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 4205.3 - Criteria for local buy-out financial assistance
Universal Citation: 21 NY Comp Codes Rules and Regs ยง 4205.3
Current through Register Vol. 46, No. 12, March 20, 2024
(a) The UDC is required to make industrial effectiveness 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 has a comprehensive and sound
business development and financial plan that includes detailed strategies and
remedial measures to ensure labor and management cooperation, to effect changes
required to continue as a successful business, to ensure capable management
after the buy-out, and which demonstrates that the financial circumstances of
the firm and the purchasing group make the buy-out feasible;
(3) 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;
(4) the other financing required for the
local buy-out is committed;
(5) the
local buy-out is unlikely to occur without the UDC loan assistance, and the
firm is likely to close, partially close or relocate out-of-state resulting in
the loss of substantial numbers of jobs;
(6) the firm is an important employer in the
community and the local buy-out is in the interest of both employees and the
community and will not expose employees to excessive risks and potential
liabilities;
(7) the ratio of the
number of jobs to be created or retained to the amount of assistance requested
from the UDC is warranted. In general, the UDC will not finance projects that
anticipate a return of less than one job for every $15,000 of State
assistance;
(8) the firm has the
ability to repay the loan; and
(9)
the firm has agreed to first consider, for any new positions opened as a result
of the project loan, persons eligible to participate in 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 or by the Job Service Division of the Department of
Labor.
Disclaimer: These regulations may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.