New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter L - New York State Urban Development Corporation
Part 4230 - Minority And Women-owned Business Development And Lending Program
Section 4230.13 - Evaluation criteria
Current through Register Vol. 46, No. 12, March 20, 2024
The corporation shall evaluate applications for incubator assistance and technical assistance in accordance with sections 4230.11(d) and 4230.12(f) of this Part, respectively. The corporation shall evaluate each application for program assistance in the form of a government contractor loan, a government contractor guaranty, a business development loan, a business development guaranty, a franchise loan, franchise loan guaranty in accordance with the following criteria:
(a) the location of the project. Priority consideration shall be given to the comparative degree of economic distress within the areas in which the project is located;
(b) the total number of jobs expected to be created or retained in the State as a result of the requested assistance and the ratio of the number of jobs to be created or retained to the amount of assistance provided under the program and to the total project cost. In general, financial assistance will not be approved for projects that anticipate a return of less than one job for every $20,000 of program financial assistance;
(c) the availability of other funding sources and evidence, if any, provided by the applicant of its previous attempts to obtain financing through other sources and of the results of the attempts. To the maximum extent possible, program assistance shall be provided in conjunction with private or other public funding sources;
(d) the financial feasibility of the project and the creditworthiness of the applicant;
(e) the percentage of the total project cost that the corporation is being asked to finance. Business development loans and franchise loans will generally not exceed 60 percent of the total funding for a project;
(f) the size of the applicant's equity contribution. In general, except in the case of government contractor loans and government contractor loan guarantees, the corporation expects an applicant's equity contribution to a project to be equal to at least 10 percent of the total project cost;
(g) the ability of the applicant to carry out the project in a manner consistent with the program;
(h) the financial condition of the applicant, particularly its anticipated ability to meet the repayment schedule of any loan it receives under the program and its potential for growth;
(i) the anticipated impact of the project on the general employment and economic conditions of the community in which it will be located. Applications for speculative financial investments will generally not receive assistance from the corporation unless they propose to significantly improve the general employment and economic conditions of the community in which they will be located;
(j) the level of local public support for the project;
(k) the likelihood of accomplishing the project in a timely fashion; and
(l) the availability of program funds. Approval of applications shall be subject to the availability of funds allocated to the program and made according to the comparative quality of the applications received.
