21 CRR-NY 4209.7NY-CRR
21 CRR-NY 4209.7
21 CRR-NY 4209.7
4209.7 Approval of eligible projects.
(a) Regional corporations’ loan committees shall review each application by eligible businesses for assistance, determine the feasibility of the transaction proposed in the application and shall recommend to the board of directors or other governing body of the regional corporation such action as the committee deems appropriate.
(b) The decision to approve or reject an application for financial assistance pursuant to the provisions of this Part shall be made by a majority of the directors of the regional corporation.
(1) No member of the board or other governing body of a regional corporation shall participate in a decision on a project application when such member is a party to or has a financial interest in such project. Any member who cannot participate in a decision on a project application for such reason shall not be counted as a member of the board or other governing body for purposes of determining the number of members required for a majority vote on such application.
(2) No employee or officer of any regional corporation shall be a party to or have any financial interest in any project that receives financial assistance pursuant to this Part.
(c) Upon approval of an application for assistance to an eligible project, the regional corporation shall request approval from the corporation to proceed with providing the assistance to the eligible project and, as part of such request, shall certify to the corporation:
(1) for working capital loans, the amount of the loan, the loan term and the interest rate;
(2) for loan guarantees, the term, amount and interest rate of the loan to be guaranteed, the amount and term of the loan guarantee, and the amount of the reserve to be set aside therefor;
(3) for working capital loans and loan guarantees:
(i) the name of the eligible business;
(ii) a description of the eligible project;
(iii) the number of net new permanent jobs likely to be created and/or the number of jobs likely to be retained;
(iv) that the project complies with the requirements of the trust fund legislation and this Part; and
(v) such other information as the corporation may require.
(d) Upon approval by the corporation of the proposed assistance to an eligible project, the regional corporation may:
(1) draw down funds from the loan fund account in the amount of any working capital loan so approved; or
(2) guarantee a loan by a banking organization for the eligible project, provided that the regional corporation maintains adequate reserves in the loan fund account as required by section 4209.4(b) of this Part.
21 CRR-NY 4209.7
Current through September 15, 2021
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IMPORTANT NOTE REGARDING CONTENT CURRENCY: JULY 31, 2023, is the date of the most recently produced official NYCRR supplement covering this rule section. For later updates to this section, if any, please: consult editions of the NYS Register published after this date; or contact the NYS Department of State Division of Admisnistrative Rules at [email protected]. See Help for additional information on the currency of this unofficial version of the NYS Rules.