N.Y. Comp. Codes R. & Regs. Tit. 21 § 4213.8 - 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) To apply
for assistance from the loan fund, a potential applicant should request an
application from: Director, Minority and Women Business Development and
Revolving Loan Fund, New York State Urban Development Corporation, 1515
Broadway, New York, NY 10036-8960, (212) 930-0209. The potential applicant will
then be sent a formal application. Program applications require that the
following information, as applicable to a particular project, be submitted:
(1) information about the company, including
its history, ownership, 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; and the current status of the project;
(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) information about
the applicant's previous business activities;
(5) information with respect to the site of
the project and the impact, if any, on the environment and any landmark or
historic properties;
(6) copies of
the schematic architectural drawings, scope of work descriptions, site
investigation reports and construction cost estimates;
(7) resumes of principal officers, a list of
owners, shareholders or partners;
(8) a complete set of financial statements
for at least the three preceding fiscal years;
(9) 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;
(10) a list of proposed
collateral, with appraisals or other documentation of the value of the proposed
collateral;
(11) letters of
commitment from other financing sources involved in the project;
(12) a copy of the executed or proposed
purchase option or contract for sale;
(13) a legal description and survey of the
property;
(14) a
construction-to-occupancy schedule; and
(15) such additional information as the
corporation may determine to be necessary for a complete funding analysis to be
made.
(c) The program
application is divided into two sections. Section I requests basic information,
from the categories of information set forth in subdivision (b) 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.
(d) Program
applicants have the option of completing both sections of the program
application and submitting them simultaneously to the corporation for a full
review. Alternatively, program applicants may complete Section I and obtain a
preliminary determination by the corporation regarding eligibility and
feasibility.
(e) 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 application. If staff determine that the project is either ineligible,
not developed fully enough to merit funding consideration at that time or that
it would be unfeasible to fund such project, the applicant will receive a
letter advising him or her of other available sources of funding, or
recommending technical assistance which, in many cases, is available through
the corporation and other State-funded organizations. Projects referred for
technical assistance may be eligible for consideration for program assistance
again once the technical assistance is obtained.
(f) Each applicant will receive written
acknowledgment by the corporation of its receipt, within 20 days thereof, of
either Section II 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.
(g) Upon receipt of a complete Section II, or
combined Section I and II, as the case may be, a project team will be assigned
to review the project. The applicant will be informed that the application is
under consideration and that a decision will be made, generally within 45 days,
as to whether, and if so, in what amount the application will be presented for
approval by the corporation.
(h) If
a proposal is determined to be appropriate for funding under the criteria set
forth in this Part, it will be presented to the corporation's directors for
approval. The directors generally meet once a month. Loans 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 the PACB, which also
generally meets once a month.
(i)
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. At the discretion of the
corporation, the commitment expiration date may be extended. Projects for which
a commitment expiration date may be extended shall include, but not be limited
to:
(1) projects which experience a delay in
obtaining financing or equipment required to be obtained prior to the making of
the proposed program loan;
(2)
projects which experience a delay in construction and/or renovation required to
be completed prior to the making of the proposed program loan; and
(3) in the case of proposed government
contractor loans and government-sponsored residential construction loans,
projects in which the eligible enterprise experiences a delay in the
commencement of its work pursuant to the government contract.
(j) Notwithstanding the foregoing,
all applications for program assistance will be reviewed, upon submission, to
identify manufacturing and industrial firms that may be eligible for industrial
technology extension service ("ITES") assistance. Upon determination that an
applicant may be eligible for participation in the ITES, the application will
be forwarded to the director of the ITES with a request that the firm's
eligibility be evaluated by ITES and, if determined to be eligible, that
informational materials be sent directly to the prospective ITES
participant.
Notes
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