N.Y. Comp. Codes R. & Regs. tit. 21 § 4240.9

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

Section 4240.9 - Loan guarantees

The corporation may provide government contractor loan guarantees, business development loan guarantees and franchise loan guarantees (individually and collectively, the "loan guaranty") to eligible banking organizations proposing to make loans for projects as described in sections 4240.6 through 4240.8 of this Part to enterprises that qualify for such loans under said sections (except that the $50,000 minimum set forth in section 4240.8[b] of this Part shall not apply to any loan secured by a business development loan guaranty), subject to sections 4240.4 and 4240.10 of this Part and the following:

(a) the loan guaranty shall be fully funded by the corporation;

(b) the loans to be guaranteed must be secured by an interest in collateral acceptable to the corporation;

(c) the amount of the loan guaranty shall not exceed 80 percent of eligible project costs as determined by the corporation in consultation with the eligible banking organization proposing to make the loan that shall be guaranteed; and

(d) loan guarantees shall not be available to enterprises receiving program assistance in the form of a direct loan from the corporation.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 4240.9