Current through Register Vol. 46, No. 12, March 20, 2024
(a) Pursuant to
section 9-a of the UDC Act, the corporation may provide, within available
appropriations, financial assistance through project loans to small-and
medium-sized business assistance projects as defined in section 3(6)(f) of the
UDC Act. The proceeds of such project loans may be used to finance costs
associated with the following activities:
(1)
industrial development assistance to industrial firms for:
(i) renovation or rehabilitation of
industrial plants that are economically inefficient due to the need for changes
in design, construction, technology or production processes;
(ii) renovation or rehabilitation of existing
facilities for reuse as an industrial facility;
(iii) acquisition of real property and
related improvements;
(iv) new
construction;
(v) working capital;
or
(vi) acquisition of modern
production technology, including machinery, equipment and computerized design
and control systems required to improve production processes, expand existing
or enter new markets, or to otherwise remain competitive;
(2) child care facility assistance to
industrial firms for the establishment or expansion of certain child day-care
facilities, including:
(i) acquisition of
real property and related improvements;
(ii) new construction or renovation of
existing improvements; and/or
(iii)
acquisition of permanently installed equipment.
To be eligible for this assistance, a child-care facility
("Facility") must:
(iv) be
located on the work site of the industrial firm sponsoring the facility or at a
proximate site where a consortia of industrial firms are sponsoring the
Facility;
(v) be used primarily by
the children or employees of the company or companies sponsoring the
Facility;
(vi) not be operated for
profit;
(vii) demonstrate an
ability to obtain, from the appropriate governmental agencies, all necessary
approvals and licenses required to operate the Facility; and
(viii) demonstrate an ability to prevent
access by children to any equipment in facilities which could be injurious to
their health or safety.
(3) Ancillary costs related to projects for
which assistance is provided under paragraphs (1) and (2) of this subdivision,
such as legal expenses, appraisal costs, brokerage commissions, interest costs,
survey expenses, architectural and engineering fees, site preparation expenses
and relocation expenses, may be financed with the proceeds of project
loans.
(b) The following
costs are ineligible for funding under this program:
(1) expenses incurred prior to application
for program assistance;
(2)
financing for retail, office, commercial or housing development projects;
and
(3) payment of tax or employee
benefit arrearages.
(c)
In order to provide assistance hereunder, the corporation must have made
certain findings specified in section 10 of the UDC Act. Assistance will be
predicated upon the ability of the corporation to make such findings, which, in
the case of small- and medium-sized business assistance projects, consist of
the following:
(1) that the area in which the
project will 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;
(2) that the project demonstrates market,
management and financial feasibility and has a clear likelihood of
success;
(3) that the industrial
firm provides at least a 10-percent equity contribution and such contribution
is not derived from other governmental sources;
(4) that the requested financial assistance
is not available from other public or private financing sources on terms
compatible with the successful completion of the project;
(5) that the project will not result in the
relocation of any industrial firm from one municipality within the State to
another municipality, except under one of the following conditions:
(i) when an industrial firm is relocating
within a municipality with a population of at last one million, where the
governing body of such municipality approves such relocation; or
(ii) the corporation notifies each
municipality from which such industrial firm will be relocated, and each
municipality agrees to such relocation; and
(6) that the project is not for the purpose
of refinancing any portion of the total project cost or other existing loans or
debts of the project sponsor or owner. A project loan for child-care facility
assistance shall be made only upon the additional determination by the
corporation that such child-care facility is necessary to improve or maintain
the productivity of the company or companies sponsoring the project.