Bill Text: NY S04202 | 2021-2022 | General Assembly | Introduced

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Bill Title: Relates to requiring the small business revolving loan fund to target and market to veteran-owned enterprises and service disabled veteran-owned enterprises.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS [S04202 Detail]

Download: New_York-2021-S04202-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          4202

                               2021-2022 Regular Sessions

                    IN SENATE

                                    February 2, 2021
                                       ___________

        Introduced  by  Sen. ADDABBO -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and Commissions

        AN ACT to amend the New York state urban development corporation act, in
          relation to requiring the small business revolving loan fund to target
          and  market to veteran-owned enterprises and service-disabled veteran-
          owned enterprises

          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  chapter  254 of the laws of 2016, is
     4  amended to read as follows:
     5    3. Program loans to small businesses  and  micro-businesses  shall  be
     6  targeted  and marketed to minority and women-owned enterprises, veteran-
     7  owned enterprises as set  forth  in  15  U.S.C.  section  632(Q)(3),  as
     8  amended  from  time  to  time, and service-disabled veteran-owned enter-
     9  prises as set forth in article seventeen-B of  the  executive  law,  and
    10  other  small  businesses and micro-businesses that are having difficulty
    11  accessing traditional credit markets. Program loans to small  businesses
    12  and  micro-businesses  shall  be  used for the creation and retention of
    13  jobs, as defined by the corporation, including: (a) working capital; (b)
    14  the acquisition and/or improvement of real property; (c) the acquisition
    15  of machinery and equipment, property or improvement; or  (d)  the  refi-
    16  nancing  of  debt obligations. There shall be two categories of loans to
    17  small businesses and micro-businesses: a micro loan that  shall  have  a
    18  principal  amount  that  is less than twenty-five thousand dollars and a
    19  regular loan that shall have a principal amount not  less  than  twenty-
    20  five  thousand  dollars.  Prior  to receiving program funds, the lending
    21  organization must certify to the corporation  that  such  loan  complies
    22  with  this section and rules and regulations promulgated for the program

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03401-01-1
        S. 4202                             2

     1  and that the lending organization has performed its obligations pursuant
     2  to and is in compliance with this section, the program rules  and  regu-
     3  lations  and all agreements entered into between the corporation and the
     4  lending  organization.  The  program  funds  amount  used by the lending
     5  organization to fund a program applicant loan shall  not  be  more  than
     6  fifty  percent  of  the principal amount of such loan. The program funds
     7  amount used by the lending organization to fund a program applicant loan
     8  shall not be greater than one hundred and twenty-five thousand  dollars.
     9  Minority-  and  women-owned  business  enterprises, veteran-owned enter-
    10  prises as set forth in 15 U.S.C. section 632(Q)(3), as amended from time
    11  to time, and service-disabled veteran-owned enterprises as set forth  in
    12  article  seventeen-B of the executive law, and other small businesses or
    13  micro-businesses who access such program loans  under  this  subdivision
    14  shall  not  be  precluded from accessing such short-term financing loans
    15  provided under subdivision eleven of this section.
    16    § 2. This act shall take effect immediately.