N.Y. UDA Law § 16-B — New York Code / Act UDA / Section 16-B
Job retention and defense industry working capital loan program
Status: in_force

§ 16-b. Job retention and defense industry working capital loan\nprogram.  (1) Program established. The corporation shall establish the\njob retention and defense industry working capital loan program for the\npurpose of establishing an economic development working capital\nrevolving loan fund to be administered by the corporation. Such fund\nshall be used to provide financial assistance in the form of working\ncapital loans or loan guarantees to companies at imminent risk of\nreducing employment including, but not limited to, companies in the\ndefense sector or in the form of grants for the benefit of communities\nwhose employment is or could be impacted by a planned or potential major\nmilitary base closing and/or downsizing or for the benefit of\ncommunities whose employment is impacted by the downsizing of a\ncommunity's major employer or employers including, but not limited to,\ncommunities impacted by cutbacks in defense contracts.\n  (2) Application criteria. In addition to such other criteria as the\ncorporation may adopt in rules and regulations for the consideration of\napplications for loans or loan guarantees pursuant to subdivision one of\nthis section, the corporation shall:\n  (a) determine that the company is unable to obtain sufficient funding\non reasonable terms from other public or private sources to permit the\ncompany's planned investment to proceed without the required assistance;\n  (b) give priority to those applications for assistance from companies\nlocated in highly distressed areas as defined pursuant to subdivision\n(a) of section nine hundred fifty-eight of article eighteen-b of the\ngeneral municipal law;\n  (c) consider whether the loan or loan guarantee will result in a\nreasonable likelihood of success in meeting the purposes for which it\nwas sought by the applicant company;\n  (d) assess the demonstrated need for such assistance, established by a\nshowing of a short-term lack of liquidity of an existing solvent\nbusiness;\n  (e) request from a company a commitment to a business plan to turn\naround the financial condition of the business;\n  (f) expect the existence of a completed company evaluation, or\ncommitment to undertake such an evaluation, by the industrial\neffectiveness program, or its equivalent thereof; and\n  (g) require companies receiving assistance pursuant to this section to\nfirst consider for any new position opened as a result of assistance,\npersons eligible to participate in federal job training partnership act\nprograms (P.L. 97-3400) (29 U.S.C.A. SS 801 seq.) who shall be referred\nto the company by administrative entities of service delivery areas\ncreated pursuant to such act by the job service division of the\ndepartment of labor.\n  (3) Funds. The fund shall consist of such amounts as may be\nappropriated, any repayment of the principal amount of any loan made\nfrom the fund, and any interest earned by the corporation from the\ninvestment of moneys of the fund.\n  (4) Nonapplication of certain provisions. The provisions of section\nten and subdivision two of section sixteen of this act shall not apply\nto assistance provided under this program.\n  (5) Reports. The chairman of the corporation shall submit to the\ndirector of the budget, the speaker of the assembly and the temporary\npresident of the senate an evaluation of the effectiveness of the\nprogram prepared by an entity independent of the corporation. The\ncorporation shall select the program evaluator through a request for\nproposal process. Such evaluation shall determine whether the assistance\nprovided has enhanced the economic conditions of assisted companies or\ncommunities, and shall make recommendations for improvements which would\nmake the program more effective. Such evaluation shall be submitted by\nSeptember first, nineteen hundred ninety-five and September first every\ntwo years thereafter.\n