New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter L - New York State Urban Development Corporation
Part 4213 - Minority And Women Business Development And Revolving Loan Fund Program
Section 4213.7 - Business terms

Universal Citation: 21 NY Comp Codes Rules and Regs ยง 4213.7

Current through Register Vol. 46, No. 12, March 20, 2024

Except as otherwise specifically provided in section 4213.5 of this Part, the following terms and conditions shall apply to program financial assistance:

(a) Interest rates on loans made by the corporation will be structured to reflect market conditions, project feasibility and the applicant's ability to repay. Interest rates may be increased during the term of the loan if the applicant fails to create and/or retain specified employment levels approved by the corporation.

(b) The standard term of program loans will be as follows:

(1) loans, the proceeds of which are used to acquire machinery and equipment, generally will be made for a term of three to seven years, depending upon the useful life of the collateral as determined by the corporation;

(2) working capital loans generally will be made for a term of one to four years;

(3) the term of construction loans generally will not exceed 24 months; and

(4) loans, the proceeds of which are used to acquire and improve real property, generally will not be made for a term exceeding 20 years. In a co-equal or coordinate mortgage situation, a UDC mortgage generally will match the term of the other mortgage.

(c) The repayment terms for loans secured by real estate or machinery and equipment generally will include level debt service over the life of the loan. In certain circumstances, payments of principal and/or interest may be deferred or graduated early in the repayment period. For working capital loans, repayment terms will be made consistent with working capital requirements.

(d) Security arrangements will be flexible and will depend upon the type of loan and the particular characteristics of a project. Whenever possible, program loans will be secured by a first lien on the realty, improvements, or other assets being financed, together with personal and/or corporate guarantees. Personal or corporate guarantees shall be required in all instances.

(e) Where other financing constitutes part of the applicant's overall funding package, written commitments for such financing satisfactory to the corporation shall be in place prior to the corporation being obligated with respect to any program assistance.

Disclaimer: These regulations may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.