Bill Text: NY A06716 | 2023-2024 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to the capital access program; focuses on minority and women-owned business enterprises and small businesses located in highly distressed areas to assist them in processing and being approved for qualifying program loans; requires the engagement in outreach and marketing to financial institutions to increase awareness of the program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2023-06-07 - substituted by s1690a [A06716 Detail]
Download: New_York-2023-A06716-Introduced.html
Bill Title: Relates to the capital access program; focuses on minority and women-owned business enterprises and small businesses located in highly distressed areas to assist them in processing and being approved for qualifying program loans; requires the engagement in outreach and marketing to financial institutions to increase awareness of the program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2023-06-07 - substituted by s1690a [A06716 Detail]
Download: New_York-2023-A06716-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6716 2023-2024 Regular Sessions IN ASSEMBLY May 5, 2023 ___________ Introduced by M. of A. HUNTER -- read once and referred to the Committee on Economic Development AN ACT to amend the banking law and the New York state urban development corporation act, in relation to the capital access program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (b) of subdivision 1 of section 212 of the bank- 2 ing law, as amended by chapter 1 of the laws of 1994, is amended to read 3 as follows: 4 (b) The corporation shall undertake the following programs in further- 5 ance of the above objectives: (i) establish regional offices at 6 locations throughout New York, with sufficient staffing to advise, 7 develop and package financial assistance for small and medium sized 8 businesses; (ii) develop a comprehensive outreach program to increase 9 the visibility and awareness of the corporation's programs, including 10 allocating budget and staff to establish and maintain an aggressive and 11 extensive marketing program of the corporation's program of assistance 12 to small and medium sized businesses, providing for specific outreach to 13 minority and women owned enterprises, and entering into cooperative 14 relationships with local chambers of commerce, local development agen- 15 cies, local development corporations and other community based financial 16 intermediaries as set forth in subdivision three of this section; (iii) 17 establish and operate, or affiliate with a small business investment 18 company and a specialized small business investment company; [and] (iv) 19 establish a pilot export financing program, using personnel from the 20 private sector, to evaluate whether the corporation can play a signif- 21 icant role in the growth of the export industry in the state and (v) 22 establish a program in cooperation with the empire state development 23 corporation that shall focus on small businesses located in highly 24 distressed areas and minority business enterprises as such designations 25 are defined by the regulations of the New York state urban development EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05985-01-3A. 6716 2 1 corporation act, through which the corporation shall be authorized to: 2 (A) act as third-party agent for the capital access program established 3 by section sixteen-k of section one of chapter one hundred seventy-four 4 of the laws of nineteen hundred sixty-eight, constituting the urban 5 development corporation act; (B) process, fund and approve qualifying 6 program loans made by the corporation or a participating financial 7 institution pursuant to section sixteen-k of section one of chapter one 8 hundred seventy-four of the laws of nineteen hundred sixty-eight, 9 constituting the urban development corporation act; (C) maintain and 10 service a portfolio of qualifying loans made pursuant to the capital 11 access program; and (D) engage in outreach and marketing to financial 12 institutions to increase awareness of the program established under this 13 subparagraph. The corporation shall undertake the programs enumerated 14 herein at such times as its board of directors determines that the 15 corporation's capital base and available funds are adequate to support 16 the operation of such program. The programs enumerated herein may be 17 modified by the corporation as may be necessary to meet the changing 18 needs of the state's economy, as determined by the board of directors. 19 § 2. Paragraph (b) of subdivision 3 of section 16-k of section 1 of 20 chapter 174 of the laws of 1968, constituting the New York state urban 21 development corporation act, as amended by chapter 103 of the laws of 22 2011, is amended to read as follows: 23 (b) Any contract entered into pursuant to subparagraph (i) of para- 24 graph (a) of this subdivision shall: 25 (i) be for a period of two years and shall be renewed for an addi- 26 tional two year period subject to requirements of subparagraph (ii) of 27 paragraph (a) of this subdivision; [and] 28 (ii) provide for compensation for expenses incurred by the third party 29 agent in connection with its services as agent and for such other 30 services as the corporation may deem appropriate including, but not 31 limited to the use of the premises, personnel and personal property of 32 the third party agent; 33 (iii) notwithstanding any law, rule or regulation to the contrary, use 34 the underwriting standards provided for in subdivision four of this 35 section to evaluate applications for loans pursuant to the program filed 36 by a minority business enterprise, or a small business whose principal 37 place of business is in a highly distressed area; 38 (iv) provide for the development of an integrated web portal for the 39 third-party agent which enables access by minority business enterprises 40 and small businesses in highly distressed areas to obtain information on 41 the capital access loan program including the ability to make applica- 42 tion and to receive approval for such loan online; and 43 (v) provide funding for marketing to the third-party agent to be 44 directed to potential loan recipients and to financial institutions to 45 increase awareness participation and referrals to the capital access 46 loan program. 47 § 3. Section 16-k of section 1 of chapter 174 of the laws of 1968, 48 constituting the New York state urban development corporation act, is 49 amended by adding two new subdivisions 4 and 5 to read as follows: 50 4. Notwithstanding any law, rule or regulation to the contrary, the 51 department of financial services, the empire state development corpo- 52 ration and the New York business development corporation shall jointly 53 establish underwriting standards to assist minority business enterprises 54 and small businesses in highly distressed areas. In addition to other 55 factors, such standards should incorporate verifiable alternative indi-A. 6716 3 1 cations of creditworthiness presented or made available by the appli- 2 cant. 3 5. Pursuant to subparagraph (v) of paragraph (b) of subdivision 1 of 4 section 212 of the banking law, the New York business development corpo- 5 ration and the empire state development corporation shall enter into an 6 agreement pursuant to which the New York business development corpo- 7 ration shall authorize, maintain and administer the program established 8 in such subparagraph. 9 § 4. This act shall take effect on the one hundred twentieth day after 10 it shall have become a law.
