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 4205.7 - Criteria for working capital loans to improve productivity and competitiveness
Universal Citation: 21 NY Comp Codes Rules and Regs ยง 4205.7
Current through Register Vol. 46, No. 12, March 20, 2024
(a) The UDC is required to make industrial effectivness 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 an adjustment plan or a
sound business development plan;
(3) the project addresses a primary cause of
the firm's competitive problem, is essential to its overall plan to improve
long-term competitiveness, and is likely to improve the productivity, market
position or competitive strength of the firm;
(4) other financing required for the project
has been committed;
(5) the firm is
an important employer in the community, and the project will serve the
interests of employees and of the community;
(6) the project is intended to maintain
employment of all or a substantial part of the existing work force to the
maximum extent;
(7) the firm is
prepared to give contractual assurances that the products, processes and
techniques to be financed will be developed and produced in the State and that
benefits of the project shall remain in the State;
(8) in the case of an expansion or
diversification of a product line, the product has a good probability of
becoming commercially successful;
(9) the ratio of number of jobs to be created
or retained to the amount of assistance requested from the UDC is warranted. In
general, financing will not be approved for projects that anticipate a return
of less than one job for each $15,000 of State assistance;
(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 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; and
(11) the firm has the ability to repay the
loan.
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