New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter L - New York State Urban Development Corporation
Part 4235 - Job Retention And Defense Industry Working Capital Loan Program
Section 4235.7 - Business terms
Current through Register Vol. 46, No. 12, March 20, 2024
(a) Working capital loans and loan guarantees shall be for a minimum amount of $500,000 and shall cover a period of up to three years, to be reviewed and approved annually by the chairman of the corporation. The implementation of the company's plan to improve its competitive position on an ongoing basis shall be one of the criteria to be considered by the corporation as a condition of renewal. A personal or corporate guarantee of the principal owner of the business shall be required for all working capital loans and loan guarantees.
(b) Interest rates for working capital loans will be set at the time the directors of the corporation approve an application. Interest rates may be increased during the term of the loan if the applicant fails to comply with specific covenants or maintain employment levels approved by the corporation. Rates and terms will be fixed based upon what is necessary to make the project feasible, and will reflect market conditions and project requirements.
(c) Loans shall be adequately secured. The adequacy of security shall be determined at the sole discretion of the corporation.
(d) Working capital loans and loan guarantees made by the corporation typically shall not exceed 80 percent of the total credit facility. The corporation shall not assume 100 percent of the risk of any working capital loan or loan guarantee; a participating eligible lending organization shall be required to share the risk with the corporation.
