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
Current through Register Vol. 44, No. 38, September 21, 2022
(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: