Bill Text: NY S00771 | 2019-2020 | General Assembly | Introduced
Bill Title: Provides that the department of labor in consultation with the department of family assistance is authorized and directed to solicit proposals to establish community loan programs providing small, no-interest loans to persons with income below 200% of the federal poverty level in order to become self-employed; requires the commissioner to contract with not-for-profit corps to administer loan pools.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO SOCIAL SERVICES [S00771 Detail]
Download: New_York-2019-S00771-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 771 2019-2020 Regular Sessions IN SENATE (Prefiled) January 9, 2019 ___________ Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Social Services AN ACT to amend the social services law, in relation to establishing the community capital loan program and providing for the filing of a report thereon The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The social services law is amended by adding a new section 2 131-bb to read as follows: 3 § 131-bb. Community capital loan program. 1. From amounts appropriated 4 for such purpose, the department of labor in consultation with the 5 department of family assistance is hereby authorized and directed to 6 solicit proposals to establish programs to be known as community capital 7 loan programs. Such programs shall provide small, no-interest loans to 8 persons with income below two hundred percent of the federal poverty 9 level for the purpose of assisting the loan recipient to become self-em- 10 ployed. Loans awarded through a community capital loan program may be 11 paid directly to a third party on behalf of a loan recipient and in 12 either case shall not constitute income or resources for the purposes of 13 public assistance and care so long as the funds are used for the 14 intended purpose. 15 2. The commissioner of labor shall enter into written agreements with 16 not-for-profit organizations or local government agencies to administer 17 loan pools. Agreements shall be entered into with no more than four 18 organizations and/or agencies, no more than one of which shall be 19 located in the city of New York. 20 3. Program sites shall be approved based on the demonstrated ability 21 of the organization or governmental agency to secure funding from 22 private and/or public sources sufficient to establish a loan pool to be 23 maintained through repayment agreements entered into by eligible low-in- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05956-01-9S. 771 2 1 come individuals. Funds awarded by the department of labor to approved 2 program sites shall be used for the express purposes of covering staff- 3 ing and administration costs associated with administering the loan 4 pool. 5 § 2. A program site, as provided in subdivision 3 of section 131-bb of 6 the social services law, as added by section one of this act, shall, 7 within one year of receiving approval by the department of labor, report 8 to the department of labor on the utilization of the loan pool, includ- 9 ing but not limited to, the number and average amount of the loans 10 awarded, the rate of repayment on the loans, the purposes for which the 11 loans were awarded, the financial circumstance of persons receiving the 12 loans, and the number of persons receiving loans who subsequently 13 required public assistance. The department of labor shall provide the 14 findings to the temporary president of the senate and the speaker of the 15 assembly within one month of receiving the reports. 16 § 3. This act shall take effect immediately.