Bill Text: NY S04878 | 2013-2014 | General Assembly | Amended

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Bill Title: Requires the small business revolving loan fund to issue a certain percentage of its remaining principal or further appropriations to micro loans and micro seed loans.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2014-05-28 - referred to small business [S04878 Detail]

Download: New_York-2013-S04878-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        4878--A
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                    April 29, 2013
                                      ___________
       Introduced  by Sen. SQUADRON -- read twice and ordered printed, and when
         printed to be committed to the Committee on Corporations,  Authorities
         and  Commissions  --  recommitted  to  the  Committee on Corporations,
         Authorities and Commissions in accordance with Senate Rule 6,  sec.  8
         --  committee  discharged,  bill amended, ordered reprinted as amended
         and recommitted to said committee
       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  OR  FURTHER APPROPRIATION OF THE FUND ON OR AFTER JULY FIRST,
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01898-04-4
       S. 4878--A                          2
    1  TWO THOUSAND FOURTEEN IS SET ASIDE FOR MICRO  LOANS.    FURTHERMORE  THE
    2  CORPORATION SHALL PROVIDE THAT NOT LESS THAN FIVE PERCENT OF ANY REMAIN-
    3  ING  PRINCIPAL  OR  FURTHER  APPROPRIATION  OF THE FUND ON OR AFTER JULY
    4  FIRST, TWO THOUSAND FOURTEEN IS SET ASIDE FOR MICRO SEED LOANS. IN YEARS
    5  AFTER  JULY  FIRST,  TWO  THOUSAND  FOURTEEN, WHEN THERE IS NO REMAINING
    6  PRINCIPAL OR THERE IS NO ADDITIONAL APPROPRIATION, NOT LESS THAN FIFTEEN
    7  PERCENT OF ANY GENERATED REVENUE SHALL BE SET  ASIDE  FOR  MICRO  LOANS.
    8  FURTHERMORE IN YEARS AFTER JULY FIRST, TWO THOUSAND FOURTEEN, WHEN THERE
    9  IS  NO  REMAINING PRINCIPAL OR THERE IS NO ADDITIONAL APPROPRIATION, NOT
   10  LESS THAN FIVE PERCENT OF ANY GENERATED REVENUE SHALL BE SET  ASIDE  FOR
   11  MICRO  SEED  LOANS. Prior to receiving program funds, the lending organ-
   12  ization must certify to the corporation that  such  loan  complies  with
   13  this  section  and rules and regulations promulgated for the program and
   14  that the lending organization has performed its obligations pursuant  to
   15  and  is  in  compliance  with  this section, the program rules and regu-
   16  lations and all agreements entered into between the corporation and  the
   17  lending  organization.  The  program  funds  amount  used by the lending
   18  organization to fund a program applicant loan shall  not  be  more  than
   19  fifty  percent  of  the principal amount of such loan. The program funds
   20  amount used by the lending organization to fund a program applicant loan
   21  shall not  be  greater  than  one  hundred  [and]  twenty-five  thousand
   22  dollars.  Minority- and women-owned business enterprises and other small
   23  businesses  who  access  such program loans under this subdivision shall
   24  not be precluded from accessing such short-term financing loans provided
   25  under subdivision eleven of this section.
   26    S 2. This act shall take effect immediately.