Assemblyman David G. McDonough joined Governor George Pataki last week in announcing the expansion of the successful Excelsior Linked Deposit Program. The program, which enables financial institutions to make low interest loans of up to $500,000 to small businesses, will now allow loans of up to $1 million.

"Thanks to the expansion of the Excelsior Linked Deposit Program, local small businesses owners can now take advantage of up to $1 million in low cost loans," McDonough said. "More than 95 percent of approved Linked Deposits go to businesses with less than 100 employees, bringing these valuable loans to the small businesses who need them the most."

The Excelsior Linked Deposit Program allows 110 lending institutions across the state to make loans to small businesses that are well below current marked interest rates by depositing state funds at comparably reduced rates. Recently approved legislation has increased the funds from $200 to $350 million, allowing the maximum loan increase to $1 million.