1. (1) Assistance available. The corporation may make grants, as set forth below and within available appropriations, of up to $500,000 to capitalize regional revolving loan trust fund accounts to be established pursuant to section 16-a of the New York State Urban Development Corporation Act.
2. (2) Eligible grant recipients. Regional corporations meeting the criteria set forth in section 16-a of the New York State Urban Development Corporation Act shall be eligible for a capitalization grant, if the area to be served by such organization is not already being served by a regional revolving loan trust fund account established pursuant to section 16-a of the New York State Urban Development Corporation Act.

3. (3) Terms. A regional corporation designated by the corporation to administer a regional revolving loan trust fund account shall use account funds for the purposes set forth in section 16-a of the New York State Urban Development Corporation Act. Any regional revolving loan trust fund account established hereunder shall be established and administered in accordance with, and shall be fully subject to and governed by, section 16-a of the New York State Urban Development Corporation Act and its implementing regulations, Part 4209 of this Title.

   (b) Recapitalization grants.

4. (1) Assistance available. The corporation may make grants to recapitalize revolving loan trust fund accounts established by the corporation pursuant to sections 16-a and 16-c of the New York State Urban Development Corporation Act.
5. (2) Eligibility. Only regional and administering corporations responsible for the administration of regional revolving loan trust fund accounts pursuant to section 16-a and minority and women revolving loan trust fund accounts pursuant to section 16-c are eligible for a recapitalization grant.

6. (3) Terms.

   1. (i) Application may not be made for a recapitalization grant unless and until all funds previously allocated to the revolving loan trust fund account to which the request relates have been drawn down and disbursed to borrowers in accordance with the administering corporation's contract with the corporation and the regulations governing the revolving loan trust fund program.
   2. (ii) Funds disbursed by the corporation to an administering corporation pursuant to a revolving loan trust fund recapitalization grant shall be governed by and fully subject to the provisions of the regulations governing the revolving loan trust fund program, Part 4209 of this Title in the case of the regional revolving loan trust fund program and section 4230.6 of this Title in the case of a minority and women revolving loan trust fund program and the administering corporation's contract with the corporation.
   3. (iii) No recapitalization grant shall exceed $200,000.

7. (4) Selection criteria. In considering an application for a revolving loan trust fund recapitalization grant, the corporation shall consider, among others, the following factors:

   1. (i) the applicant's history of providing loans to businesses located in distressed areas, businesses owned by members of minority groups, women or displaced workers and businesses in the early stages of development that have been denied access to credit;
   2. (ii) evidence of actual jobs created in connection with projects funded by the applicant with revolving loan trust funds;
   3. (iii) the applicant's loan loss history; and

   4. (iv) the availability of other funds.

      (c) Matching grants.

      The corporation may make grants, within available appropriations, of up to $200,000 to provide the local match for appropriately federally financed community-based loan funds, in accordance with applicable Federal law and regulations.

(a) Capitalization grants.