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 4230.7 - Contractor development assistance

Universal Citation: 21 NY Comp Codes Rules and Regs ยง 4230.7

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

(a) The corporation may, directly and through cooperative agreements with municipalities, authorities, agencies, and eligible banking organizations, provide contractor development assistance in the form of:

(1) government contractor loans or government contractor loan guarantees;

(2) government contractor technical assistance; and

(3) government contractor bonding assistance.

(b) Government contractor loans and government contractor loan guarantees.

(1) The corporation may provide government contractor loans to certified government contractors for funds necessary to perform a government contract(s), subject to section 4230.4 of this Part and the following:
(i) in the event the corporation deems it necessary, such loans may be secured by assignment to the corporation of the amounts payable to the certified government contractor under the government contract(s) to be financed;

(ii) the government contract(s) must have been awarded by the governmental entity or agency prior to disbursement of government contractor loan funds;

(iii) the government contract(s) must be of sufficient magnitude to enable the certified government contractor to repay the government contractor loan;

(iv) the amount of the government contractor loan generally shall not exceed 50 percent of the annual value of the government contract(s) based on the value of contract receivables acceptable to the corporation, which receivables shall include, but not be limited to:
(a) receivables based on invoices verified as due and payable by the government agency, in the case of a prime contractor applicant, or by the prime contractor, in the case of a subcontractor applicant;

(b) receivables related to the specific government contract(s) to be financed by the corporation;

(c) receivables that are, generally, not more than 90-120 days old; and

(d) in the case of government contracts that are "not to exceed" contracts, receivables estimated on the basis of prior, similar contracts executed by the government agency;

(v) no more than one government contractor loan shall be outstanding to any one applicant at any given time;

(vi) repayment terms will be made consistent with working capital requirements under the government contract(s) to be financed; and

(vii) the amount of the government contractor loan shall not be less than $20,000 and generally shall not exceed $500,000.

(2) The corporation may provide government contractor loan guarantees to eligible banking organizations proposing to lend to certified government contractors, in accordance with section 4230.10 of this Part.

(c) The corporation may provide government contractor technical assistance to eligible government contractors, as set forth in section 4230.12 of this Part.

(d) The corporation may provide government contractor bonding assistance through the creation of, or assistance to, a minority and women bonding guarantee program to enable eligible government contractors to meet payment or performance bonding requirements. Contractor bonding assistance may include the provision of working capital loans to eligible government contractors that have secured contracts through participation in the program. To provide government contractor bonding assistance, the corporation shall either:

(1) establish criteria for the bonding guarantee program and for any required escrow funds, which criteria shall include detailed provisions for eligibility; or

(2) if the corporation is providing assistance to a program other than one established by the corporation, review and approve the criteria established for such other program.

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