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A00491 Summary:

BILL NOA00491
 
SAME ASNo Same As
 
SPONSORBichotte
 
COSPNSRPeoples-Stokes, Schimminger
 
MLTSPNSR
 
Amd 16-c, UDC Act
 
Allows businesses to use funds received from minority- and women-owned business development and lending program for the purpose of refinancing existing debt.
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A00491 Actions:

BILL NOA00491
 
01/09/2017referred to economic development
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A00491 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A491
 
SPONSOR: Bichotte
  TITLE OF BILL: An act to amend the urban development corporation act, in relation to allowing businesses to use funds received from the minor- ity and women-owned business development and lending program for the purpose of refinancing existing debt   PURPOSE OR GENERAL IDEA OF BILL: Allows businesses to use funds received from minority and women-owned business development and lending program for the purpose of refinancing existing debt.   SUMMARY OF SPECIFIC PROVISIONS: Section. 1. Subparagraphs (vi) and (vii) of paragraph (c) of subdivision 1 of section 16-c of section 1 of chapter 174 of the laws of 1968, constituting the urban development corporation act, as added by chapter 169 of the law of 1994, are amended.   JUSTIFICATION: Currently, the minority and women-owned business development and lending program does not allow small business to do debt refinancing. Modifying this existing loan program would permit a small business to refinance existing debt on more favorable terms, which would allow these busi- nesses to improve their cash flow. Too often, commercial credit cards are the first and only means for small businesses to access credit. And while credit cards provide relatively easy and convenient credit, inter- est rates are substantially higher (often topping @20%) than loans available through banks, credit unions, or CDFIs. For example, a small business with $20,000 in credit card debt could expect to pay $4,000 or more a year in interest on credit card debt. However, if the business could refinance that debt under one of the State's existing micro-loan programs, the interest payments could fail to as little as $1,200 to $1,600, saving the business nearly $3,000 a year. (www.nysmal lbiztaskforce.org)   PRIOR LEGISLATIVE HISTORY: 2011: Referred to Economic Development; 2012: Referred to Economic Development; 2013-2014: Referred to Economic Development; 2015-2016: A.7719; Referred to Economic Development;   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None   EFFECTIVE DATE: This act shall take effect immediately.
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A00491 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           491
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                     January 9, 2017
                                       ___________
 
        Introduced by M. of A. BICHOTTE -- read once and referred to the Commit-
          tee on Economic Development
 
        AN  ACT  to  amend the urban development corporation act, in relation to
          allowing businesses to  use  funds  received  from  the  minority  and
          women-owned  business  development and lending program for the purpose
          of refinancing existing debt

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subparagraphs (vi) and (vii) of paragraph (c) of subdivi-
     2  sion 1 of section 16-c of section 1 of chapter 174 of the laws of  1968,
     3  constituting  the  urban  development  corporation  act,  as  amended by
     4  section 1 of part AA of chapter 55 of the laws of 2014, are  amended  to
     5  read as follows:
     6    (vi) overnight lodging facilities[;
     7    (vii)  refinancing  of  debt  or  equity  invested in an enterprise or
     8  project].
     9    § 2. Subparagraphs (vii) and (viii) of paragraph (d) of subdivision  1
    10  of section 16-c of section 1 of chapter 174 of the laws of 1968, consti-
    11  tuting  the  urban  development  corporation  act, subparagraph (vii) as
    12  amended and subparagraph (viii) as added by section  1  of  part  AA  of
    13  chapter  55 of the laws of 2014, are amended and a new subparagraph (ix)
    14  is added to read as follows:
    15    (vii) establish a comprehensive technical assistance program in  coop-
    16  eration  with the department of economic development to assist minority-
    17  and women-owned businesses and potential minority  and  women-entrepren-
    18  eurs; [and]
    19    (viii) notwithstanding any provision of law to the contrary, establish
    20  a minority- and women-owned business investment fund to provide critical
    21  financial  support  to  foster the development of new and emerging ideas
    22  and products of minority- and women-owned business enterprises  as  well
    23  as  to  promote the long-term financial performance and success of early
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02001-01-7

        A. 491                              2
 
     1  stage enterprises that are  minority-  and  women-owned  start-ups.  The
     2  selection  of  an  eligible  applicant and beneficiary companies for the
     3  minority- and women-owned business investment fund shall be selected  by
     4  the  process  established  pursuant  to subdivisions two through four of
     5  section sixteen-u of this act. Minority- or women-owned business  enter-
     6  prises  who  participate  in  such  minority-  and  women-owned business
     7  investment fund under this subdivision shall not be precluded from qual-
     8  ifying for any other assistance, grant or loan made available  from  the
     9  state[.]; and
    10    (ix)  provide  for  the  refinancing  of debt or equity invested in an
    11  enterprise or project.
    12    § 3. This act shall take effect on the ninetieth day  after  it  shall
    13  have  become  a  law; provided, however, that effective immediately, the
    14  addition, amendment and/or repeal of any rule  or  regulation  necessary
    15  for  the implementation of this act on its effective date are authorized
    16  and directed to be made and completed on or before such effective date.
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