Current through Register Vol. 46, No. 12, March 20, 2024
(a) In
determining whether to approve a request for program assistance for a project
(other than a commercial revitalization project) which satisfies the
eligibility criteria set forth in section
4212.3 of
this Part, the corporation shall consider whether and the extent to which the
proposed project satisfies the following criteria, based upon the data
contained in the project application submitted in accordance with the
requirements of section
4212.11 of
this Part:
(1) the total number of jobs
expected to be created or retained;
(2) the ratio of the number of jobs (to be
created or retained) to the amount of assistance provided by the program. In
general, financing will not be approved for projects that anticipate a return
of less than one full-time, permanent job for each $15,000 of program
assistance;
(3) the availability of
other funding sources;
(4) the
percentage of the total project cost that the corporation is being asked to
finance. Typically, the corporation's participation (including all funding
sources over which the corporation has discretion) will not exceed 33 percent
of the total estimated project cost. The corporation may permit program
financing in excess of 33 percent of total project cost in appropriate
circumstances, as determined by the corporation in light of such factors as the
project's debt servicing capability, the relative importance of the project's
public purpose and the likely economic and sociological consequences of a
failure to authorize such additional program financing;
(5) the ability of the applicant to carry out
the project in a manner consistent with the program;
(6) the size of the applicant's equity
contribution. In general, the corporation expects an applicant's equity
contribution to a project to be at least 10 percent of the total project
cost;
(7) the applicant's financial
circumstances;
(8) the impact of
the project on the local community;
(9) the ability of the applicant to repay the
project loan or the bank loan; and
(10) the availability of adequate collateral
to secure the project loan or the bank loan.
Additionally, the corporation shall consider the availability
of program funds.
(b) Applications for project grants (other
than commercial revitalization project grants) shall be evaluated based upon
the corporation's reasonable estimation of the suitability of the contemplated
improvements which are the subject of the feasibility study or preliminary
planning to fulfill the criteria listed in section
4212.3 of
this Part and in subdivision (a) of this section.
