N.Y. Comp. Codes R. & Regs. Tit. 21 § 4235.6 - Eligible and ineligible uses of funds

(a) Assistance from the loan fund for loan guarantees and working capital loans may be sought and used for working capital purposes.

(b) Assistance from the loan fund for loan guarantees and working capital loans shall not be used for any of the following purposes:

(1) disbursements to eligible business owners, including any repayment or servicing of loans or transfers from the owning entity of eligible businesses, stock distributions or reductions of owner's equity in any manner or payment of excessive salaries, as determined by the corporation in its sole discretion;

(2) payment of any tax arrearages;

(3) refinancing which shall reduce the commitment of outside financial institutions to the eligible business;

(4) the purchase of real estate or machinery and equipment.

(c) Assistance from the loan fund for the grants may be used for any of the purposes set forth in section 4235.3(d) of this Part. However, the grants may not be used to pay for tax arrearages or penalties or employee benefit arrearages.

Notes

N.Y. Comp. Codes R. & Regs. Tit. 21 § 4235.6