1. The Laws of New York
  2. Unconsolidated Laws
  3. Urban Development Corporation Act 174/68

Section 16-B Job retention and defense industry working capital loan program

Urban Development Corporation Act 174/68 (UDA)

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.