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S01690 Summary:

S01690 Actions:

S01690 Committee Votes:

S01690 Floor Votes:

S01690 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         1690--A
 
                               2023-2024 Regular Sessions
 
                    IN SENATE
 
                                    January 13, 2023
                                       ___________
 
        Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Banks -- reported  favora-
          bly  from  said committee and committed to the Committee on Finance --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted to said committee

        AN ACT to amend the banking law and the New York state urban development
          corporation act, in relation to the capital access program
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph (b) of subdivision 1 of section 212 of the  bank-
     2  ing law, as amended by chapter 1 of the laws of 1994, is amended to read
     3  as follows:
     4    (b) The corporation shall undertake the following programs in further-
     5  ance  of  the  above  objectives:  (i)  establish  regional  offices  at
     6  locations throughout New  York,  with  sufficient  staffing  to  advise,
     7  develop  and  package  financial  assistance  for small and medium sized
     8  businesses; (ii) develop a comprehensive outreach  program  to  increase
     9  the  visibility  and  awareness of the corporation's programs, including
    10  allocating budget and staff to establish and maintain an aggressive  and
    11  extensive  marketing  program of the corporation's program of assistance
    12  to small and medium sized businesses, providing for specific outreach to
    13  minority and women owned  enterprises,  and  entering  into  cooperative
    14  relationships  with  local chambers of commerce, local development agen-
    15  cies, local development corporations and other community based financial
    16  intermediaries as set forth in subdivision three of this section;  (iii)
    17  establish  and  operate,  or  affiliate with a small business investment
    18  company and a specialized small business investment company; [and]  (iv)
    19  establish  a  pilot  export  financing program, using personnel from the
    20  private sector, to evaluate whether the corporation can play  a  signif-
    21  icant  role  in  the  growth of the export industry in the state and (v)
    22  establish a program in cooperation with  the  empire  state  development
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05985-02-3
        S. 1690--A                          2
 
     1  corporation  that  shall  focus  on  small  businesses located in highly
     2  distressed areas  and  minority  and  women-owned  business  enterprises
     3  (MWBEs)  as  such designations are defined by the regulations of the New
     4  York  state  urban development corporation act, through which the corpo-
     5  ration shall be authorized to:   (A) act as third-party  agent  for  the
     6  capital  access  program established by section sixteen-k of section one
     7  of chapter one hundred seventy-four of  the  laws  of  nineteen  hundred
     8  sixty-eight,  constituting  the  urban  development corporation act; (B)
     9  process, fund and approve qualifying program loans made  by  the  corpo-
    10  ration  or  a  participating  financial  institution pursuant to section
    11  sixteen-k of section one of chapter one hundred seventy-four of the laws
    12  of nineteen hundred  sixty-eight,  constituting  the  urban  development
    13  corporation  act;  (C)  maintain  and  service a portfolio of qualifying
    14  loans made pursuant to the capital access program;  and  (D)  engage  in
    15  outreach  and  marketing to financial institutions to increase awareness
    16  of the program established  under  this  subparagraph.  The  corporation
    17  shall  undertake  the  programs  enumerated  herein at such times as its
    18  board of directors determines that the corporation's  capital  base  and
    19  available  funds  are adequate to support the operation of such program.
    20  The programs enumerated herein may be modified by the corporation as may
    21  be necessary to meet the changing  needs  of  the  state's  economy,  as
    22  determined by the board of directors.
    23    §  2.  Paragraph  (b) of subdivision 3 of section 16-k of section 1 of
    24  chapter 174 of the laws of 1968, constituting the New York  state  urban
    25  development  corporation  act,  as amended by chapter 103 of the laws of
    26  2011, is amended to read as follows:
    27    (b) Any contract entered into pursuant to subparagraph  (i)  of  para-
    28  graph (a) of this subdivision shall:
    29    (i)  be  for  a  period of two years and shall be renewed for an addi-
    30  tional two year period subject to requirements of subparagraph  (ii)  of
    31  paragraph (a) of this subdivision; [and]
    32    (ii) provide for compensation for expenses incurred by the third party
    33  agent  in  connection  with  its  services  as  agent and for such other
    34  services as the corporation may  deem  appropriate  including,  but  not
    35  limited  to  the use of the premises, personnel and personal property of
    36  the third party agent;
    37    (iii) notwithstanding any law, rule or regulation to the contrary, use
    38  the underwriting standards provided for  in  subdivision  four  of  this
    39  section to evaluate applications for loans pursuant to the program filed
    40  by  a  minority and women-owned business enterprise, or a small business
    41  whose principal place of business is in a highly distressed area;
    42    (iv) provide for the development of an integrated web portal  for  the
    43  third-party agent which enables access by minority and women-owned busi-
    44  ness  enterprises  and  small  businesses  in highly distressed areas to
    45  obtain information on the capital  access  loan  program  including  the
    46  ability  to  make  application  and  to  receive  approval for such loan
    47  online; and
    48    (v) provide funding for marketing  to  the  third-party  agent  to  be
    49  directed  to  potential loan recipients and to financial institutions to
    50  increase awareness participation and referrals  to  the  capital  access
    51  loan program.
    52    §  3.  Section  16-k  of section 1 of chapter 174 of the laws of 1968,
    53  constituting the New York state urban development  corporation  act,  is
    54  amended by adding two new subdivisions 4 and 5 to read as follows:
    55    4.  Notwithstanding  any  law, rule or regulation to the contrary, the
    56  department of financial services, the empire  state  development  corpo-
        S. 1690--A                          3
 
     1  ration  and  the New York business development corporation shall jointly
     2  establish underwriting standards  to  assist  minority  and  women-owned
     3  business enterprises and small businesses in highly distressed areas. In
     4  addition  to other factors, such standards should incorporate verifiable
     5  alternative indications of creditworthiness presented or made  available
     6  by the applicant.
     7    5.  Pursuant  to subparagraph (v) of paragraph (b) of subdivision 1 of
     8  section 212 of the banking law, the New York business development corpo-
     9  ration and the empire state development corporation shall enter into  an
    10  agreement  pursuant  to  which  the New York business development corpo-
    11  ration shall authorize, maintain and administer the program  established
    12  in such subparagraph.
    13    § 4. This act shall take effect on the one hundred twentieth day after
    14  it shall have become a law.