N.Y. Comp. Codes R. & Regs. tit. 21 § 4213.6

Current through Register Vol. 46, No. 25, June 18, 2024

Section 4213.6 - Evaluation criteria

The corporation shall evaluate the applications for financial assistance in accordance with the following criteria:

(a) the location of the project. Priority consideration shall be given to the comparative degree of economic distress within the areas in which the project is located;

(b) the total number of jobs expected to be created or retained in the State as a result of the requested assistance and the ratio of the number of jobs to be created or retained to the amount of assistance provided under the program and to the total project cost. In general, financial assistance will not be approved for projects that anticipate a return of less than one job for every $20,000 of program financial assistance;

(c) the availability of other funding sources and evidence, if any, provided by the applicant of its previous attempts to obtain financing through other sources and of the results of the attempts. To the maximum extent possible, program assistance shall be provided in conjunction with private or other public funding sources;

(d) the financial feasibility of the project and the creditworthiness of the applicant;

(e) the percentage of the total project cost that the corporation is being asked to finance. Except in the case of government contractor loans, government-sponsored residential construction loans, entrepreneurial assistance loans and linked deposit loans, the amount of financial assistance provided by the program will generally not exceed 60 percent of the total funding for a project;

(f) the size of the applicant's equity contribution. In general, except in the case of government contractor loans and government-sponsored residential construction loans, the corporation expects an applicant's equity contribution to a project to be equal to at least 10 percent of the total project cost;

(g) the ability of the applicant to carry out the project in a manner consistent with the program;

(h) the financial condition of the company, particularly its anticipated ability to meet the repayment schedule of any loan it receives under the program and its potential for growth;

(i) the anticipated impact of the project on the general employment and economic conditions of the community in which it will be located. Applications from the following enterprises or for the following purposes will generally not receive assistance from the corporation unless they significantly improve the general employment and economic conditions of the community in which they will be located:

(1) speculative financial investments;

(2) refinancing of equity committed to the enterprise; and

(3) acquisition of equipment that is readily leasable from vendors or manufacturers;

(j) the level of local public support for the project;

(k) the likelihood of accomplishing the project in a timely fashion;

(l) the availability of program funds. Loan approval shall be subject to the availability of funds allocated to the program and made according to the comparative quality of the applications received;

(m) in the case of business development loans, preference will be given to enterprises involved in manufacturing, distribution or wholesaling; and

(n) in the case of working capital loans, preference will be given to applicants who have obtained an agreement from a commercial lending institution, or other institution chartered under Federal or State regulations as a depository organization, to act as a co-lender and/or to act as the loan administrator, at the borrower's expense, of any program working capital loan that may be approved. Applicants should identify any such bank or financial institution at the time of submitting the application for program assistance.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 4213.6