N.Y. Comp. Codes R. & Regs. tit. 21 § 4215.7

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

Section 4215.7 - Ineligible projects

(a) Loans from a minority and women revolving loan trust fund account pursuant to section 4215.6 of this Part shall not be made available for the following projects:

(1) projects that would result in the relocation of any business operation from one county, city, town or village within the State to another, except under one of the following conditions:

(i) a business is relocating within a county, city, town or village with a population of at least one million, where the governing body of such county, city, town or village approves such relocation; or

(ii) the administering corporation notifies each county, city, town or village from which such business operation will be relocated and each county, city, town or village agrees to such relocation;

(2) projects of newspapers, broadcasting or other news media, medical facilities, libraries, community or civic centers, or public infrastructure improvements;

(3) projects that involve refinancing any portion of the total project cost or other existing loans or debts of an applicant, except for the purpose of transferring to the employees or to other local interests ownership of a company that would otherwise depart from or cease or substantially reduce operations in the State. For the purposes of this paragraph, a substantial reduction of operations in the State shall mean:

(i) the loss by an eligible business of 25 or more permanent jobs; or

(ii) the loss by an eligible business of fewer than 25 permanent jobs, if such a loss would have a major adverse impact on the community in which the business is located;

(4) projects that involve providing funds, directly or indirectly, for payment, distribution, or as a loan, to owners, partners or shareholders of an applicant, except as ordinary income for services rendered;

(5) retail projects, except where the administering corporation finds there will be an increase in net new permanent jobs; and

(6) to the extent permitted by law, projects in which:

(i) a full-time employee of the State or any agency, department, authority, public benefit corporation, or political subdivision thereof would receive a loan from an administering corporation; or

(ii) an eligible business, of which a majority ownership interest is beneficially controlled by any such employee, would receive a loan from an administering corporation.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 4215.7