New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter L - New York State Urban Development Corporation
Part 4205 - Industrial Effectiveness Program-specialized Industrial Effectiveness Financial Assistance
Section 4205.11 - Criteria for working capital loans for corporate restructuring or corporate turnaround plans
Universal Citation: 21 NY Comp Codes Rules and Regs ยง 4205.11
Current through Register Vol. 46, No. 12, March 20, 2024
(a) The UDC is required to make industrial effectivnesss project findings under the UDC Act. Assistance will be predicated upon the ability of the UDC to make the following findings:
(1) that a feasibility study or
productivity assessment exists demonstrating the potential for future
profitability of the firm requesting financial assistance and such study or
assessment has been reviewed and approved by the Commissioner of Economic
Development;
(2) that for loans to
implement a corporate restructuring or turnaround plan, the management of the
industrial firm requesting assistance is capable and the firm has a sound
business development plan that includes measures to ensure labor and management
cooperation and to effect changes required to continue as a successful
business;
(3) that the requested
financial assistance is not available from other public or private financing
sources;
(4) that the area in which
the project is to be located is a substandard or insanitary area, or is in
danger of becoming a substandard or insanitary area, wherein there exists a
condition of substantial and persistent unemployment or underemployment;
and
(5) that there is a feasible
method for the relocation of families and individuals displaced from the
project area into decent, safe and sanitary dwellings, which are or will be
provided in the project area or in other areas not generally less desirable in
regard to public utilities and public and commercial facilities, at rents or
prices within the financial needs of such families or individuals and
reasonably accessible to their places of employment.
(b) In addition to the foregoing, the UDC shall evaluate applications submitted in accordance with the following criteria:
(1) the firm has been qualified for
assistance pursuant to Part 4202 of this Title;
(2) the firm faces the loss of a substantial
number of jobs as the result of a closing, partial closing, or relocation
out-of-state of the firm;
(3) the
firm is an important employer in the community, and efforts to revitalize the
firm will serve the long-term interests of both employees and the
community;
(4) the social costs to
employees and the community resulting from a large employment loss, plant
closing or business failure, and fiscal benefits to the State and the community
from maintaining operations of the firm, outweigh the financial risks to the
State;
(5) the project loan will
significantly contribute to the success of the corporate restructuring or
turnaround plan, and implementation of such plan is unlikely to occur without
State assistance;
(6) the other
financing required for the project has been committed;
(7) the firm has taken, or is committed to
take, such steps as the UDC deems necessary to ensure that it has a reasonable
chance to continue as a successful business, including but not limited to
changes in its operations, management or financing, and is prepared to include
such as a condition of financing in the loan agreement;
(8) the corporate restructuring or turnaround
plan reflects consideration and fair treatment of employees, and the firm's
adjustment plan seeks to preserve the jobs of employees to the maximum extent
possible;
(9) there exists a
reasonable prospect for repayment of the working capital loan; and
(10) the firm has agreed to first consider,
for new employment opportunities opened as a result of the project loan,
persons eligible to participate in the Federal Job Training Partnership Act (
P.L. 97-300, as amended) programs, who shall be referred to the firm by
administrative entities of service delivery areas created pursuant to such act
on or by the Job Service Division of the Department of Labor.
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