Directs the department of economic development to study methods for keeping small retail businesses within the state and create a pilot program to train and counsel small business owners and potential small business owners; appropriates $210,000 therefor.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2710
SPONSOR: Angelino TITLE OF BILL:
An act to amend the economic development law, in relation to directing
the department of economic development to study the attrition of small
retail businesses from the state and create a pilot program to help
maintain the existence of small businesses within the state and to train
and counsel small business owners and potential small business owners;
and making an appropriation therefor
PURPOSE OR GENERAL IDEA OF BILL:
This bill addresses the growing concern for the demise of small retail
businesses in New York State. It is the purpose of this bill to prevent
"mom and pop" stores from disappearing and to provide both current and
perspective small retail business owners with the opportunity to thrive.
This bill seeks to promote the growth of small retail businesses by
encouraging state and local chambers of commerce, and other local busi-
ness promoting entities, to create small retail business training coun-
cil to both current and perspective small business owners. The purpose
is to put all the safety valves in place so that banks feel comfortable
enough to grant a loan to individuals who may not possess the necessary
capital to get off their feet. The participating banks would in turn be
awarded with a tax credit for taking on a high-risk operator.
SUMMARY OF PROVISIONS:
The department of economic development is hereby directed to conduct a
comprehensive study relating to the ability to retain small retail busi-
ness within the state and is further directed to make recommendations in
accordance with its findings. The economic development law is to be
amended by adding a new section 139-a authorizing and directing the
commissioner to establish a small business owner and potential small
business owner training program within New York State. The purpose of
the pilot program is to prevent the demise of small retail businesses
within the state.
JUSTIFICATION:
Small businesses are decreasing at a rapid pace. In today's marketplace,
the small business owner struggles to compete with the large corporate
chain stores. At the heart of the problem is the fact that the opportu-
nity to sell small retail business is slim. Small business owners must
first find an individual with the capital to make a substantial down
payment on the purchase. If the perspective buyer does not have the
necessary capital, he/she often needs to have adequate business experi-
ence so that the bank will feel comfortable enough to grant a loan for
the investment. Unfortunately, this is not always the case. Individuals
often possess the desire to start their own business, but do not have
the money or background that will enable them to get themselves off
their feet. Consequently, their requests for a loan are denied and their
dream of starting their own business is brought to an abrupt halt. The
existence of small retail business within the state is crucial toward
the strengthening of the state's economy. Therefore, it is imperative
that steps be taken to help ensure for the future existence and stabili-
ty of these small businesses.
PRIOR LEGISLATIVE HISTORY:
None.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the State.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
2710
2023-2024 Regular Sessions
IN ASSEMBLY
January 26, 2023
___________
Introduced by M. of A. ANGELINO, BRABENEC, DeSTEFANO, LEMONDES, MANKTE-
LOW, McDONOUGH, MILLER, NORRIS -- read once and referred to the
Committee on Small Business
AN ACT to amend the economic development law, in relation to directing
the department of economic development to study the attrition of small
retail businesses from the state and create a pilot program to help
maintain the existence of small businesses within the state and to
train and counsel small business owners and potential small business
owners; and making an appropriation therefor
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative findings. The legislature finds that the number
2 of small businesses located within the boundaries of the state is
3 decreasing at a rapid pace. In today's market place, the small business
4 owner struggles to compete with the large corporate chain stores. The
5 legislature further finds that the existence of these small businesses
6 within the state is crucial toward the strengthening of the state's
7 economy. Therefore, it is imperative that steps be taken to help ensure
8 the future existence and stability of these small businesses.
9 § 2. The department of economic development is hereby directed to
10 conduct a comprehensive study relating to the ability to retain small
11 retail businesses within the state and is further directed to make
12 recommendations in accordance with its findings. Such study shall
13 include, but not be limited to:
14 1. The economic feasibility to grant money to communities to establish
15 small retail business retention and development plans.
