(a) Assistance available. The corporation may
make loans and grants, as set forth below and within available appropriations,
for child care assistance projects. Child care assistance projects are projects
for the establishment, expansion and development of licensed not-for-profit
child day care centers which serve the needs of small- and medium-sized
businesses, health-related businesses, and degree-granting institutions of
higher education and which meet the other requirements of this section. A
small- or medium-sized business is an industrial, service or other business,
which is not a retail business or overnight lodging facility, which employs, on
a full-time basis, 500 or fewer employees within the State or at the site to be
serviced by the child day care center to receive program assistance. The amount
of financial assistance provided by the corporation hereunder in the form of a
loan or grant shall not exceed the respective maximums set forth below for each
such type of assistance and the total amount of child care assistance project
assistance awarded to any project shall not exceed the lesser of $250,000 or 85
percent of total project cost.
(1) Loans.
(i) The corporation may make child care
assistance project loans to:
(a) a small- and
medium-sized business, as defined in this subdivision, health-related business
or degree-granting institution of higher education (including the State
University of New York and its affiliates) that has provided, or committed to
provide, financial assistance for the establishment, expansion and/or
development of a licensed not-for-profit child day care center (a sponsoring
company), or a consortium of such entities, which will contract, prior to
receipt of the program assistance, with a not-for-profit child care provider to
provide services at the facility to be financed. Generally, an equity
contribution to the project by or on behalf of the sponsoring companies of at
least 10 percent of total project cost shall be required, part of which may be
in the form of an in-kind contribution at the corporation's discretion taking
into consideration the nature of the applicant, the project's requirements and
such other factors as the corporation deems appropriate;
(b) a not-for-profit child care
provider;
(c) a not-for-profit
corporation which will contract, prior to receipt of the program assistance,
with a not-for-profit child care provider to provide services at the facility
to be financed.
(ii)
Child care assistance project loans may be made by the corporation for a total
amount not to exceed the lesser of 50 percent of total project cost or $250,000
and may be used to finance:
(a) the
acquisition, design, construction, improvement or renovation of a licensed
not-for-profit child day care facility;
(b) the purchase of permanently installed
machinery and equipment in connection with the establishment or expansion of a
licensed not-for-profit child day care facility;
(c) working capital.
(iii) Child care assistance project loans may
not be used to finance:
(a) tax or employee
benefit arrearages; or
(b) any
expense incurred prior to initiation of the application process for REDPP
assistance.
(iv) Terms.
Within the limitations established hereunder, terms and security arrangements
will be flexible, depending on the type of loan and particular characteristics
of the project under consideration. No loan shall be disbursed without firm
commitments from all other funding sources.
(a) The interest rate on, and security
arrangements for, a child care assistance project loan will be set at the time
the directors approve an application and will be fixed based upon what is
necessary to make the project feasible, market conditions, the applicant's
ability to repay and other project requirements.
(b) Loans made to finance the acquisition of
real property or the acquisition, renovation or construction of facilities
generally may be made for a maximum term of 20 years. In a co-equal and
coordinate mortgage situation, a mortgage granted to the corporation will match
the term of the other mortgagee(s).
(c) Loans made to finance the acquisition of
machinery and equipment generally may be made for a maximum term of seven years
or the useful life of the collateral, whichever is less.
(d) Working capital loans generally will be
made for a term of from one to four years.
(e) Construction loans generally will be made
for a maximum term of two years.
(f) Loans in the form of permanent financing
secured by fixed assets will be preferred. Construction loans approved by the
corporation hereunder will not be funded before secure commitments for
permanent financing have been obtained.
(2) Grants.
(i) The corporation may make child care
assistance project grants to:
(a) a
not-for-profit child care provider;
(b) a not-for-profit corporation which will
contract, prior to receipt of the child care assistance project grant, with a
not-for-profit child care provider to provide child care services at the
facility.
(ii) Child
care assistance project grants may be made by the corporation for a total
amount not to exceed the lesser of 40 percent of total project cost or $100,000
and may be used to finance general project development costs including, without
limitation:
(a) studies to assess the
feasibility of, or preliminary planning for, the development of a licensed
not-for-profit child day care facility;
(b) acquisition, design, construction,
improvement or renovation in connection with the establishment of a licensed
not-for-profit child day care facility; and
(c) the purchase of permanently installed
machinery and equipment necessary to establish a licensed not-for-profit child
day care facility.
(iii)
Child care assistance project grants may not be used to finance:
(a) working capital;
(b) tax or employee benefit arrearages;
or
(c) any expense incurred prior
to initiation of the application process for REDPP assistance.