NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6140A
SPONSOR: Cook TITLE OF BILL:
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
PURPOSE:
The purpose of this bill is to require the small business revolving loan
fund in the Empire State Development Corporation to target and market to
veteran-owned enterprises and service-disabled veteran-owned enter-
prises.
SUMMARY OF PROVISIONS:
Section 1 amends the New York State Urban Development Corporation Act to
require the small business revolving loan fund to target and market to
veteran-owned enterprises as set forth in 15 U.S.C. section 632(Q) (3),
as amended from time to time, and service-disabled veteran owned enter-
prises as set forth in article three of the Veterans' Services Law.
Section 2 of the bill establishes the effective date.
JUSTIFICATION:
The small business revolving loan fund currently targets and markets to
minority and women-owned enterprises. Veterans have contributed signif-
icantly to defending the freedoms that we cherish. In recent years, the
state has increased its specific set-asides for businesses owned by
service-disabled veteran owned enterprises in recognition of their
service and unique contributions. In recognition of their service to the
nation, this bill would require the small business revolving loan fund
to target and market to veteran-owned enterprises and service-disabled
veteran-owned enterprises, mirroring similar efforts already underway in
the state.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
There is no cost in adding these veteran-owned enterprises to the eligi-
bility criteria. Increased eligible applicants will likely lead to a
need for an increase in the current appropriation level for the revolv-
ing loan fund, to ensure that there is not a loss in opportunity for
currently eligible applicants. Any such increased appropriations shall
be negotiated within the context of the yearly state budget.
STATE OF NEW YORK
________________________________________________________________________
6140--A
2023-2024 Regular Sessions
IN ASSEMBLY
April 3, 2023
___________
Introduced by M. of A. COOK -- read once and referred to the Committee
on Small Business -- 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 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 three of the veterans' services 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.
LBD04336-02-3
A. 6140--A 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 three of the veterans' services law, and other small businesses
13 or 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.
