BILL NO A02063A
SAME AS No same as
SPONSOR Quart (MS)
COSPNSR Blake, Joyner, Colton, Mosley, Robinson
MLTSPNSR Brennan, Brindisi, Gunther, Hooper, Jaffee, Kearns, Lavine, Lupardo,
Rosenthal, Schimel, Seawright, Simanowitz, Titone, Titus, Weprin
Add Art 9-B S217, Ec Dev L
Establishes the microenterprise development act to assist very small businesses
and low-income business people.
TITLE OF BILL: An act to amend the economic development law, in
relation to microenterprise development
PURPOSE OR GENERAL IDEA OF BILL: Establishes the microenterprise
development act to assist very small businesses and low-income
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Short Title
Section 2: Legislative Findings and Purpose
Section 3: Adds a new article 9-B, Section 217 to the economic
development law. This article would:
* require the commissioner of the department of economic development
to establish a grant program for microenterprise technical assistance;
* establish that the organizations receiving funding shall use the
grants to provide training and technical assistance to the
* provide that not less than fifty percent of the funds made available
are used to benefit person whose income is not more than 150% of the
* require the training organizations to have received at least one
dollar in matching funds for every dollar received from the state.
Section 4: Rules and Regulations
Section 5: Effective Date
JUSTIFICATION: Development and expansion of businesses in
economically distressed communities in both rural and urban areas can
assist residents who are unemployed, underemployed or in low-income
jobs. Microenterprises can address this need for development. However,
many low-income entrepreneurs lack access to capital, training and
technical assistance. This legislation will provide vital funding to
local support organizations that can leverage charitable foundation
and private sector support, to provide these entrepreneurs with vital
assistance. An estimated 22 million microenterprises operate
throughout the country and provide 18% of all private U.S.
employment. This legislation will strengthen the state economy by
enabling new businesses and giving them the tools needed to succeed.
PRIOR LEGISLATIVE HISTORY: 2015: Re-referenced to Small Business
Committee 2014: Referred to Economic Development 2012: Reported from
Economic Development, referred to Ways and Means 2011: Referred to
Economic Development 2010: Referred to Economic Development 2008:
Referred to Economic Development
FISCAL IMPLICATIONS: None noted.
EFFECTIVE DATE: This act shall take effect on the July 1, 2016.
S T A T E O F N E W Y O R K
2015-2016 Regular Sessions
I N A S S E M B L Y
January 15, 2015
Introduced by M. of A. QUART, BLAKE, JOYNER, COLTON, MOSLEY, ROBINSON --
Multi-Sponsored by -- M. of A. BRENNAN, BRINDISI, GUNTHER, HOOPER,
JAFFEE, KEARNS, LAVINE, LUPARDO, ROSENTHAL, SCHIMEL, SEAWRIGHT, SIMA-
NOWITZ, TITONE, TITUS, WEPRIN -- read once and referred to the Commit-
tee on Economic Development -- reference changed to the Committee on
Small Business -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the economic development law, in relation to microenter-
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "microenterprise development act".
3 S 2. Legislative findings and purpose. (a) The legislature finds as
5 1. Development and expansion of businesses in economically distressed
6 communities in both rural and urban areas can assist residents who are
7 unemployed, underemployed or in low-income jobs.
8 2. Microenterprises are important elements of New York's economy and
9 play an essential role in job creation, entrepreneurial skill develop-
10 ment, and enhancing the ability of low-income households to become self-
11 sufficient. Microenterprises provide a means for unemployed, underem-
12 ployed or low-income individuals to find and sustain productive work,
13 and they provide opportunities for economically distressed communities
14 to thrive.
15 3. Microentrepreneurs, especially those with low incomes, often do not
16 have access to commercial credit because of lack of business experience
17 or training, collateral to secure business loans, or lack of history of
18 business records to demonstrate their loan repayment potential.
19 4. Local community-based microenterprise support organizations have
20 demonstrated cost-effective delivery methods for providing financial,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
A. 2063--A 2
1 business, and technical assistance, including microloans, mentoring,
2 physical space and other essential services to microenterprises.
3 5. Charitable foundation support, federal program funding and private
4 sector support can be leveraged by a statewide program for development
5 of microenterprises.
6 (b) The purpose of this act is to strengthen the state economy and
7 enable low-income residents to become self-sufficient by encouraging
8 microenterprise development.
9 S 3. The economic development law is amended by adding a new article
10 9-B to read as follows:
