Sec. 4211.6. Child care assistance projects

(a) Assistance available.

The corporation may make loans and grants, as set forth below and within available appropriations, for child care assistance projects. Child care assistance projects are projects for the establishment, expansion and development of licensed not-for-profit child day care centers which serve the needs of small- and medium-sized businesses, health-related businesses, and degree-granting institutions of higher education and which meet the other requirements of this section. A small- or medium-sized business is an industrial, service or other business, which is not a retail business or overnight lodging facility, which employs, on a full-time basis, 500 or fewer employees within the State or at the site to be serviced by the child day care center to receive program assistance. The amount of financial assistance provided by the corporation hereunder in the form of a loan or grant shall not exceed the respective maximums set forth below for each such type of assistance and the total amount of child care assistance project assistance awarded to any project shall not exceed the lesser of $250,000 or 85 percent of total project cost.

(1) Loans.

(i) The corporation may make child care assistance project loans to:

(a) a small- and medium-sized business, as defined in this subdivision, health-related business or degree-granting institution of higher education (including the State University of New York and its affiliates) that has provided, or committed to provide, financial assistance for the establishment, expansion and/or development of a licensed not-for-profit child day care center (a sponsoring company), or a consortium of such entities, which will contract, prior to receipt of the program assistance, with a not-for-profit child care provider to provide services at the facility to be financed. Generally, an equity contribution to the project by or on behalf of the sponsoring companies of at least 10 percent of total project cost shall be required, part of which may be in the form of an in-kind contribution at the corporation's discretion taking into consideration the nature of the applicant, the project's requirements and such other factors as the corporation deems appropriate;

(b) a not-for-profit child care provider;

(c) a not-for-profit corporation which will contract, prior to receipt of the program assistance, with a not-for-profit child care provider to provide services at the facility to be financed.

(ii) Child care assistance project loans may be made by the corporation for a total amount not to exceed the lesser of 50 percent of total project cost or $250,000 and may be used to finance:

(a) the acquisition, design, construction, improvement or renovation of a licensed not-for-profit child day care facility;

(b) the purchase of permanently installed machinery and equipment in connection with the establishment or expansion of a licensed not-for-profit child day care facility;

(c) working capital.

(iii) Child care assistance project loans may not be used to finance:

(a) tax or employee benefit arrearages; or

(b) any expense incurred prior to initiation of the application process for REDPP assistance.

(iv) Terms. Within the limitations established hereunder, terms and security arrangements will be flexible, depending on the type of loan and particular characteristics of the project under consideration. No loan shall be disbursed without firm commitments from all other funding sources.

(a) The interest rate on, and security arrangements for, a child care assistance project loan will be set at the time the directors approve an application and will be fixed based upon what is necessary to make the project feasible, market conditions, the applicant's ability to repay and other project requirements.

(b) Loans made to finance the acquisition of real property or the acquisition, renovation or construction of facilities generally may be made for a maximum term of 20 years. In a co-equal and coordinate mortgage situation, a mortgage granted to the corporation will match the term of the other mortgagee(s).

(c) Loans made to finance the acquisition of machinery and equipment generally may be made for a maximum term of seven years or the useful life of the collateral, whichever is less.

(d) Working capital loans generally will be made for a term of from one to four years.

(e) Construction loans generally will be made for a maximum term of two years.

(f) Loans in the form of permanent financing secured by fixed assets will be preferred. Construction loans approved by the corporation hereunder will not be funded before secure commitments for permanent financing have been obtained.

(2) Grants.

(i) The corporation may make child care assistance project grants to:

(a) a not-for-profit child care provider;

(b) a not-for-profit corporation which will contract, prior to receipt of the child care assistance project grant, with a not-for-profit child care provider to provide child care services at the facility.

(ii) Child care assistance project grants may be made by the corporation for a total amount not to exceed the lesser of 40 percent of total project cost or $100,000 and may be used to finance general project development costs including, without limitation:

(a) studies to assess the feasibility of, or preliminary planning for, the development of a licensed not-for-profit child day care facility;

(b) acquisition, design, construction, improvement or renovation in connection with the establishment of a licensed not-for-profit child day care facility; and

(c) the purchase of permanently installed machinery and equipment necessary to establish a licensed not-for-profit child day care facility.

(iii) Child care assistance project grants may not be used to finance:

(a) working capital;

(b) tax or employee benefit arrearages; or

(c) any expense incurred prior to initiation of the application process for REDPP assistance.

(b) Eligibility.

To be eligible for a child care assistance project loan or grant, the project must:

(1) be consistent with the regional strategic plan, as evidenced by the certification of the regional council or the corporation, as the case may be, in accordance with section 4211.11(b) of this Part;

(2) maintain or improve the productivity of one or more sponsoring companies, as defined in clause (a)(1)(i)(a) of this section, taking into consideration the anticipated effect of the project on employee absenteeism, lateness and productivity and on the sponsoring company's ability to retain or recruit employees;

(3) be reasonably likely to be completed within the time and cost estimates presented in the proposal;

(4) be unable to obtain sufficient funding on reasonable terms from other public or private sources to permit the project to proceed without the requested assistance;

(5) be located in an area where adequate child care facilities are not available for employees of the small- and medium-sized business, as defined in subdivision (a) of this section, health-related business or degree-granting institution of higher education served;

(6) the proposed project demonstrates an ability to obtain, from the appropriate governmental entities, all approvals and licenses required to operate the facility; and

(7) demonstrate an ability to prevent access by children to any equipment which could be injurious to their health or safety.

(c) Ineligible projects.

(1) Child care assistance project assistance may not be provided to:

(i) retail businesses;

(ii) overnight lodging facilities;

(iii) businesses providing legal services; or

(iv) newspaper, broadcasting or other news media company; provided, however, that projects that otherwise meet the requirements of this section shall not be considered ineligible because the facility to be financed may be available to the children of employees of the types of businesses listed above.

(2) Child care assistance project assistance also may not be provided to projects involving:

(i) debt refinancing;

(ii) the relocation of a business from one municipality to another municipality unless all municipalities from which the business will be relocated are notified in writing of the corporation's approval of funding for the project and the chief executive officers of the municipalities do not object in writing to the corporation within 20 days of receipt of such notification, or unless they waive in writing their right to such notification; and

(iii) the provision of financial assistance, directly or indirectly, by the corporation to:

(a) the State, or any agency, department, authority, public benefit corporation or political subdivision thereof, except as otherwise expressly provided for in this section (the State); or

(b) a full-time employee of the State or of any State agency, department, authority, public benefit corporation, or political subdivision (a State employee); or

(c) any entity that is controlled or a majority of which is owned by a State employee.