ConnectOne Bank Joined State Linked Deposit Program
The bank has partnered with New York to offer reduced-interest loans to eligible small and mid-sized businesses.
Updated on Oct. 6, 2026 in Banking
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ConnectOne Bank has officially joined the New York State Linked Deposit Program to help regional firms access lower-interest capital. This initiative aims to stimulate economic growth and innovation across the state.
Why it matters
The program provides a critical financial pathway for businesses to secure affordable financing for expansion. By reducing interest costs, the state encourages investment in manufacturing, technology, and distressed local markets.
Eligible firms include manufacturing, tech, and agricultural entities with 500 or fewer employees, or service firms in distressed areas with 100 or fewer staff. Borrowers can access reduced-rate capital for a four-year term.
The players
ConnectOne Bank
ConnectOne Bank is a financial institution that maintains branch operations in areas including Long Island.
New York State
New York State is the government entity managing the Linked Deposit Program to incentivize regional economic development.
The details
New York State supports the program by making matching deposits with participating lenders like ConnectOne, which allows banks to pass interest savings directly to borrowers. This structure is designed specifically to lower the cost of borrowing for companies seeking to innovate or expand their operations.
Timeline
The program provides reduced borrowing costs for a four-year term.
Market Dynamics
This story follows the standard operational framework established by the New York State Linked Deposit Program, which incentivizes private lenders to support small business growth. The move positions ConnectOne Bank to capture a larger share of the small-to-mid-market commercial lending segment in the region.
Small business owners may now apply for lower-cost capital through ConnectOne Bank to fund expansion or equipment upgrades. These reduced-rate projects can improve the debt-servicing ratios for qualifying local companies compared to traditional commercial loan products.
The takeaway
Businesses looking to leverage these loans should assess their total project costs against the $4 million per-project cap. Understanding these specific state-backed incentives can significantly lower the long-term cost of borrowing for eligible firms.
Further reading
For more information on the regional financial landscape, visit our Banking section.
Source note: This article includes information reported by Long Island Business News.
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