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A06621 Summary:

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A06621 Committee Votes:

A06621 Floor Votes:

A06621 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6621--B
                                                                Cal. No. 603
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 27, 2015
                                       ___________
 
        Introduced  by  M. of A. KIM, RODRIGUEZ -- read once and referred to the
          Committee on Small Business -- recommitted to the Committee  on  Small
          Business  in  accordance  with  Assembly  Rule  3, sec. 2 -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee -- reported and referred to the  Committee  on  Ways
          and  Means  --  reported  from committee, advanced to a third reading,
          amended and ordered reprinted, retaining its place  on  the  order  of
          third reading
 
        AN ACT to amend the New York state urban development corporation act, in
          relation to micro-businesses and micro loans
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivisions 1, 2, 3, and 5 of section 16-t of section 1 of
     2  chapter 174 of the laws of 1968, constituting the New York  state  urban
     3  development corporation act, as amended by section 1 of part II of chap-
     4  ter 59 of the laws of 2013, is amended to read as follows:
     5    1.  The  small business revolving loan fund program is hereby created.
     6  The corporation  is  authorized,  within  available  appropriations,  to
     7  provide  low  interest  loans  to community development financial insti-
     8  tutions, in order to provide funding for  those  lending  organizations'
     9  loans  to small businesses, and micro-businesses located within New York
    10  state, that generate economic growth and job creation  within  New  York
    11  state  but  that  are unable to obtain adequate credit or adequate terms
    12  for such credit. If in the discretion of the corporation the  use  of  a
    13  community  development  financial  institution  is not practicable based
    14  upon the application of rules and regulations developed  by  the  corpo-
    15  ration,  including,  but  not  limited to, assessments of geographic and
    16  administrative capacity, then  the  corporation  is  authorized,  within
    17  available appropriations, to provide low interest loans to the following
    18  other  local community based lending organizations: small business lend-
    19  ing consortia, certified  development  companies,  providers  of  United
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00174-10-6
        A. 6621--B                          2
 
     1  States  department  of  agriculture  business  and industrial guaranteed
     2  loans, United States small business administration loan providers, cred-
     3  it unions and community banks. As used in this section "small  business"
     4  means a business that is resident in New York state, independently owned
     5  and  operated,  not  dominant  in  its field, and employs one hundred or
     6  fewer persons. As used in this section "micro-business" means a business
     7  that is resident in New York state, independently  owned  and  operated,
     8  and employs less than five people.
     9    2.  In  order  for  a  lending  organization to be eligible to receive
    10  program funds, it must have established sufficient expertise to  analyze
    11  small  business  and  micro-businesses  applications  for program loans,
    12  evaluate the creditworthiness of small businesses, and  micro-businesses
    13  and  regularly  monitor  program  loans.  The lending organization shall
    14  review every program loan application in order to determine, among other
    15  things, the feasibility of the proposed use of the  requested  financing
    16  by  the  small  business  or micro-business applicant, the likelihood of
    17  repayment and the potential that the loan will generate economic  devel-
    18  opment  and  jobs  within New York state. The corporation shall identify
    19  eligible lending organizations through one or more competitive statewide
    20  or local solicitations. The corporation shall show preference in  award-
    21  ing  program  funds  to lending organizations who serve micro-businesses
    22  and micro-loans.
    23    3. Program loans to small businesses  and  micro-businesses  shall  be
    24  targeted  and marketed to minority and women-owned enterprises and other
    25  small businesses and micro-businesses that are having difficulty access-
    26  ing traditional credit markets. Program loans to  small  businesses  and
    27  micro-businesses  shall  be used for the creation and retention of jobs,
    28  as defined by the corporation, including: (a) working capital;  (b)  the
    29  acquisition  and/or improvement of real property; (c) the acquisition of
    30  machinery and equipment, property or improvement; or (d) the refinancing
    31  of debt obligations. There shall be two categories  of  loans  to  small
    32  businesses  and micro-businesses: a micro loan that shall have a princi-
    33  pal amount that is less than twenty-five thousand dollars and a  regular
    34  loan  that shall have a principal amount not less than twenty-five thou-
    35  sand dollars. Prior to receiving program funds, the lending organization
    36  must certify to the  corporation  that  such  loan  complies  with  this
    37  section  and  rules and regulations promulgated for the program and that
    38  the lending organization has performed its obligations pursuant  to  and
    39  is  in  compliance  with this section, the program rules and regulations
    40  and all agreements entered into between the corporation and the  lending
    41  organization.  The program funds amount used by the lending organization
    42  to fund a program applicant loan shall not be more than fifty percent of
    43  the principal amount of such loan. The program funds amount used by  the
    44  lending  organization  to  fund  a  program  applicant loan shall not be
    45  greater than one hundred and twenty-five thousand dollars. Minority- and
    46  women-owned business enterprises and other small businesses or micro-bu-
    47  sinesses who access such program loans under this subdivision shall  not
    48  be  precluded  from  accessing  such short-term financing loans provided
    49  under subdivision eleven of this section.
    50    5. With respect to its program loans,  the  lending  organization  may
    51  charge  application,  commitment  and  loan guarantee fees pursuant to a
    52  schedule of fees adopted by the lending organization and approved by the
    53  corporation. Approved micro-loans for  five  thousand  dollars  or  less
    54  shall have applications fees waived.
    55    § 2. This act shall take effect immediately.