Bill Text: NY A06621 | 2015-2016 | General Assembly | Amended
Bill Title: Relates to micro-businesses and micro-loans.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2016-08-19 - signed chap.254 [A06621 Detail]
Download: New_York-2015-A06621-Amended.html
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. LBD00174-10-6A. 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.
