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LDI Solutions pays back $3MM obligation to the City of Rochester

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The City of Rochester is pleased to report that LDI Solutions has fulfilled its obligation to repay a $3MM loan needed to construct a manufacturing facility, years ahead of schedule.

In 2019, the City of Rochester, in conjunction with the Rochester Economic Development Commission, coordinated the financing of a 24,000 sq. ft. manufacturing facility between lender New Hampshire Business Finance Authority and borrower LDI Corporation.

New Hampshire Business Finance Authority was created in 1992 to foster economic development and create employment in New Hampshire. The BFA accomplishes these objectives by working with New Hampshire’s banking, business, and economic development commissions to develop and implement programs that expand the availability of capital in the state. Its mission is to help New Hampshire businesses secure the capital they need to expand, succeed, and create more jobs.

According to Michael Scala, Director of Economic Development for the City of Rochester, the term of the loan was for 60 months (5 years) with an option to extend for an additional 60 months, if requested. LDI began making payments on the mortgage approximately 10 months ago.

“The City essentially acted as guarantor for the build, entering into a mortgage agreement with LDI for repayment,” said Scala. “On July 15th, 2022, LDI Solutions refinanced the remainder of the loan with a local lender, returning the balance of the mortgage to the City of Rochester, allowing the City to pay off the BFA note.”

Deputy Finance Director, Mark Sullivan, described the arrangement as “a unique approach” to an economic development project.

“We originally told the City Council that the risk exposure to the City would be extremely low — and we were correct,” said Sullivan.” “This is a great example of how a municipality, private business, and state organization can work together to expand the tax base and create jobs. 

LDI manufacturers “green” upholstery for healthcare and commercial customers. They relocated from Portsmouth, NH to build a new facility in Rochester. LDI currently employs approximately 40 workers and plans to expand in the near future. LDI originally started its business operations in Rochester at the Gonic Mill in the early 1990s and grew its business substantially over the years. 

“The Planning Board granted pre-approval for LDI to expand their manufacturing footprint by an additional 16,000 sf. ft.,” said Scala. “The success of the project serves as a proof of concept for future ventures. We have a template now to help us continue to develop and create more jobs in Rochester.”

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