Bill Text: NY A06621 | 2015-2016 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to micro-businesses and micro-loans.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2016-08-19 - signed chap.254 [A06621 Detail]

Download: New_York-2015-A06621-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6621
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                    March 27, 2015
                                      ___________
       Introduced by M. of A. KIM -- read once and referred to the Committee on
         Small Business
       AN ACT to amend the New York state urban development corporation act, in
         relation  to requiring the small business revolving loan fund to issue
         a certain percentage of its remaining principal or  further  appropri-
         ations to micro loans and micro seed loans
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subdivision 3 of section 16-t of section 1 of  chapter  174
    2  of  the  laws of 1968, constituting the New York state urban development
    3  corporation act, as amended by section 1 of part II of chapter 59 of the
    4  laws of 2013, is amended to read as follows:
    5    3. Program loans to small businesses shall be targeted and marketed to
    6  minority and women-owned enterprises and other small businesses that are
    7  having difficulty accessing traditional credit markets. Program loans to
    8  small businesses shall be used for the creation and retention  of  jobs,
    9  as  defined  by the corporation, including: (a) working capital; (b) the
   10  acquisition and/or improvement of real property; (c) the acquisition  of
   11  machinery and equipment, property or improvement; or (d) the refinancing
   12  of  debt  obligations. There shall be [two] THREE categories of loans to
   13  small businesses:  A MICRO SEED LOAN THAT SHALL HAVE A PRINCIPAL  AMOUNT
   14  LESS  THAN FIVE THOUSAND DOLLARS; a micro loan that shall have a princi-
   15  pal amount [that is] NOT LESS THAN FIVE THOUSAND DOLLARS AND  less  than
   16  twenty-five thousand dollars; and a regular loan that shall have a prin-
   17  cipal  amount  not  less  than twenty-five thousand dollars.  THE CORPO-
   18  RATION SHALL PROVIDE THAT NOT LESS THAN FIFTEEN PERCENT OF ANY REMAINING
   19  PRINCIPAL, INTEREST, OR FURTHER APPROPRIATION OF THE FUND  ON  OR  AFTER
   20  JULY FIRST, TWO THOUSAND SIXTEEN IS SET ASIDE FOR MICRO LOANS.  FURTHER-
   21  MORE  THE  CORPORATION  SHALL PROVIDE THAT NOT LESS THAN FIVE PERCENT OF
   22  ANY REMAINING PRINCIPAL, INTEREST, OR FURTHER APPROPRIATION OF THE  FUND
   23  ON OR AFTER JULY FIRST, TWO THOUSAND SIXTEEN IS SET ASIDE FOR MICRO SEED
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00174-02-5
       A. 6621                             2
    1  LOANS.    THE  REMAINING  PRINCIPAL,  INTEREST, OR FURTHER APPROPRIATION
    2  SHALL BE USED FOR MICRO SEED LOANS, MICRO LOANS, OR  REGULAR  LOANS,  OR
    3  FOR  ASSOCIATED  SERVICES AND EXPENSES.   IN YEARS AFTER JULY FIRST, TWO
    4  THOUSAND  SIXTEEN,  WHEN  THERE IS NO REMAINING PRINCIPAL OR THERE IS NO
    5  ADDITIONAL APPROPRIATION, NOT LESS THAN FIFTEEN PERCENT OF ANY GENERATED
    6  INTEREST SHALL BE SET ASIDE FOR MICRO LOANS.  FURTHERMORE IN YEARS AFTER
    7  JULY FIRST, TWO THOUSAND SIXTEEN, WHEN THERE IS NO  REMAINING  PRINCIPAL
    8  OR  THERE  IS NO ADDITIONAL APPROPRIATION, NOT LESS THAN FIVE PERCENT OF
    9  ANY GENERATED INTEREST SHALL BE SET ASIDE FOR MICRO  SEED  LOANS.    THE
   10  REMAINING  INTEREST  SHALL BE USED FOR MICRO SEED LOANS, MICRO LOANS, OR
   11  REGULAR LOANS, OR FOR ASSOCIATED SERVICES AND EXPENSES. Prior to receiv-
   12  ing program funds, the lending organization must certify to  the  corpo-
   13  ration  that  such  loan  complies with this section and rules and regu-
   14  lations promulgated for the program and that  the  lending  organization
   15  has performed its obligations pursuant to and is in compliance with this
   16  section,  the  program  rules and regulations and all agreements entered
   17  into between the corporation and the lending organization.  The  program
   18  funds  amount  used by the lending organization to fund a program appli-
   19  cant loan shall not be more than fifty percent of the  principal  amount
   20  of  such loan. The program funds amount used by the lending organization
   21  to fund a program applicant loan shall not be greater than  one  hundred
   22  [and]  twenty-five thousand dollars.  Minority- and women-owned business
   23  enterprises and other small businesses who  access  such  program  loans
   24  under this subdivision shall not be precluded from accessing such short-
   25  term financing loans provided under subdivision eleven of this section.
   26    S 2. This act shall take effect immediately.