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 4205.5 - Procedure for local buy-out assistance

Universal Citation: 21 NY Comp Codes Rules and Regs ยง 4205.5

Current through Register Vol. 46, No. 12, March 20, 2024

(a) Application forms shall be developed by the UDC and the department.

(b) An industrial firm shall submit an application for a local buy-out loan to the UDC and the department, which may include, but need not be limited to, the following:

(1) a feasibility study and business development and financing plan;

(2) information about the proposed project's total project cost, total assistance requested, use of loan funds, other proposed sources of funding, and the number of jobs to be preserved or created;

(3) a complete set of financial statements and a list of proposed collateral, with appraisals;

(4) a description of the need for the requested funds and of the expected economic development impact of the loan;

(5) in the case of a transfer to employees, information about the extent of support by employees and labor unions which represent employees of the firm;

(6) a letter from the present owners, or those otherwise authorized to act on behalf of the business, indicating agreement to sell the business or otherwise transfer ownership at the specified price;

(7) commitments of financing from all other sources;

(8) evidence that adequate private and/or public financing is not available at affordable rates or terms to fill the financial gap;

(9) estimates of the total number of jobs to be created or retained immediately and after a three-year time period immediately following the receipt of the loan; and

(10) such other information as the UDC and the department shall require.

(c) The loan application shall be reviewed by the UDC with the assistance of the department and submitted to the interagency advisory committee for its review, analysis and recommendation to the UDC chairman. The UDC chairman shall submit a recommended project to the UDC directors for preliminary approval.

(d) In the event the UDC directors preliminarily approve a project, the UDC will schedule a public hearing in accordance with the UDC Act. Upon completion of the public hearing and a written comment period, the project will be submitted to the UDC directors for final approval. In the event the UDC directors give final approval, the project will be submitted for approval to the State Public Authorities Control Board.

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