16 2. The possibility of subsidizing, either in whole or in part, retail
17 entrepreneur education programs for small business owners throughout the
18 state.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06592-01-3
A. 2710 2
1 3. The use of tax credits, both income and property, for small retail
2 business owners to lessen their financial burden and to help them
3 compete with the highly funded corporation.
4 4. The possibility of implementing legislation guaranteeing loans to
5 small retail business owners at a low, fixed interest rate.
6 5. The economic feasibility to grant money to small retail business
7 owners for the upgrade of certain equipment.
8 6. The ability to create a small business incentive program. Such
9 program would:
10 a. require small retail business owners participating in the program
11 to commit to a five year program consisting of entrepreneur education
12 classes, management training, and consultations with financial advisors.
13 b. be devised so as to create incentives for banking institutions to
14 participate in the growth and production of new and existing small
15 retail businesses.
16 § 3. A report of the findings of such study, recommendations, and any
17 proposed legislation necessary to implement such recommendations shall
18 be filed with the governor, the temporary president of the senate, and
19 the speaker of the assembly within one year after the effective date of
20 this act.
21 § 4. The economic development law is amended by adding a new section
22 139-a to read as follows:
23 § 139-a. Small business owner and potential small business owner
24 training pilot program. 1. The commissioner is hereby authorized and
25 directed to establish a small business owner and potential small busi-
26 ness owner training program within New York state. The purpose of the
27 pilot program is to prevent the demise of small retail businesses within
28 the state. This pilot program seeks to promote the growth of small
29 retail businesses by encouraging state and local chambers of commerce
30 and other local business promoting entities to create small retail busi-
31 ness training and counsel to prospective business owners.
32 The commissioner shall promulgate regulations and requirements for the
33 establishment of a small business owner and potential small business
34 owner training program. A chamber of commerce or any other local busi-
35 ness promoting entity interested in participating in this pilot program
36 shall submit a proposal for approval by the commissioner which
37 describes:
38 a. the specific small business population to be served;
39 b. the manner in which such small businesses will be identified;
40 c. the specific small retail business training and counsel to business
41 owners and prospective business owners to be provided;
42 d. the manner in which such small retail business training and counsel
43 to business owners and prospective business owners shall be provided;
44 e. all associated costs;
45 f. the expected benefits of the training program;
46 g. the method to be utilized to measure the effectiveness of the
47 training program; and
48 h. such other information as the commissioner may deem necessary to
49 assure the success of the small business owner and potential small busi-
50 ness owner training pilot program.
51 2. Approval and terms of sponsors and small business owner and poten-
52 tial small business owner programs. The written approval of a sponsor's
53 application by the commissioner shall constitute authorization to a
54 sponsor to commence a small business owner and potential small business
55 owner program.
A. 2710 3
1 Such authorization shall be in effect for three years, absent revoca-
2 tion or extension by the commissioner.
3 3. Reporting and evaluation of the program. On or before each one year
4 anniversary of the pilot program's inception, the commissioner shall
5 submit a report to the governor and the legislature concerning the
6 programs established in this section and shall provide an evaluation as
7 to the effectiveness of the pilot program in meeting the purposes for
8 which it was established. Such report shall also recommend whether the
9 pilot program should be expanded to additional locations in the state
10 and shall estimate the financial cost of any such expansion.
11 § 5. The sum of two hundred ten thousand dollars ($210,000), or so
12 much thereof as may be necessary, is hereby appropriated to the depart-
13 ment of economic development from any moneys in the state treasury in
14 the general fund not otherwise appropriated for services and expenses;
15 including the expenses of the department of economic development, for
16 the purposes of carrying out the provisions of this act. Such sum shall
17 be payable on the audit and warrant of the state comptroller on vouchers
18 certified or approved by the commissioner of economic development, or
19 his duly designated representative in the manner provided by law. Not
20 more than fifteen percent of the monies hereby appropriated may be
21 expended for the costs of the department of economic development.
22 § 6. This act shall take effect immediately.
