(a) Pursuant to section 9-a of the UDC Act, the corporation may provide, within available appropriations, financial assistance through project loans to small- and medium-sized business assistance projects as defined in section 3(6)(f) of the UDC Act. The proceeds of such project loans may be used to finance costs associated with the following activities:

1. (1) industrial development assistance to industrial firms for:

   1. (i) renovation or rehabilitation of industrial plants that are economically inefficient due to the need for changes in design, construction, technology or production processes;
   2. (ii) renovation or rehabilitation of existing facilities for reuse as an industrial facility;
   3. (iii) acquisition of real property and related improvements;
   4. (iv) new construction;
   5. (v) working capital; or
   6. (vi) acquisition of modern production technology, including machinery, equipment and computerized design and control systems required to improve production processes, expand existing or enter new markets, or to otherwise remain competitive;

2. (2) child care facility assistance to industrial firms for the establishment or expansion of certain child day-care facilities, including:

   1. (i) acquisition of real property and related improvements;
   2. (ii) new construction or renovation of existing improvements; and/or

   3. (iii) acquisition of permanently installed equipment.

      To be eligible for this assistance, a child-care facility (“Facility”) must:

   4. (iv) be located on the work site of the industrial firm sponsoring the facility or at a proximate site where a consortia of industrial firms are sponsoring the Facility;
   5. (v) be used primarily by the children or employees of the company or companies sponsoring the Facility;
   6. (vi) not be operated for profit;
   7. (vii) demonstrate an ability to obtain, from the appropriate governmental agencies, all necessary approvals and licenses required to operate the Facility; and
   8. (viii) demonstrate an ability to prevent access by children to any equipment in facilities which could be injurious to their health or safety.
3. (3) Ancillary costs related to projects for which assistance is provided under paragraphs (1) and (2) of this subdivision, such as legal expenses, appraisal costs, brokerage commissions, interest costs, survey expenses, architectural and engineering fees, site preparation expenses and relocation expenses, may be financed with the proceeds of project loans.

(b) The following costs are ineligible for funding under this program:

1. (1) expenses incurred prior to application for program assistance;
2. (2) financing for retail, office, commercial or housing development projects; and
3. (3) payment of tax or employee benefit arrearages.

(c) In order to provide assistance hereunder, the corporation must have made certain findings specified in section 10 of the UDC Act. Assistance will be predicated upon the ability of the corporation to make such findings, which, in the case of small- and medium-sized business assistance projects, consist of the following:

1. (1) that the area in which the project will 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;
2. (2) that the project demonstrates market, management and financial feasibility and has a clear likelihood of success;
3. (3) that the industrial firm provides at least a 10-percent equity contribution and such contribution is not derived from other governmental sources;
4. (4) that the requested financial assistance is not available from other public or private financing sources on terms compatible with the successful completion of the project;

5. (5) that the project will not result in the relocation of any industrial firm from one municipality within the State to another municipality, except under one of the following conditions:

   1. (i) when an industrial firm is relocating within a municipality with a population of at last one million, where the governing body of such municipality approves such relocation; or
   2. (ii) the corporation notifies each municipality from which such industrial firm will be relocated, and each municipality agrees to such relocation; and
6. (6) that the project is not for the purpose of refinancing any portion of the total project cost or other existing loans or debts of the project sponsor or owner. A project loan for child-care facility assistance shall be made only upon the additional determination by the corporation that such child-care facility is necessary to improve or maintain the productivity of the company or companies sponsoring the project.