New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter L - New York State Urban Development Corporation
Part 4242 - Jobs Now Program
Section 4242.4 - Assistance available
Universal Citation: 21 NY Comp Codes Rules and Regs ยง 4242.4
Current through Register Vol. 46, No. 12, March 20, 2024
Within available appropriations, ESD may provide one or more of the following types of assistance to eligible projects; provided, however that, except as may be further limited below, the maximum amount of assistance of any one of the following types for any one project generally shall not exceed $10,000 per job created as a result of the project.
(a) Job creation grants.
(1) Purpose. ESD may make grants to eligible
businesses under taking eligible projects, which grant may be used by the
recipient to defray its State or local tax liability for any taxable period
beginning on or after the date such grant is approved by ESD.
(2) Amount. The grant shall equal a portion,
not more than 50 percent, of the State income tax withheld from the salaries
paid to employees hired as a result of the eligible project, as shall be
determined by ESD after taking into consideration the anticipated economic
development benefits of the project, including the total number and nature of
jobs created, and the demand for program funds. The maximum amount of any job
creation grant is $1.5 million.
(3)
Disbursement. Job creation grant proceeds generally will be disbursed by ESD
proportionately with the establishment, by presentation of documentation
reasonably satisfactory to ESD, of the following:
(i) the number of new, permanent, full-time,
private-sector jobs that have been created out of the total projected to be
created;
(ii) the amount of State
income tax that has been withheld with respect to these jobs out of the total
projected to be withheld; and
(iii)
the amount and nature of the State or local tax liability that is due from and
payable by the business receiving the job creation grant, to which the job
creation grant will be applied, out of the total projected to be due and
payable.
(b) Worker training grants.
(1) Purpose. ESD may
make grants to eligible businesses undertaking eligible projects as full or
partial reimbursement of the cost incurred by such businesses in conducting
programs of worker training in connection with the eligible expansion or
attraction project, including, without limitation, programs of recruitment,
skills training and/ or upgrading, productivity enhancement and total
product/service quality improvement.
(2) Amount. The amount of any worker training
grants shall be as determined by ESD on a case-by-case basis within the general
limitation set forth in the introductory paragraph of this section.
(3) Disbursement. Worker training grants
shall be disbursed by ESD only upon completion of the worker training program,
or the portion thereof for which reimbursement is being sought, and the
submission of appropriate documentation evidencing the costs to be
reimbursed.
(c) Capital loans and grants.
(1) Purpose. ESD may make
loans and grants to eligible businesses undertaking eligible projects to
finance, in connection with such projects, the acquisition of land, buildings,
and machinery and equipment, or an interest therein; new construction,
renovation or leasehold improvements; infrastructure improvements, including,
without limitation, drainage systems, sewer systems, access roads, parking
areas, sidewalks, docks, wharves, water supply systems and demolition and site
clearance, preparation and improvement; and costs related to the above
including, without limitation, legal expenses, appraisal costs, brokerage
commissions, interest costs, survey expenses, design, architectural and
engineering fees and expenses, site preparation expenses and relocation
expenses; provided, however, that program funds shall not be awarded for
consultant costs relating to the preparation of an application for program
assistance.
(2) Amount. The amount
of any capital loan or grant shall be as determined by ESD on a case-by-case
basis within the general limitation set forth in the introductory paragraph of
this section.
(3) Disbursement.
Capital loans and grants shall be disbursed by ESD only upon completion of the
capital improvement that is the subject of the assistance and the submission of
appropriate documentation.
(d) Interest subsidy grants.
(1) Purpose. ESD may make grants for the
benefit of eligible businesses undertaking eligible projects to offset debt
service costs associated with loans made to such businesses by a private
lending institution, either directly or through an intermediary such as an
industrial development agency of the State, to finance, in connection with such
projects, the acquisition of land, building, or machinery and equipment, or an
interest therein; new construction, renovation or leasehold improvements; and
infrastructure improvements, as set forth in paragraph (c)(1) of this
section.
(2) Amount. The amount of
any interest subsidy grant shall be as determined by ESD on a case-by-case
basis within the general limitation set forth in the introductory paragraph of
this section; provided, however, that interest subsidy grants approved by the
corporation generally shall not reduce the debt service costs associated with
the eligible loan to less than three percent.
(3) Disbursement. Interest subsidy grants
shall be disbursed by ESD directly to the private lending institution
simultaneously with or subsequent to the closing of the eligible loan and the
submission of appropriate documentation evidencing the same.
(e) Working capital loans and loan guarantees.
(1) Purpose. ESD may make working
capital loans and loan guarantees to or for the benefit of eligible businesses
undertaking eligible projects to finance capital-related expenses such as,
without limitation, accounts receivable and inventory, provided that such
expenses are necessary to upgrade and reconfigure the business' competitive
position. Working capital assistance shall be provided primarily in the form of
loan guarantees; working capital loans shall be provided only under limited
circumstances, as determined in ESD's sole discretion.
(2) Amount. The amount of any working capital
loan or working capital loan guarantee shall be as determined by ESD on a
case-by-case basis within the general limitation set forth in the introductory
paragraph of this section; provided, however, that working capital loan
guarantees approved by the corporation generally shall not be for more than 60
percent of the loan being guaranteed.
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