,320        long-term earnings expectations on existing plan assets and those contributions expected to be
Deferred tax (benefit)                                                  275,389             ( 223,088)       received during the current year. In estimating that rate, appropriate consideration is given to
       Net provision                                               $    734,299         $     743,901        historical returns earned by plan assets in the fund and the rates of return expected to be available
                                                                                                             for reinvestment. Average rates of return over the past 1, 3, 5, and 10 year periods were determined
    As of September 30, 2006 and 2005, deferred tax assets recognized for deductible temporary dif-          and subsequently adjusted to reflect current capital market assumptions and changes in investment
ferences approximated $2,619,000 and $3,055,600, respectively, and deferred tax liabilities                  allocations.
recognized for taxable temporary differences approximated $0 and $20,000, respectively. Deferred             Contributions: The estimated employer contributions expected to be paid to the plan during the
tax assets and liabilities are offset for financial reporting purposes and are included as an asset in the   fiscal year ending September 30, 2007 approximates $43,000.
combined statements of financial condition.
    The differences between income taxes computed under federal statutory rates and effective rates          Termination of Plan: Effective December 31, 2006, the accrual of benefits under the defined benefit
is primarily attributable to state and city taxes and in 2005 the tax reporting status of ESCDC. In this     pension plan will be discontinued and the plan will be terminated. Future actuarial reports, and
regard, during 2003, ESCDC filed an application for recognition of exemption under Section 501(c)(3)         NYBDC’s related future pension expense, may be impacted by the termination of the plan.
of the Internal Revenue Code that, if approved by the Internal Revenue Service, would have allowed
ESCDC to operate as a tax exempt organization effective October 1, 2003. As of September 30,                 Estimated Future Benefit Payments: The estimated future benefits expected to be paid during 2007
2004, the application was pending final action by the Internal Revenue Service and, as such, no              approximate $2,632,000.
income taxes were recorded during 2004. During the fiscal year ending September 30, 2005, ESCDC                 The total expense for all NYBDC employee benefit plans was approximately $542,000 and
withdrew its application, thus providing for taxable status for the corporation. As a result, the            $760,000 for the years ended September 30, 2006 and 2005, respectively.
provision for income taxes for 2005 includes income taxes attributable to ESCDC of approximately
$143,000 for the 2005 year and $66,000 for the 2004 year.                                                    Note 6. Fair Value of Financial Instruments
                                                                                                                  Under generally accepted accounting principles, the Company is required to disclose the estimated
                                                                                                             fair value of its financial instruments. A financial instrument is cash, evidence of an ownership interest
Note 5. Employee Benefit Plans                                                                               in an entity, or a contract which imposes on one entity a contractual obligation to deliver cash or other
    NYBDC maintains a salary reduction (401-k) plan, a Supplemental Executive Retirement Plan                financial instruments to a second entity which has comparable contractual rights.
(SERP), and a defined benefit pension plan.                                                                       The fair value of a financial instrument is the current amount that would be exchanged between
    The salary reduction (401-k) plan allows employees to defer and contribute up to 10% of their            willing and unrelated parties. Fair value is best determined based upon quoted market prices.
salary into the plan with the employer matching approximately 80% of the employees' contributions            However, in many instances, there are no quoted market prices for the Company’s various financial
up to 6%, subject to certain limitations imposed by the Internal Revenue Services. The plan is funded        instruments. In cases where quoted market prices are not available, fair values are based on
on a current basis. The expense for the plan was approximately $148,000 and $144,000 for the years           management’s estimates using present value or other valuation techniques. Those techniques are
ended September 30, 2006 and 2005, respectively.                                                             significantly affected by the assumptions used, including the discount rate and estimates of future
    The SERP, which is unfunded and non-qualified, is intended to provide supplemental retirement            cash flows.
benefits due to limitations imposed under the Internal Revenue Code. The computed benefit, which                  The following methods and assumptions were used by the Company’s in estimating fair value dis-
approximates the accrued benefit under the SERP, is based on actuarial calculations and approximat-          closures for financial instruments:
ed $45,000 and $1,141,000 at September 30, 2006 and 2005, respectively. The expense for the
SERP was approximately $178,000 and $389,000 for the years ended September 30, 2006 and                      Cash and Restricted Cash: The fair value of cash and restricted cash approximates the recorded
2005, respectively. A significant portion of the obligation under the SERP, approximating $1,270,000,        amounts.
was paid during the fiscal year ending September 30, 2006 and funded by the Company’s liquidation
                                                                                                             Loans Receivable: For variable-rate loans that reprice frequently and with no significant change in
of certain marketable securities designated for this purpose.
                                                                                                             credit risk, fair values are based on carrying values. Fair values for other loans are estimated using
    The defined benefit pension plan, a multiple-employer plan, with the New York State Bankers
                                                                                                             discounted cash flow analyses, using interest rates currently being offered for loans with similar terms
Retirement System, covers all eligible employees. NYBDC uses a September 30 measurement date
                                                                                                             to borrowers of similar credit quality. Fair values for non-performing loans are estimated using
for the plan. The following table sets forth the plan’s estimated funded status and amounts
                                                                                                             discounted cash flow analyses or underlying collateral values, where applicable.
recognized in the accompanying financial statements.

