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SECTION 9-F
Special assistance for small and medium-sized businesses which are adversely affected by the absence of eligible reservists ordered to ac...
Urban Development Corporation Act 174/68 (UDA) CHAPTER INTRO
§ 9-f. Special assistance for small and medium-sized businesses which
are adversely affected by the absence of eligible reservists ordered to
active duty with the armed forces. (1) In addition to loans for small
and medium-sized business assistance projects authorized by this act,
the corporation is hereby authorized to make loans to assist a small or
medium-sized business concern which is likely to suffer economic injury
as the result of the owner, manager or key employee of such small or
medium-sized business concern who is an eligible reservist being ordered
to active military duty during a period of military conflict. The
corporation shall determine the term and interest rate of such loans
except that no loan shall exceed one hundred fifty thousand dollars, no
loan shall have an interest rate greater than five percent and no loan
shall have a term that exceeds a number of years which in the opinion of
the corporation is necessary for the small or medium-sized business
concern to recover financially from the absence of such eligible
reservist. Any such loan shall be secured by a security agreement
chattel paper, loan agreement or such other instruments or documents
deemed necessary or convenient by the corporation to secure the loan. In
determining the economic need for a loan authorized by this section, the
corporation shall consider the decline in income or gross receipts of
the business during the period of active military duty of the eligible
reservist. Such loans shall be made in an expeditious manner to enable
the small or medium-sized business concern to recover forthwith from
such absence. Loans made pursuant to this section shall be used for
working capital by the small or medium-sized business concern. The
corporation shall render such other assistance and services as it deems
advisable and proper in connection with such loans and the purpose
therefor.

(2)(a) With respect to any loan granted to a small or medium-sized
business concern pursuant to this act, the corporation may temporarily
suspend the repayment obligation of any small or medium-sized business
concern if any person liable thereon is or if any owner, manager or key
employee is an eligible reservist called to active duty in the military
service subsequent to the disbursement of the proceeds of such loan and
such business concern has suffered or is likely to suffer economic
injury as a result of such order. The suspension, if approved, shall be
effective on the date the corporation is notified that the eligible
reservist has commenced active duty status or, at the election of the
corporation it shall be made effective at any time subsequent to the
date such eligible reservist entered active duty status, and shall
continue for ninety days after such person is discharged or released
from active duty.

(b) Within thirty days after the return to non-active duty status of
any person to whom this subdivision may apply, the corporation shall
arrange a meeting with the affected small or medium-sized business to
arrange repayment of the loan. The corporation is authorized to extend
the terms of any loan or to set a repayment schedule for such loans made
for a period of up to one year for each sixty days of active duty, but
not to exceed five years.

(c) If the corporation determines that such small or medium-sized
business concern meets the criteria of this subdivision, it may, in its
discretion, reduce or eliminate the assistance provided herein if it
determines such business has the financial ability to meet the terms and
conditions of the obligation without substantially disrupting business
operations. Any such determination shall be made only after affording
the applicant the opportunity to present information in person or
through others in support of the request for assistance.

(3) Nothing in this section shall preclude a small or medium-sized
business concern which is ineligible for assistance pursuant to the
provisions of this section from qualifying for any other assistance
pursuant to article 13 of the military law or the Federal Soldiers' and
Sailors' Civil Relief Act of 1940, as amended.

(4) The corporation is directed to liberally construe the provisions
of this section to benefit eligible small and medium-sized business
concerns in recovering from any demonstrated economic loss caused by the
active military service of the eligible reservist.