New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter L - New York State Urban Development Corporation
Part 4250 - Small Business Revolving Loan Fund
Section 4250.9 - General requirements

Universal Citation: 21 NY Comp Codes Rules and Regs ยง 4250.9

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

(a) Program funds shall be disbursed to a community based lending organization by the corporation in the form of a program loan.

(1) The term of the program loan shall commence upon closing of the program loan fund agreement between the corporation and the community based lending organization.

(2) The program loan shall carry a low interest rate determined by the corporation based on then prevailing interest rates and the circumstances of the community based lending organization.

(b) Notwithstanding the performance of the business loans made by the community based lending organization using program funds, the community based lending organization shall remain liable to the corporation with respect to any unpaid amounts due from the community based lending organization pursuant to the terms of the corporation's program loan to the community based lending organization.

(c) At the discretion of the corporation, a portion of program loan funds may be disbursed to the community based lending organization in the form of a grant or forgivable loan provided that those funds are used by the community based lending organization for administrative expenses associated with business loans to eligible borrowers for eligible projects, loan-loss reserves, or other eligible expenses as may be approved in writing by the corporation.

(d) The corporation may establish a program fund for program use and pay into such fund any funds available to the corporation from any source that is eligible for program use, including moneys appropriated by the State.

(e) Interest received by the corporation from program loans to community based lending organizations may be used at the discretion of the corporation for program loans and the management, marketing, and administration of the program.

(f) If the use of a community development financial institution is not practicable based upon an assessment of geographic and administrative capacity and other factors as determined by the corporation, then the corporation is authorized, within available appropriations, to provide low interest loans to the following other local community based lending organizations: small business lending consortia, certified development companies, providers of United States Department of Agriculture business and industrial guaranteed loans, United States Small Business Administration loan providers, credit unions and community banks.

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