                                                                                                                                                    2006 New York Business Development Corp.                    19
Notes Payable: The fair values of the Company’s long-term fixed-rate borrowings are estimated using              Loan commitments are as follows at September 30, 2006:
discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar
types of borrowing arrangements. The fair value of variable-rate, fixed-term borrowings approximate their                                                        Number of Loans                      Amount
recorded amounts.                                                                                             Loans authorized, but not fully disbursed
                                                                                                                to borrowers                                             81                    $      50,702,000
Accrued Interest: The fair value of accrued interest approximates the recorded amounts.
     The estimated fair values and related recorded amounts of the Company’s financial instruments are as     Less estimated bank participations on loan
follows (dollars in thousands):                                                                                 commitments                                                                          (24,825,000)
                                                                                                              Net outstanding loan commitments                           81                    $      25,877,000
                                                                      September 30
                                                           2006                      2005
                                                   Recorded      Fair       Recorded       Fair                   Commitments to extend credit represent obligations to lend to a customer as long as there is no
                                                    Amount      Value        Amount       Value               violation of any condition established under the loan approval. Commitments generally have fixed
Financial assets:                                                                                             expiration dates or other termination clauses. Since commitments may expire without being drawn upon,
Loans receivable, net                             $117,949      $119,401          $102,469      $106,151      the total commitment amounts do not necessarily represent future cash requirements.
Cash                                                   189           189               504           504
Restricted cash                                        763           763             2,068         2,068      Operating Lease Commitments
Accrued interest receivable                            741           741               640           640          The Company occupies office facilities and leases certain office equipment under various operating
                                                                                                              lease agreements. Terms of the leases range from a month-to-month tenancy to a ten year commitment.
Financial liabilities:                                                                                        At September 30, 2006, future rental payments due under leases with terms in excess of one year approxi-
Notes payable                                      103,245         99,478           92,542         90,666
                                                                                                              mate $811,000. Substantially all of this commitment, or approximately $200,000 annually (through 2010),
Accrued interest payable                               476            476              404            404
                                                                                                              relates to NYBDC’s office facility in Albany, New York. Total occupancy costs were approximately $316,000
Note 7. Commitments and Contingencies                                                                         and $274,000 for the years ended September 30, 2006 and 2005, respectively.
Commitments with Off-Balance-Sheet Risk
                                                                                                              Concentration of Credit Risk
    In the normal course of business, NYBDC provides commitments to extend credit in order to meet the           The Company’s loan portfolio consists primarily of real estate and similarly secured loans to small
financing needs of its customers. These commitments involve, to varying degrees, elements of credit risk in   business borrowers throughout New York State. The borrower's ability to honor their contracts is, in part,
excess of the amount recognized in the statements of financial condition.                                     dependent upon the State's economy.

