New York State Assembly

 
•  Summary 
 
•  Actions 
 
•  Committee Votes 
 
•  Floor Votes 
 
•  Memo 
 
•  Text 
 
•  LFIN 
 
•  Chamber Video/Transcript 

S00571 Summary:

S00571 Actions:

S00571 Committee Votes:

S00571 Floor Votes:

S00571 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           571
 
                               2021-2022 Regular Sessions
 
                    IN SENATE
 
                                       (Prefiled)
 
                                     January 6, 2021
                                       ___________
 
        Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and Commissions
 
        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.  Subparagraph  (vii)  of paragraph (c) of subdivision 1 of
     2  section 16-c of section 1 of chapter 174 of the laws of 1968, constitut-
     3  ing the urban development corporation act, as amended by  section  1  of
     4  part  AA  of  chapter  55  of  the  laws  of 2014, is amended to read as
     5  follows:
     6    (vii) refinancing of debt or  equity  invested  in  an  enterprise  or
     7  project,  unless  the  chairperson of the corporation finds the terms of
     8  the original debt to be unreasonable as provided in subparagraph (ix) of
     9  paragraph (d) of this subdivision.
    10    § 2. Subparagraphs (vii) and (viii) of paragraph (d) of subdivision  1
    11  of section 16-c of section 1 of chapter 174 of the laws of 1968, consti-
    12  tuting  the  urban  development  corporation  act, subparagraph (vii) as
    13  amended and subparagraph (viii) as added by section  1  of  part  AA  of
    14  chapter  55 of the laws of 2014, are amended and a new subparagraph (ix)
    15  is added to read as follows:
    16    (vii) establish a comprehensive technical assistance program in  coop-
    17  eration  with the department of economic development to assist minority-
    18  and women-owned businesses and potential minority  and  women-entrepren-
    19  eurs; [and]
    20    (viii) notwithstanding any provision of law to the contrary, establish
    21  a minority- and women-owned business investment fund to provide critical

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04791-01-1
        S. 571                              2
 
     1  financial  support  to  foster the development of new and emerging ideas
     2  and products of minority- and women-owned business enterprises  as  well
     3  as  to  promote the long-term financial performance and success of early
     4  stage  enterprises  that  are  minority-  and women-owned start-ups. The
     5  selection of an eligible applicant and  beneficiary  companies  for  the
     6  minority-  and women-owned business investment fund shall be selected by
     7  the process established pursuant to subdivisions  two  through  four  of
     8  section  sixteen-u of this act. Minority- or women-owned business enter-
     9  prises who  participate  in  such  minority-  and  women-owned  business
    10  investment fund under this subdivision shall not be precluded from qual-
    11  ifying  for  any other assistance, grant or loan made available from the
    12  state[.]; and
    13    (ix) provide for the refinancing of debt  or  equity  invested  in  an
    14  enterprise  or project, provided that the chairperson of the corporation
    15  determines the terms of the original debt to be unreasonable. The appli-
    16  cant must submit a written  justification  to  the  chairperson  of  the
    17  corporation  for  each  loan  explaining  why the current loan is not on
    18  reasonable terms. Unreasonable terms of debt may  include  but  are  not
    19  limited to:
    20    (1) a demand or balloon maturity feature in the existing note;
    21    (2)  the  current maturity is not appropriate for the original purpose
    22  of the loan;
    23    (3) the existing debt being refinanced is on a  revolving  line  or  a
    24  credit card;
    25    (4) the interest rate is deemed unreasonable by the corporation; or
    26    (5) the loan is over-collateralized.
    27    §  3.  This  act shall take effect on the ninetieth day after it shall
    28  have become a law. Effective immediately, the addition, amendment and/or
    29  repeal of any rule or regulation necessary  for  the  implementation  of
    30  this  act  on its effective date are authorized to be made and completed
    31  on or before such effective date.