New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter L - New York State Urban Development Corporation
Part 4209 - Regional Revolving Loan Trust Fund
Section 4209.4 - Assistance
Universal Citation: 21 NY Comp Codes Rules and Regs ยง 4209.4
Current through Register Vol. 46, No. 12, March 20, 2024
(a) A regional corporation may use trust funds to provide the following types of assistance for eligible projects undertaken by eligible businesses:
(1) loan guarantees; and
(2) working capital loans.
(b) Loan guarantees may be made:
(1) solely to guarantee repayment of short-
and medium-term loans for working capital, revolving lines of credit, and
seasonal inventory and accounts-receivable loans advanced by banking
organizations, provided such loans are secured by a security agreement, chattel
paper, loan agreement, or such other instruments or documents deemed necessary
or convenient by the regional corporation;
(2) for an amount which shall not exceed the
lesser of 90 percent of the total project cost, or $100,000. Notwithstanding
anything to the contrary in this paragraph, a loan guarantee may be made for up
to 90 percent of the total project cost up to a maximum of $150,000 for interim
financing where another lender or guarantor will provide permanent financing
within 180 days;
(3) for a term not
to exceed five years; and
(4) if it
can be backed by a reserve (determined by the regional corporation) within the
regional corporation's loan fund account of between 25 percent and 100 percent
of the amount of the loan guarantee.
(c) Working capital loans may be made:
(1) for an amount not to exceed the lesser of
90 percent of the total project cost or $100,000;
(2) at interest rates determined by the
regional corporation, which in no event shall be less than five
percent;
(3) for a term not to
exceed five years; and
(4) provided
they are secured by lien positions on collateral at the highest level of
priority that can accommodate an eligible business's ability to raise
sufficient debt and equity capital to implement an eligible project.
(d) A regional corporation shall deposit any principal repaid by an eligible business to the regional corporation for a working capital loan into the regional corporation's loan fund account.
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