New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter L - New York State Urban Development Corporation
Part 4244 - Metropolitan Economic Revitalization Program
Section 4244.6 - Business terms

Universal Citation: 21 NY Comp Codes Rules and Regs ยง 4244.6

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

(a) Project loans and/or alternative financial assistance will generally be made for less than $5,000,000. Terms and security arrangements will be flexible, depending on the type of loan and the particular characteristics of a project or undertaking. Project loans that are secured by fixed assets and/or a letter of credit will be preferred.

(b) Written commitments from other funding sources necessary for completion of the project or undertaking will generally be required before disbursement by the corporation of its assistance. Approved loans will not be funded before secure commitments for permanent financing have been obtained.

(c) Interest rates on project loans will be set at the time the corporation's directors approve an application. Rates and terms will reflect market conditions, the applicant's ability to repay and project requirements. Interest rates may be increased during the term of the loan if the applicant fails to create or retain specified employment levels approved by the corporation.

(d) The standard terms for project loans and alternative financial assistance will be as follows:

(1) loans for which the proceeds are used to acquire or improve real estate will generally not exceed 20 years;

(2) loans for which the proceeds are used to acquire machinery and equipment generally will be made up to seven years, or the useful life of the collateral, whichever is less;

(3) construction loans generally will not exceed 24 months;

(4) working capital loans generally will be made up to four years; and

(5) standard repayment terms will include level debt service payments over the term of a loan. In certain circumstances, deferred or graduated payments may be permitted, provided that the loan will be fully amortized over the remainder of the loan term.

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