N.Y. Comp. Codes R. & Regs. tit. 21 § 4208.6

Current through Register Vol. 46, No. 45, November 2, 2024

Section 4208.6 - Business terms

(a) Project loans will not be made for less than $100,000. Terms and security arrangements will be flexible, depending on the type of loan and the particular characteristics of a project. Project loans that are secured by fixed assets will be preferred.

(b) Written commitments from other funding sources necessary for completion of the project will generally be required before disbursement by the corporation of the assistance. Approved construction 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 term for project loans will be as follows:

(1) loans for which the proceeds are used to acquire or improve real estate generally will not exceed 30 years;

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

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

(4) working capital loans generally will be made for one to four years.

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

N.Y. Comp. Codes R. & Regs. Tit. 21 § 4208.6