N.Y. Comp. Codes R. & Regs. tit. 21 § 4242.5

Current through Register Vol. 46, No. 51, December 18, 2024

Section 4242.5 - Evaluation criteria

(a) The corporation shall evaluate applications for program assistance in consultation with local government officials and regional economic development offices for conformance to the requirements set forth in this Part and the following criteria, among others, as may be appropriate to the type of assistance being requested:

(1) the financial condition of the company undertaking the project, including its profitability or potential to generate profits; liquidity; ability to service debt and its leverage ratio;

(2) management experience, ability and knowledge of industry and the company's general ability to carry out the project;

(3) satisfactory credit references;

(4) availability of adequate collateral for program assistance, as may be appropriate;

(5) availability and adequacy of personal and corporate guarantees;

(6) absence of tax judgments;

(7) size of the applicant's equity contribution to the project. In general, an equity contribution of at least 10 percent of the total project cost will be required, except as may otherwise be provided herein;

(8) the level of economic distress demonstrated in the community in which the project is located and the project's overall impact on that community;

(9) the number and nature of the jobs created and the total payroll impact of the project;

(10) the availability of other sources of funding including offers of assistance from locations outside of New York State, and the amount of private financing being leveraged by program funds;

(11) the economic development benefits that are likely to result from the project and the amount of State assistance being requested.

(b)

(1) The corporation may make an offer or award of program assistance only in those instances in which:

(i) the corporation's analysis of the factors enumerated above indicate that such an award would be appropriate to accomplish the purposes of the program; and

(ii) it can reasonably be concluded that the expansion or attraction project would not occur without program assistance.

(2) In any such instance, the corporation shall use its best efforts to limit the type and amount of program assistance offered or awarded to no more than the amount reasonably necessary to accomplish the project in New York State.

(3) In satisfying the requirements of subparagraph (1)(ii) and paragraph (2) of this subdivision, the corporation shall use its best efforts to obtain and review the terms of any of economic development assistance offer(s) that may have been provided as an incentive for the implementation of the proposed project in a location outside of New York State.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 4242.5