21 CRR-NY 4213.5NY-CRR
21 CRR-NY 4213.5
21 CRR-NY 4213.5
4213.5 Forms of assistance.
The following forms of financial assistance shall be available under the loan fund:
(a) Business development loans may be made to eligible enterprises for the acquisition or improvement of real property, machinery, equipment or for working capital subject to the provisions of section 4213.4 of this Part and the following:
(1) for each project, working capital shall be limited to a maximum of 33 percent of the total assistance from the corporation; and
(2) the amount of any such loan shall not be less than $20,000 and generally shall not exceed $500,000.
(b) Government contractor loans may be made to eligible enterprises for funds necessary to perform contracts with a governmental entity or agency subject to the provisions of section 4213.4 of this Part and the following:
(1) in the event the corporation deems it necessary, such loans may be secured in part by assignment to the corporation of the amounts payable to the eligible enterprise under the government contracts to be financed;
(2) the contract(s) must have been awarded by the governmental entity or agency prior to disbursement of loan fund funds;
(3) the contract(s) must be of sufficient magnitude to enable the firm to repay the loan;
(4) the amount of the loan generally shall not exceed 50 percent of the annual value of the contract(s) based on the value of contract receivables acceptable to the corporation, which receivables shall include, but not be limited to:
(i) receivables based on invoices verified as due and payable by the government agency, in the case of a prime contractor applicant, or by the prime contractor, in the case of a subcontractor applicant;
(ii) receivables related to the specific contract(s) to be financed by the the corporation; and
(iii) receivables that are, generally, not more than 90-120 days old.
(5) no more than one government contractor loan shall be available to any one applicant at any given time; and
(6) the amount of the loan shall not be less than $20,000 and generally shall not exceed $500,000.
(c) Franchise loans may be made to eligible enterprises seeking to acquire franchises of nationally recognized corporations located within a distressed area or within an area in which the percentage of minorities within the population is less than the statewide average, subject to the provisions of section 4213.4 of this Part and the following:
(1) disbursements by the corporation of such loans shall be conditioned upon the eligible enterprise obtaining such franchise(s);
(2) the amount of any such loan shall not be less than $20,000 and generally shall not exceed $200,000 or an amount equal to twice the amount of cash equity in the project, whichever is less; and
(3) the corporation shall receive, when and if appropriate, a first lien on any tangible assets acquired and part of the project or available from the franchisor, in addition to personal guarantee(s) of the principal(s) of the eligible enterprise.
(d) Entrepreneurial assistance loans may be made to provide venture capital for start-up, service, manufacturing or high technology eligible enterprises subject to the provisions of section 4213.2 of this Part and provided that the amount of any such loan shall not be less than $20,000 and generally shall not exceed $100,000 or an amount equal to three times the total amount of cash equity in the project, whichever is less.
(e) Linked deposit loans may be made to eligible enterprises by private financial institutions in New York State that have received deposits of funds from the corporation specifically to encourage such institutions to make such loans subject to the provisions of section 4213.4 of this Part, and the corporation may deposit funds in each selected institution for the purposes of enabling the institution to make one or more loans consistent with the purposes of this program.
(f) Loan guarantees may be issued to eligible banking organizations proposing to lend to eligible enterprises for projects as described in subdivisions (a) through (d) and (g) of this section, subject to the provisions of section 4213.4 of this Part and the following:
(1) the loan guarantee shall be fully funded by the corporation;
(2) the loans to be guaranteed must be secured by an interest in collateral acceptable to the corporation;
(3) the amount of the loan guarantee shall not exceed 80 percent of the eligible project costs as determined by the corporation, or the amount of the loan to which the eligible enterprise would qualify under the provisions of subdivisions (a) through (d) and (g) of this section, whichever is less; and
(4) loan guarantees shall not be available to guarantee loans to enterprises receiving other financial assistance under the program.
(g) Government-sponsored residential construction loans may be made to eligible enterprises for funds necessary to perform contracts for or in connection with residential construction, renovation or development construction subject to the provisions of section 4213.4 of this Part and the following:
(1) the corporation enters into a cooperative arrangement with a municipality, State agency or public authority to administer the loan;
(2) the eligible enterprise must be a party to a contract for or in connection with residential construction, renovation or development construction, which contract is executed in connection with government-sponsored programs and projects;
(3) the contract(s) must be of sufficient magnitude to enable the firm to repay the loan;
(4) the amount of the loan generally shall not exceed 50 percent of the annual value of the contract(s) based on the value of contract receivables acceptable to the corporation, which receivables shall include, but not be limited to:
(i) receivables based on invoices verified as due and payable by the government agency, in the case of a prime contractor applicant, or by the prime contractor, in the case of a subcontractor applicant;
(ii) receivables related to the specific contract(s) to be financed by the the corporation; and
(iii) receivables that are, generally, not more than 90-120 days old;
(5) no more than one government-sponsored residential construction loan shall be available to any one applicant at any given time; and
(6) the amount of the loan shall not be less than $20,000 and generally shall not exceed $500,000.
21 CRR-NY 4213.5
Current through September 15, 2021
| End of Document |
IMPORTANT NOTE REGARDING CONTENT CURRENCY: The "Current through" date indicated immediately above 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 Administrative Rules at [email protected]. See Help for additional information on the currency of this unofficial version of NYS Rules.