New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter L - New York State Urban Development Corporation
Part 4240 - Small, Minority Business And Women-owned Business Enterprises Transportation Capital Assistance And Guaranteed Loan Program
Section 4240.6 - Government contractor loans

Universal Citation: 21 NY Comp Codes Rules and Regs ยง 4240.6

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

(a) The corporation may provide government contractor loans to small government contractors and certified government contracts for funds necessary to perform a government contract(s), subject to section 4240.4 of this Part and the following:

(1) in the event the corporation deems it necessary, such loans may be secured by assignment to the corporation of the amounts payable to the small government contractor or certified government contractor under the government contract(s) to be financed;

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

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

(4) 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:
(i) 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 agency, in the case of a subcontractor applicant;

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

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

(iv) 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;

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

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

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

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