N.Y. Urban Development Corporation Act 174/68 § 16-b: Job retention and defense industry working capital loan program

§ 16-b. Job retention and defense industry working capital loan

program. (1) Program established. The corporation shall establish the

job retention and defense industry working capital loan program for the

purpose of establishing an economic development working capital

revolving loan fund to be administered by the corporation. Such fund

shall be used to provide financial assistance in the form of working

capital loans or loan guarantees to companies at imminent risk of

reducing employment including, but not limited to, companies in the

defense sector or in the form of grants for the benefit of communities

whose employment is or could be impacted by a planned or potential major

military base closing and/or downsizing or for the benefit of

communities whose employment is impacted by the downsizing of a

community's major employer or employers including, but not limited to,

communities impacted by cutbacks in defense contracts.

(2) Application criteria. In addition to such other criteria as the

corporation may adopt in rules and regulations for the consideration of

applications for loans or loan guarantees pursuant to subdivision one of

this section, the corporation shall:

(a) determine that the company is unable to obtain sufficient funding

on reasonable terms from other public or private sources to permit the

company's planned investment to proceed without the required assistance;

(b) give priority to those applications for assistance from companies

located in highly distressed areas as defined pursuant to subdivision

(a) of section nine hundred fifty-eight of article eighteen-b of the

general municipal law;

(c) consider whether the loan or loan guarantee will result in a

reasonable likelihood of success in meeting the purposes for which it

was sought by the applicant company;

(d) assess the demonstrated need for such assistance, established by a

showing of a short-term lack of liquidity of an existing solvent

business;

(e) request from a company a commitment to a business plan to turn

around the financial condition of the business;

(f) expect the existence of a completed company evaluation, or

commitment to undertake such an evaluation, by the industrial

effectiveness program, or its equivalent thereof; and

(g) require companies receiving assistance pursuant to this section to

first consider for any new position opened as a result of assistance,

persons eligible to participate in federal job training partnership act

programs (P.L. 97-3400) (29 U.S.C.A. SS 801 seq.) who shall be referred

to the company by administrative entities of service delivery areas

created pursuant to such act by the job service division of the

department of labor.

(3) Funds. The fund shall consist of such amounts as may be

appropriated, any repayment of the principal amount of any loan made

from the fund, and any interest earned by the corporation from the

investment of moneys of the fund.

(4) Nonapplication of certain provisions. The provisions of section

ten and subdivision two of section sixteen of this act shall not apply

to assistance provided under this program.

(5) Reports. The chairman of the corporation shall submit to the

director of the budget, the speaker of the assembly and the temporary

president of the senate an evaluation of the effectiveness of the

program prepared by an entity independent of the corporation. The

corporation shall select the program evaluator through a request for

proposal process. Such evaluation shall determine whether the assistance

provided has enhanced the economic conditions of assisted companies or

communities, and shall make recommendations for improvements which would

make the program more effective. Such evaluation shall be submitted by

September first, nineteen hundred ninety-five and September first every

two years thereafter.