        Report of Independent Auditors
        Board of Directors and Stockholders
        New York Business Development Corporation
           We have audited the accompanying combined statements of                                                  management, as well as evaluating the overall financial statement
        financial condition of New York Business Development Corporation                                            presentation. We believe that our audits provide a reasonable
        as of September 30, 2006 and 2005, and the related combined                                                 basis for our opinion.
        statements of operations, changes in equity, and cash flows for the                                            In our opinion, the combined financial statements referred to
        years then ended. These financial statements are the responsibility                                         above present fairly, in all material respects, the financial position
        of the Company's management. Our responsibility is to express an                                            of New York Business Development Corporation as of September
        opinion on these financial statements based on our audits.                                                  30, 2006 and 2005, and the results of their operations and their
           We conducted our audits in accordance with auditing standards                                            cash flows for the years then ended in conformity with accounting
        generally accepted in the United States of America. Those                                                   principles generally accepted in the United States of America.
        standards require that we plan and perform the audit to obtain
        reasonable assurance about whether the financial statements are
        free of material misstatement. An audit includes examining, on a test
        basis, evidence supporting the amounts and disclosures in the
        financial statements. An audit also includes assessing the                                                  Albany, New York
        accounting principles used and significant estimates made by                                                October 19, 2006

      20      Annual Report
     Partners Provide Loan Referrals to NYBDC

Adirondack Economic Development                Local Development Corporation of Laurelton,     Southern Tier Economic Growth
Albany-Colonie Regional Chamber                  Rosedale and Springfield Gardens              Southwest Brooklyn Industrial Development
  of Commerce                                  Mohawk Valley Chamber of Commerce
                                                                                               Sullivan County Chamber of Commerce
Albany Local Development                       Montgomery County Chamber of Commerce
                                                                                               Sullivan County Partnership for Economic
Amherst Industrial Development                 Montgomery County Economic Opportunity
Bronx Overall Economic Development               and Development                                 Development
Brooklyn Economic Development                  Morris Park Local Development                   The Business Council of Westchester
Broome County Industrial Development           NFC Development                                 The County of Orleans Industrial Development
Catskill Watershed                             Ontario County Industrial Development
                                                                                               Tier Information and Enterprise
Cattaraugus Economic Development Zone          Orange County Business Development
                                                                                                 Resources, Inc.
Clinton County Area Development                Putnam County Economic Development
Cortland County Business Development           Queens County Overall Economic                  Tioga County Economic Development
County of Chautauqua Industrial Development      Development                                     & Planning
County of Otsego Industrial Development        REDEC Relending                                 Tompkins County Area Development, Inc.
Development Authority of the North Country     Rensselaer County Industrial Development
                                                                                               Ulster County Development
Dutchess County Economic Development           Rensselaer Gateway Development
                                                                                               Warren County Economic Development
East Williamsburg Valley Industrial            Rockaway Development and Revitalization
  Development                                  Rockland Economic Development                   Washington County Local Development
Erie County Industrial Development             Rome Industrial Development                     Wayne Economic Development
Essex County Industrial Development            Saratoga Economic Development                   West Brighton Community Local Development
Genesee County Economic Development            Schenectady Economic Development
                                                                                               Westchester County Association, Inc.
Hudson Development                             Schoharie County Planning and Development
                                                                                               Wyoming County Industrial Development
Livingston County Industrial Development       Schuyler County Partnership for Economic
Local Development Corporation of East            Development                                   Yates County Industrial Development
  New York                                     Seneca County Industrial Development            Yonkers Industrial Development

NYBDCFinance Centers

Albany                                        Long Island                                    Syracuse
50 Beaver Street                              48 South Service Road                          290 Elwood Davis Road
Albany, N.Y. 12207                            Melville, N.Y. 11747                           Liverpool, N.Y. 13088
518-463-2268                                  631-465-2193                                   315-453-8195
Fax 518-463-0240                              Fax 631-465-2195                               Fax 315-453-8197

New York City                                 Buffalo
633 Third Avenue                              300 International Drive
New York, N.Y. 10017                          Williamsville, N.Y. 14221
212-803-3672                                  716-626-3423
Fax 212-803-3675                              Fax 716-626-3001

                                          Visit our Web site at www.nybdc.com
New York Business Development Corporation

50 Beaver Street
Albany, New York 12207

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