Sec. 23.11. Criteria for working capital loans for corporate restructuring or corporate turnaround plans

(a) The UDC is required to make industrial effectiveness project findings under the UDC Act. Assistance will be predicated upon the ability of the UDC to make the following findings:

(1) that a feasibility study or productivity assessment exists demonstrating the potential for future profitability of the firm requesting financial assistance, and such study or assessment has been reviewed and approved by the Commissioner of Economic Development;

(2) that for loans to implement a corporate restructuring or turnaround plan, the management of the industrial firm requesting assistance is capable and the firm has a sound business development plan that includes measures to ensure labor and management cooperation and to effect changes required to continue as a successful business;

(3) that the requested financial assistance is not available from other public or private financing sources;

(4) that the area in which the project is to be located is a substandard or insanitary area, or is in danger of becoming a substandard or insanitary area, wherein there exists a condition of substantial and persistent unemployment or underemployment;

(5) that there is a feasible method for the relocation of families and individuals displaced from the project area into decent, safe and sanitary dwellings, which are or will be provided in the project area or in other areas not generally less desirable in regard to public utilities and public and commercial facilities, at rents or prices within the financial needs of such families or individuals and reasonably accessible to their places of employment.

(b) In addition to the foregoing, the UDC shall evaluate applications submitted in accordance with the following criteria:

(1) the firm has been qualified for assistance pursuant to Part 20 of this Title;

(2) the firm faces the loss of a substantial number of jobs as the result of a closing, partial closing, or relocation out-of-state of the firm;

(3) the firm is an important employer in the community, and efforts to revitalize the firm will serve the long-term interests of both employees and the community;

(4) the social costs to employees and the community resulting from a large employment loss, plant closing, or business failure, and fiscal benefits to the State and the community from maintaining operations of the firm, outweigh the financial risks to the State;

(5) the project loan will significantly contribute to the success of the corporate restructuring or turnaround plan, and implementation of such plan is unlikely to occur without State assistance;

(6) the other financing required for the project has been committed;

(7) the firm has taken, or is committed to take, such steps as the UDC deems necessary to ensure that it has a reasonable chance to continue as a successful business, including but not limited to changes in its operations, management or financing, and is prepared to include such as a condition of financing in the loan agreement;

(8) the corporate restructuring or turnaround plan reflects consideration and fair treatment of employees, and the firm's adjustment plan seeks to preserve the jobs of employees to the maximum extent possible;

(9) there exists a reasonable prospect for repayment of the working capital loan; and

(10) the firm has agreed to first consider, for new employment opportunities opened as a result of the project loan, persons eligible to participate in the Federal Job Training Partnership Act (P.L. 97-300, as amended) programs, who shall be referred to the firm by administrative entities of service delivery areas created pursuant to such act on or by the Job Service Division of the Department of Labor.