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This entry was published on 2014-09-22
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Job retention and defense industry working capital loan program
Urban Development Corporation Act 174/68 (UDA) CHAPTER INTRO
§ 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

(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.