New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter L - New York State Urban Development Corporation
Part 4255 - Life Sciences Initiative Program
Section 4255.2 - Capital assistance program

Universal Citation: 21 NY Comp Codes Rules and Regs ยง 4255.2

Current through Register Vol. 45, No. 52, December 27, 2023

(a) Definitions.

For the purposes of this section, the terms below shall have the following meaning:

(1) Life sciences shall mean advanced and applied sciences that expand the understanding of human physiology and have the potential to lead to medical advances or therapeutic applications including, but not limited to, academic medical centers, agricultural biotechnology, biogenerics, bioinformatics, biomedical engineering, biopharmaceuticals, biotechnology, chemical synthesis, chemistry technology, diagnostics, genomics, image analysis, marine biology, marine technology, medical devices, nanotechnology, natural product pharmaceuticals, proteomics, regenerative medicine, RNA interference, stem cell research, clinical trials, including, but not limited to, neurological clinical trials and veterinary science.

(2) Life sciences entity shall mean a business corporation, partnership, firm, unincorporated association, or any other entity engaged in life sciences research, development, manufacturing or commercialization, or collaborating with entities engaged in life sciences research, development, manufacturing or commercialization.

(3) Corporation shall mean the New York State Urban Development Corporation doing business as Empire State Development.

(4) Life sciences economic development benefits means the creation, expansion, enhancement or acceleration of life sciences programs throughout the State that leads to:
(i) the commercialization of life sciences in New York State;

(ii) the creation or retention of jobs in the life sciences industry employing full time permanent employees;

(iii) the promotion of the life science ecosystem within a region of the State;

(iv) new patents in life science;

(v) additional commercial laboratory space; or

(vi) additional venture capital money for Life Sciences Entities in New York State.

(5) Evaluation criteria shall mean the criteria set forth in subdivision (d) of this section to be applied by the corporation in evaluating applications for Capital Assistance Program funding.

(6) Full time permanent employee shall mean:
(i) a full-time, permanent, employee on a life sciences entity's payroll, who has worked at the project location for a minimum of 35 hours per week for not less than 4 consecutive weeks and who is entitled to receive the usual and customary fringe benefits extended by the entity to other employees with comparable rank and duties; or

(ii) two part-time, permanent, private-sector employees on the life sciences entity's payroll, who have worked at the project location for a combined minimum of 35 hours per week for not less than 4 consecutive weeks and who are entitled to receive the usual and customary fringe benefits extended by the entity to other employees with comparable rank and duties.

(b) Available capital assistance.

The Capital Assistance Program makes available financial assistance in the form of grants or loans (secured or unsecured), or a combination of such assistance, or contracts for services in the corporation's discretion, for use by life sciences entities for eligible uses as set forth in subdivision (e) of this section.

(c) Application process.

(1) Applications from life sciences entities will be accepted on a rolling basis throughout the year. Life sciences entities requesting capital assistance shall provide the following information about the project and the applicant, as applicable, in a form provided by, or otherwise acceptable to, the corporation including, without limitation, the following:
(i) a description of the project or activity, including information indicating how the proposed project or activity will create, expand, enhance or accelerate the commercial life science industry through programs, research, job creation and retention within New York State and will result in the other life sciences economic development benefits as defined in paragraph (a)(4) of this section;

(ii) the number and amount of other funding, including Federal, that the applicant has applied for, is eligible for or has received for the same initiative;

(iii) the number of jobs in the life sciences industry employing full time permanent employees to be created or retained as a result of the proposed project or activity, the titles or classifications of such jobs and the average annual salaries associated with each;

(iv) information about the applicant, including but not limited to, its history, ownership, size, primary products offered or services rendered, major customers, its market and marketing strategy;

(v) information about the proposed project financing including, but not limited to, total project cost, total program assistance requested, a budget breakdown of the sources and proposed uses of all funding, a description of the need for the requested program funding and justification for the amount requested;

(vi) a description of how the project will be implemented, including a project schedule, and the current status of the project;

(vii) anticipated project results; and

(viii) information with respect to the site of the project and the impact, if any, on the environment and any landmark or historic properties.

(2) Depending on the nature of the project or activity (such as acquisition of machinery and equipment; acquisition, construction or renovation of property, etc.) and the type of assistance requested, life science entities may be required to provide other information about the project, including some or all of the following, as may be appropriate:
(i) a complete set of financial statements for at least the three preceding fiscal years, operating pro formas going forward three years, and current financial statements for any proposed guarantors;

(ii) a list of proposed collateral, with any available appraisals;

(iii) resumes of principal officers and a list of owners, shareholders, or partners;

(iv) a copy of any related real estate purchase option or contract for sale;

(v) a legal description and survey of the property;

(vi) a construction-to-occupancy schedule; and

(vii) copies of any preliminary architectural drawings, scope of work, cost estimates and schematics.

(3) Applications may include a request for funding for single or multiple life sciences projects or activities.

(4) Upon receipt of the application, the corporation shall review the application for eligibility, completeness, and conformance with the applicable requirements of these guidelines. Applications shall be processed in full compliance with the applicable provisions of section 16-aa of the New York State Urban Development Corporation Act.

(5) The corporation may issue a request for proposals for contracts for services in lieu of an application where it deems it appropriate. Such request for proposals will set forth eligibility guidelines which may differ from those contained herein.

(d) Evaluation criteria.

The corporation shall evaluate applications for capital assistance in accordance with the following criteria as applicable:

(1) the financial condition of the entity undertaking the project, including its profitability or potential to generate profits; liquidity; ability to service debt and its leverage ratio;

(2) management experience, ability and relevant knowledge and the relevant entity's general ability to carry out the project;

(3) satisfactory credit references;

(4) the absence of State or local tax judgments; provided however, in the case of a tax certiorari proceeding a life sciences entity would not be considered in arrears until a final decision is made with respect to such proceeding;

(5) whether the applicant clearly demonstrates how the proposal will result in life sciences economic development benefits and the likelihood that the project will result in life sciences economic development benefits to the State;

(6) the availability of other sources of funding, including offers of assistance from locations outside of the State, including the Federal government, and the amount of private financing leveraged by program funds; and

(7) the corporation may consider the terms of any economic development assistance available as an incentive for the location of the proposed project outside the State.

(e) Eligible uses.

Capital assistance program funds may be used for:

(1) new construction, renovation or leasehold improvements;

(2) the acquisition or leasing of land, buildings, machinery and equipment;

(3) working capital, including, without limitation, workforce development;

(4) feasibility or planning studies related to the development of commercial life sciences in the State; and

(5) contracts for services to support New York life sciences' ecosystem.

(f) Ineligible uses.

Institutions that are exclusively health care providers and/or requests for the purchase of equipment associated with standard healthcare delivery are not eligible for capital assistance program funding.

(g) Reporting requirements.

Applicants shall submit an annual report satisfactory to the corporation on the operation and accomplishments of the project including, without limitation, a description of the activities undertaken, the economic impact of the project, the number and amount of other sources of funding for the project including Federal funds, jobs employing full time permanent employees created and retained, and the average salary of such jobs.

Amended New York State Register May 22, 2019/Volume XLI, Issue 21, eff. 5/2/2019

Amended New York State Register November 20, 2019/Volume XLI, Issue 47, eff. 11/20/2019

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