N.Y. Comp. Codes R. & Regs. tit. 21 § 4213.8

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

Section 4213.8 - Application and review

(a) All persons upon request therefor shall receive an information package including a copy of an informational bulletin describing the program and the forms of program assistance available.

(b) To apply for assistance from the loan fund, a potential applicant should request an application from: Director, Minority and Women Business Development and Revolving Loan Fund, New York State Urban Development Corporation, 1515 Broadway, New York, NY 10036-8960, (212) 930-0209. The potential applicant will then be sent a formal application. Program applications require that the following information, as applicable to a particular project, be submitted:

(1) information about the company, including its history, ownership, size, primary products or services rendered, major customers, and major assets;

(2) information about the proposed project, including a proposed budget setting forth total project cost, total assistance requested, proposed uses of the loan funds and other proposed sources of funding; the number of jobs to be created or retained; and the current status of the project;

(3) a description of the need for the requested funds, a specific justification of the loan request, a description of the expected impact of the requested program assistance on the company and the community, and an indication of the reason for seeking State assistance;

(4) information about the applicant's previous business activities;

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

(6) copies of the schematic architectural drawings, scope of work descriptions, site investigation reports and construction cost estimates;

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

(8) a complete set of financial statements for at least the three preceding fiscal years;

(9) a business plan, including a market analysis, description of marketing strategy and operating pro forma financial statements going forward five years, including underlying assumptions based on the business plan, income statements, balance sheets and cash flow statements;

(10) a list of proposed collateral, with appraisals or other documentation of the value of the proposed collateral;

(11) letters of commitment from other financing sources involved in the project;

(12) a copy of the executed or proposed purchase option or contract for sale;

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

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

(15) such additional information as the corporation may determine to be necessary for a complete funding analysis to be made.

(c) The program application is divided into two sections. Section I requests basic information, from the categories of information set forth in subdivision (b) of this section, regarding the applicant and the proposed project which will enable corporation staff to determine the eligibility of the applicant and the proposed project for program funding, to make a preliminary determination of the feasibility of the proposed project and the creditworthiness of the applicant and to determine whether technical assistance in the structuring of the transaction may be necessary or desirable. Section II requests more detailed information which will permit corporation staff to perform a full credit analysis and to determine the proposed project's compliance with program requirements and its feasibility, so as to formulate a funding recommendation.

(d) Program applicants have the option of completing both sections of the program application and submitting them simultaneously to the corporation for a full review. Alternatively, program applicants may complete Section I and obtain a preliminary determination by the corporation regarding eligibility and feasibility.

(e) If an applicant opts to submit Section I for preliminary analysis, the corporation will review the information for completeness, eligibility, preliminary feasibility and the need for technical assistance. If staff determine that the project appears to be eligible for funding, and that funding for such project appears to be feasible, the applicant will receive a written invitation to submit Section II of the application. If staff determine that the project is either ineligible, not developed fully enough to merit funding consideration at that time or that it would be unfeasible to fund such project, the applicant will receive a letter advising him or her of other available sources of funding, or recommending technical assistance which, in many cases, is available through the corporation and other State-funded organizations. Projects referred for technical assistance may be eligible for consideration for program assistance again once the technical assistance is obtained.

(f) Each applicant will receive written acknowledgment by the corporation of its receipt, within 20 days thereof, of either Section II from an applicant that has received a preliminary determination of eligibility and feasibility or of Sections I and II from an applicant opting to submit them simultaneously. The acknowledgment will comment specifically on the completeness of the information submitted. Applicants that have not supplied all of the required information will be notified of what is missing and asked to provide it.

(g) Upon receipt of a complete Section II, or combined Section I and II, as the case may be, a project team will be assigned to review the project. The applicant will be informed that the application is under consideration and that a decision will be made, generally within 45 days, as to whether, and if so, in what amount the application will be presented for approval by the corporation.

(h) If a proposal is determined to be appropriate for funding under the criteria set forth in this Part, it will be presented to the corporation's directors for approval. The directors generally meet once a month. Loans in an amount of less than $100,000 may be authorized by the president and chief executive officer of the corporation, acting on behalf of the corporation, subject to such authorization's being ratified by the directors of the corporation prior to submission of the prospective financing to the State Public Authorities Control Board ("PACB") for approval, if necessary. In the event a project is approved or ratified by the directors, in the manner required for the particular project, it will, if necessary, then be reviewed by the PACB, which also generally meets once a month.

(i) Upon the completion of the approval process, the corporation will issue, by letter, a commitment of limited time duration for approved program assistance. The commitment letter will set forth the terms and conditions for the authorized assistance and will specify the date by which such assistance must be closed or the commitment therefor will expire. At the discretion of the corporation, the commitment expiration date may be extended. Projects for which a commitment expiration date may be extended shall include, but not be limited to:

(1) projects which experience a delay in obtaining financing or equipment required to be obtained prior to the making of the proposed program loan;

(2) projects which experience a delay in construction and/or renovation required to be completed prior to the making of the proposed program loan; and

(3) in the case of proposed government contractor loans and government-sponsored residential construction loans, projects in which the eligible enterprise experiences a delay in the commencement of its work pursuant to the government contract.

(j) Notwithstanding the foregoing, all applications for program assistance will be reviewed, upon submission, to identify manufacturing and industrial firms that may be eligible for industrial technology extension service ("ITES") assistance. Upon determination that an applicant may be eligible for participation in the ITES, the application will be forwarded to the director of the ITES with a request that the firm's eligibility be evaluated by ITES and, if determined to be eligible, that informational materials be sent directly to the prospective ITES participant.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 4213.8