Current through Register Vol. 44, No. 38, September 21, 2022
(a) Regional corporations' loan committees
shall review each application by eligible businesses for assistance, determine
the feasibility of the transaction proposed in the application, and shall
recommend to the board of directors or other governing body of the regional
corporation such action as the committee deems appropriate.
(b) The decision to approve or reject an
application for financial assistance pursuant to the provisions of this Part
shall be made by a majority of the directors of the regional corporation.
(1) No member of the board or other governing
body of a regional corporation shall participate in a decision on a project
application when such member is a party to or has a financial interest in such
project. Any member who cannot participate in a decision on a project
application for such reason shall not be counted as a member of the board or
other governing body for purposes of determining the number of members required
for a majority vote on such application.
(2) No employee or officer of any regional
corporation shall be a party to or have any financial interest in any project
that receives financial assistance pursuant to this Part.
(c) Upon approval of an application for
assistance to an eligible project, the regional corporation shall request
approval from the corporation to proceed with providing the assistance to the
eligible project and, as part of such request, shall certify to the
corporation:
(1) for working capital loans,
the amount of the loan, the loan term and the interest rate;
(2) for loan guarantees, the term, amount and
interest rate of the loan to be guaranteed, the amount and term of the loan
guarantee, and the amount of the reserve to be set aside therefor;
(3) for working capital loans and loan
guarantees:
(i) the name of the eligible
business;
(ii) a description of the
eligible project;
(iii) the number
of net new permanent jobs likely to be created and/or the number of jobs likely
to be retained;
(iv) that the
project complies with the requirements of the trust fund legislation and this
Part; and
(v) such other
information as the corporation may require.
(d) Upon approval by the corporation of the
proposed assistance to an eligible project, the regional corporation may:
(1) draw down funds from the loan fund
account in the amount of any working capital loan so approved; or
(2) guarantee a loan by a banking
organization for the eligible project, provided that the regional corporation
maintains adequate reserves in the loan fund account as required by section
4209.4(b)
of this Part.
Renumbered
from 4209.8
New
York State Register July 11, 2018/Volume XL, Issue 28, eff.
7/11/2018
