Sec. 4242.4. Assistance available

Within available appropriations, ESD may provide one or more of the following types of assistance to eligible projects; provided, however that, except as may be further limited below, the maximum amount of assistance of any one of the following types for any one project generally shall not exceed $10,000 per job created as a result of the project.

(a) Job creation grants.

(1) Purpose. ESD may make grants to eligible businesses under taking eligible projects, which grant may be used by the recipient to defray its State or local tax liability for any taxable period beginning on or after the date such grant is approved by ESD.

(2) Amount. The grant shall equal a portion, not more than 50 percent, of the State income tax withheld from the salaries paid to employees hired as a result of the eligible project, as shall be determined by ESD after taking into consideration the anticipated economic development benefits of the project, including the total number and nature of jobs created, and the demand for program funds. The maximum amount of any job creation grant is $1.5 million.

(3) Disbursement. Job creation grant proceeds generally will be disbursed by ESD proportionately with the establishment, by presentation of documentation reasonably satisfactory to ESD, of the following:

(i) the number of new, permanent, full-time, private-sector jobs that have been created out of the total projected to be created;

(ii) the amount of State income tax that has been withheld with respect to these jobs out of the total projected to be withheld; and

(iii) the amount and nature of the State or local tax liability that is due from and payable by the business receiving the job creation grant, to which the job creation grant will be applied, out of the total projected to be due and payable.

(b) Worker training grants.

(1) Purpose. ESD may make grants to eligible businesses undertaking eligible projects as full or partial reimbursement of the cost incurred by such businesses in conducting programs of worker training in connection with the eligible expansion or attraction project, including, without limitation, programs of recruitment, skills training and/ or upgrading, productivity enhancement and total product/service quality improvement.

(2) Amount. The amount of any worker training grants shall be as determined by ESD on a case-by-case basis within the general limitation set forth in the introductory paragraph of this section.

(3) Disbursement. Worker training grants shall be disbursed by ESD only upon completion of the worker training program, or the portion thereof for which reimbursement is being sought, and the submission of appropriate documentation evidencing the costs to be reimbursed.

(c) Capital loans and grants.

(1) Purpose. ESD may make loans and grants to eligible businesses undertaking eligible projects to finance, in connection with such projects, the acquisition of land, buildings, and machinery and equipment, or an interest therein; new construction, renovation or leasehold improvements; infrastructure improvements, including, without limitation, drainage systems, sewer systems, access roads, parking areas, sidewalks, docks, wharves, water supply systems and demolition and site clearance, preparation and improvement; and costs related to the above including, without limitation, legal expenses, appraisal costs, brokerage commissions, interest costs, survey expenses, design, architectural and engineering fees and expenses, site preparation expenses and relocation expenses; provided, however, that program funds shall not be awarded for consultant costs relating to the preparation of an application for program assistance.

(2) Amount. The amount of any capital loan or grant shall be as determined by ESD on a case-by-case basis within the general limitation set forth in the introductory paragraph of this section.

(3) Disbursement. Capital loans and grants shall be disbursed by ESD only upon completion of the capital improvement that is the subject of the assistance and the submission of appropriate documentation.

(d) Interest subsidy grants.

(1) Purpose. ESD may make grants for the benefit of eligible businesses undertaking eligible projects to offset debt service costs associated with loans made to such businesses by a private lending institution, either directly or through an intermediary such as an industrial development agency of the State, to finance, in connection with such projects, the acquisition of land, building, or machinery and equipment, or an interest therein; new construction, renovation or leasehold improvements; and infrastructure improvements, as set forth in paragraph (c)(1) of this section.

(2) Amount. The amount of any interest subsidy grant shall be as determined by ESD on a case-by-case basis within the general limitation set forth in the introductory paragraph of this section; provided, however, that interest subsidy grants approved by the corporation generally shall not reduce the debt service costs associated with the eligible loan to less than three percent.

(3) Disbursement. Interest subsidy grants shall be disbursed by ESD directly to the private lending institution simultaneously with or subsequent to the closing of the eligible loan and the submission of appropriate documentation evidencing the same.

(e) Working capital loans and loan guarantees.

(1) Purpose. ESD may make working capital loans and loan guarantees to or for the benefit of eligible businesses undertaking eligible projects to finance capital-related expenses such as, without limitation, accounts receivable and inventory, provided that such expenses are necessary to upgrade and reconfigure the business' competitive position. Working capital assistance shall be provided primarily in the form of loan guarantees; working capital loans shall be provided only under limited circumstances, as determined in ESD's sole discretion.

(2) Amount. The amount of any working capital loan or working capital loan guarantee shall be as determined by ESD on a case-by-case basis within the general limitation set forth in the introductory paragraph of this section; provided, however, that working capital loan guarantees approved by the corporation generally shall not be for more than 60 percent of the loan being guaranteed.