Sec. 23.7. Criteria for working capital loans to improve productivity and competitiveness

(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; and

(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 has an adjustment plan or a sound business development plan;

(3) the project addresses a primary cause of the firm's competitive problem, is essential to its overall plan to improve long-term competitiveness, and is likely to improve the productivity, market position or competitive strength of the firm;

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

(5) the firm is an important employer in the community, and the project will serve the interests of employees and of the community;

(6) the project is intended to maintain employment of all or a substantial part of the existing work force to the maximum extent;

(7) the firm is prepared to give contractual assurances that the products, processes and techniques to be financed will be developed and produced in the State and that benefits of the project shall remain in the State;

(8) in the case of an expansion or diversification of a product line, the product has a good probability of becoming commercially successful;

(9) the ratio of number of jobs to be created or retained to the amount of assistance requested from the UDC is warranted. In general, financing will not be approved for projects that anticipate a return of less than one job for each $15,000 of State assistance;

(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 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 or by the Job Service Division of the Department of Labor; and

(11) the firm has the ability to repay the loan.