11 ARTICLE 9-B
12 MICROENTERPRISE DEVELOPMENT
13 SECTION 217. MICROENTERPRISE DEVELOPMENT.
14 S 217. MICROENTERPRISE DEVELOPMENT. (A) THERE IS HEREBY ESTABLISHED A
15 MICROENTERPRISE DEVELOPMENT PROGRAM UNDER THE PURVIEW OF THE DEPARTMENT
16 OF ECONOMIC DEVELOPMENT. SUCH PROGRAM SHALL PROVIDE MICROENTERPRISES
17 WITH FINANCIAL, BUSINESS, OR TECHNICAL ASSISTANCE, INCLUDING, BUT NOT
18 LIMITED TO, ACCESS TO FINANCING, MENTORING, TRAINING OR ACQUIRING PHYS-
19 ICAL SPACE.
20 (B) AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
21 FOLLOWING MEANINGS:
22 1. "COMMISSIONER" MEANS THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC
24 2. "MICROENTERPRISE" MEANS ANY BUSINESS, WHETHER NEW OR EXISTING, THAT
25 IS A SOLE PROPRIETORSHIP, PARTNERSHIP, OR CORPORATION WHICH HAS FIVE OR
26 LESS EMPLOYEES.
27 3. "MICROENTERPRISE DEVELOPMENT ORGANIZATION" MEANS A COMMUNITY-BASED
28 ORGANIZATION, OR SOCIAL SERVICE ORGANIZATION, OR OTHER NONPROFIT ENTITY
29 THAT HAS DEVELOPED A PROGRAM TO PROVIDE MICROENTERPRISES WITH FINANCIAL,
30 BUSINESS, OR TECHNICAL ASSISTANCE, INCLUDING, BUT NOT LIMITED TO, ACCESS
31 TO FINANCING, MENTORING, TRAINING, OR ACQUIRING PHYSICAL SPACE.
32 4. "TRAINING AND TECHNICAL ASSISTANCE" MEANS SERVICES AND SUPPORT
33 PROVIDED TO MICROENTERPRISES, ESPECIALLY THOSE THAT ARE LOW-INCOME
34 OWNERS, FOR ENHANCING BUSINESS PLANNING, MARKETING MANAGEMENT, AND
35 IMPROVING FINANCIAL MANAGEMENT SKILLS, FOR THE PURPOSE OF ACCESSING
36 FINANCIAL SERVICES, SUCH AS LOANS, MICROLOANS AND GRANTS.
37 5. "LOW-INCOME PERSON" MEANS A PERSON WITH INCOME ADJUSTED FOR FAMILY
38 SIZE THAT DOES NOT EXCEED:
39 A. FOR METROPOLITAN AREAS, EIGHTY PERCENT OF MEDIAN INCOME OF THE
40 METROPOLITAN AREA; OR
41 B. FOR NONMETROPOLITAN AREAS, THE GREATER OF EIGHTY PERCENT OF THE
42 AREA MEDIAN INCOME OR EIGHTY PERCENT OF THE STATEWIDE NONMETROPOLITAN
43 AREA MEDIAN INCOME.
44 (C) 1. THE COMMISSIONER IS AUTHORIZED TO ESTABLISH A MICROENTERPRISE
45 TECHNICAL ASSISTANCE AND CAPACITY BUILDING GRANT PROGRAM TO PROVIDE
46 ASSISTANCE IN THE FORM OF GRANTS OF UP TO FIVE THOUSAND DOLLARS TO
47 MICROENTERPRISE DEVELOPMENT ORGANIZATIONS TO USE AS PROVIDED IN THIS
48 SUBDIVISION FROM AVAILABLE APPROPRIATIONS.
49 2. A MICROENTERPRISE DEVELOPMENT ORGANIZATION SHALL USE GRANTS MADE
50 UNDER THIS PROGRAM TO PROVIDE TRAINING AND TECHNICAL ASSISTANCE TO LOW-
51 INCOME ENTREPRENEURS OPERATING MICROENTERPRISES.
52 3. THE COMMISSIONER SHALL ENSURE THAT NOT LESS THAN FIFTY PERCENT OF
53 THE FUNDS MADE AVAILABLE ARE USED TO BENEFIT PERSONS WHOSE INCOME,
54 ADJUSTED FOR FAMILY SIZE, IS NOT MORE THAN ONE HUNDRED FIFTY PERCENT OF
55 THE POVERTY LINE AS DEFINED IN 42 U.S.C. 9902(2).
A. 2063--A 3
1 4. A MICROENTERPRISE DEVELOPMENT ORGANIZATION MUST PROVIDE AT LEAST
2 ONE DOLLAR IN MATCHING FUNDS FOR EVERY DOLLAR OF STATE FINANCIAL ASSIST-
3 ANCE. FEES, GRANTS, AND GIFTS FROM PUBLIC OR PRIVATE SOURCES MAY BE USED
4 TO COMPLY WITH THE MATCHING FUNDS REQUIREMENT.
5 5. THE COMMISSIONER SHALL ASSIST MICROENTERPRISES TO ACCESS EXISTING
6 GRANTS, LOANS, AND OTHER PROGRAMS AND SERVICES CURRENTLY AVAILABLE FROM
7 ANY STATE ENTITY. FURTHER, THE COMMISSIONER SHALL ACTIVELY SEEK TO
8 ENCOURAGE PRIVATE FINANCIAL INSTITUTIONS TO MAKE LOANS TO MICROENTER-
10 S 4. Rules and regulations. The commissioner of economic development
11 is authorized to promulgate rules and regulations in accordance with the
12 state administrative procedure act that are necessary to fulfill the
13 purposes of this act. Such rules and regulations shall be completed
14 within one hundred eighty days after the effective date of this act.
15 S 5. This act shall take effect July 1, 2016.