N.Y. Comp. Codes R. & Regs. tit. 21 § 4230.15

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

Section 4230.15 - 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) All applications for program assistance shall be addressed to:

The Director of the Minority and

Women-Owned Business Development and Lending Program

New York State Urban Development Corporation

1515 Broadway

New York, NY 10036-8960

(c) Applications from eligible banking organizations and other financial institutions that seek to be selected as intermediaries for the receipt of a linked deposit or loan guarantee shall be in the form of a written proposal submitted to the corporation.

(d) Applications from administering corporations that seek to be selected as intermediaries for the receipt of trust fund proceeds shall be in the form of a response to a request for proposals disseminated by the corporation pursuant to section 4230.6(d)(2) of this Part.

(e) Applications for incubator assistance and technical assistance shall be submitted in accordance with the terms of sections 4230.11 and 4230.12 of this Part, respectively.

(f) Enterprises that seek to obtain a government contractor loan, business development loan, or franchise loan shall request a loan application from the corporation and the potential applicant will then be sent a loan application, as described below in subdivisions (g) through (l) of this section.

(g) The loan application requires that each applicant provide the following information, as applicable to a particular project:

(1) information about the company, including its history, ownership (including resumes of the principals), 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; the current status of the project; and the impact of the project, if any, on the environment and any landmark or historic properties;

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

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

(6) 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;

(7) information concerning the proposed collateral, including appraisals or other documentation of the value of the proposed collateral;

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

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

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

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

(h) The loan application is divided into two sections. Section I requests basic information, from the categories of information set forth in subdivision (g) 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.

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

(j) 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 loan application.

(k) Each applicant will receive written acknowledgment by the corporation of its receipt, within 20 days thereof, of either section I 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.

(l) If staff determines a proposal is appropriate for funding under the criteria set forth in this section it will be presented to the corporation's directors for approval. The directors generally meet once a month. Loans and loan guarantees 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 PACB, which also generally meets once a month.

(m) 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.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 4230.15