Formal Application Review Criteria

Section 560 Section 560.40  Formal Application Review Criteria The Department will accept and review formal applications based on the following criteria: a)         Economic Impact 1)         The actual need for the type of incubator given the community's economy and services offered by the facility. 2)         The number of businesses that could be housed in the proposed facility, and the expected number of new business starts. 3)         The job creation potential of the incubator and the job creation in relation to Department funds requested. 4)         The extent to which the incubator services an economically depressed area. 5)         The location of the incubator, in order to encourage geographic distribution. b)         Incubator Management 1)         The past experience or previous performance of the applicant (e.g. success in previous projects and the level of compliance with previous grant agreements) and demonstrations of management capability to deliver the incubator benefits pursuant to Section 11-3 of P.A. 84-109. 2)         Evidence of experience of the individual selected to manage day-to-day incubator operations. 3)         The scope of coordination with local areawide economic development programs. 4)         Demonstration by letters of support that the incubator project is supported by local representative of business, labor and education. c)         Proposed Activities 1)         The type and condition of the building being proposed for use as an incubator. 2)         A reasonable time schedule for the initiation and completion of the project. 3)         The quality and depth of management assistance mechanisms and services offered to incubator clients. 4)         The ability of the local sponsor to obtain funding commitments to assist the financing of start-up firms. 5)         The incubator's marketing effort. 6)         The thoroughness of the incubator's proposed entry and exit procedures and documentation. 7)         The costs and types of faculty services to be provided. d)         Financial 1)         The identification of sources and use of funds. 2)         The degree to which the local sponsor contributes monetarily or in-kind. 3)         Whether the local sponsor has a financial commitment of at least fifty percent of the projected costs of establishing and administering the incubator facility. 4)         The degree to which the local sponsor has a financial commitment for the projected reimbursed costs of maintenance of the incubator. 5)         The projected income and expenses of the incubator and cash flow in relation to debt services. 6)         Justification for any waivers or deferrals of loan repayment. 7)         Firm written cost estimates from contractors, suppliers, etc. to indicate cost feasibility.