Bill Text: NY A07728 | 2021-2022 | General Assembly | Amended
Bill Title: Provides for no interest rate for certain linked loans for certified service-disabled veteran-owned business enterprises, projects to provide financing necessary to carry out a procurement contract with an agency or authority or other entity of the state or federal government; defines "certified service-disabled veteran-owned business enterprise" means any service-disabled veteran-owned business enterprise as provided for in section 369-H of the executive law and certified pursuant to section 369-I of the executive law; makes related provisions.
Spectrum: Moderate Partisan Bill (Democrat 6-1)
Status: (Passed) 2022-11-10 - signed chap.587 [A07728 Detail]
Download: New_York-2021-A07728-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 7728--A Cal. No. 273 2021-2022 Regular Sessions IN ASSEMBLY May 20, 2021 ___________ Introduced by M. of A. STERN, BRONSON, STIRPE, GRIFFIN, SANTABARBARA -- read once and referred to the Committee on Economic Development -- ordered to a third reading, amended and ordered reprinted, retaining its place on the order of third reading AN ACT to amend the state finance law, in relation to the excelsior linked deposit program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 213 of the state finance law is amended by adding a 2 new subdivision 25 to read as follows: 3 25. "Certified service-disabled veteran-owned business enterprise" 4 means any service-disabled veteran-owned business enterprise as provided 5 for in section three hundred sixty-nine-h of the executive law and 6 certified pursuant to section three hundred sixty-nine-i of the execu- 7 tive law. 8 § 2. Paragraphs (f) and (g) of subdivision 11 of section 213 of the 9 state finance law, paragraph (f) as added by chapter 705 of the laws of 10 1993 and paragraph (g) as added by section 1 of part HH of chapter 59 of 11 the laws of 2013, are amended and a new paragraph (h) is added to read 12 as follows: 13 (f) any service business that is independently owned and operated, is 14 not dominant in its field, employs one hundred or fewer persons on a 15 full-time basis within the state, and is seeking financing through the 16 program for a project that will result in the retention or creation of 17 permanent private sector jobs within the state, other than a business 18 that sells a service rendered at a facility personally by an individual 19 for another individual, directly, without the intervention of a third 20 party, or a professional service business such as health, legal, 21 accounting, engineering, or architectural services[.]; or 22 (g) a qualifying technology or innovation business which business 23 employs one hundred or fewer employees within the state on a full-time 24 basis and engages in: 25 (1) biotechnologies, which shall be defined as technologies involving 26 the scientific manipulation of living organisms, especially at the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11424-02-1A. 7728--A 2 1 molecular and/or the sub-molecular genetic level, to produce products 2 conducive to improving the lives and health of plants, animals, and 3 humans; and the associated scientific research, pharmacological, mechan- 4 ical, and computational applications and services connected with these 5 improvements; 6 (2) information and communication technologies, equipment and systems 7 that involve advanced computer software and hardware, visualization 8 technologies, and human interface technologies; 9 (3) advanced materials and processing technologies that involve the 10 development, modification, or improvement of one or more materials or 11 methods to produce devices and structures with improved performance 12 characteristics or special functional attributes, or to activate, speed 13 up, or otherwise alter chemical, biochemical, or medical processes; 14 (4) electronic and photonic devices and components for use in produc- 15 ing electronic, optoelectronic, mechanical equipment and products of 16 electronic distribution with interactive media content; 17 (5) energy efficiency, renewable energy and environmental technolo- 18 gies, products, devices and services; or 19 (6) small scale systems integration and packaging[.]; or 20 (h) any certified service-disabled veteran-owned business enterprises 21 seeking financing necessary to carry out a procurement contract 22 with an agency or authority or other entity of the state or federal 23 government. 24 § 3. Paragraph (e) of subdivision 12 of section 213 of the state 25 finance law, as added by chapter 705 of the laws of 1993, is amended and 26 a new paragraph (f) is added to read as follows: 27 (e) for certified minority-and women-owned businesses, projects to 28 provide financing necessary to carry out a procurement contract with an 29 agency or authority or other entity of the state or federal govern- 30 ment[.]; or 31 (f) for certified service-disabled veteran-owned business enterprises, 32 projects to provide financing necessary to carry out a procurement 33 contract with an agency or authority or other entity of the state or 34 federal government. 35 § 4. Subdivision 1 of section 218 of the state finance law, as amended 36 by section 1 of part U of chapter 58 of the laws of 2012, is amended to 37 read as follows: 38 1. Linked loans made to certified businesses in empire zones or to 39 eligible businesses in highly distressed areas or to eligible businesses 40 that are defined in paragraph (b-1) of subdivision eleven of section two 41 hundred thirteen of this article that are located in a renewal community 42 or defined in paragraph (b-2) of such subdivision that are located in an 43 empowerment zone or defined in paragraph (b-3) of such subdivision that 44 are located in an enterprise community, respectively for eligible 45 projects defined in paragraph (c) of subdivision twelve of section two 46 hundred thirteen of this article or to service-disabled veteran-owned 47 business enterprises for an eligible project defined in paragraph (f) of 48 subdivision twelve of section two hundred thirteen of this article or to 49 minority- or women-owned business enterprises for an eligible project 50 defined in paragraph (e) of subdivision twelve of section two hundred 51 thirteen of this article or to a defense industry manufacturer for a 52 project defined in paragraph (d) of subdivision twelve of section two 53 hundred thirteen of this article or to an eligible business pursuant to 54 paragraph (a) of subdivision eleven of section two hundred thirteen of 55 this article that produces products defined in subdivision two of 56 section three hundred one of the agriculture and markets law for anA. 7728--A 3 1 eligible project as defined in paragraph (b) of subdivision twelve of 2 section two hundred thirteen of this article shall bear interest at a 3 fixed rate equal to three percentage points below the fixed interest 4 rate the lender would have charged for the loan in the absence of a 5 linked deposit based on its usual credit considerations. All other 6 linked loans shall bear interest at a fixed rate equal to two percentage 7 points below the fixed interest rate the lender would have charged for 8 the loan in the absence of a linked deposit based on its usual credit 9 considerations. Lenders shall certify to the commissioner of economic 10 development that the rate to be charged on a linked loan is two percent- 11 age points or three percentage points, as the case may be, below the 12 interest rate the lender would have charged for the loan in the absence 13 of a linked deposit. 14 § 5. Section 220 of the state finance law, as added by section 2 of 15 part H of chapter 60 of the laws of 2011, is amended to read as follows: 16 § 220. Renewal of linked deposit. A lender may, on behalf of a borrow- 17 er, apply to the commissioner of economic development to request a 18 renewal of the linked deposit for an additional four year period to 19 correspond with a second four year period of a borrower's linked loan. 20 The commissioner may grant such application if the commissioner deter- 21 mines that the borrower, during the second four year period of the 22 linked loan, will create additional industrial modernization benefits or 23 additional export trade benefits or additional jobs. If the commissioner 24 of economic development grants such application, the commissioner shall 25 notify the authorized depositor who made the linked deposit that the 26 commissioner has determined that the application satisfies the require- 27 ments of this article and shall request the authorized depositor to 28 continue the linked deposit with the lender for an additional four year 29 period in accordance with section ninety-eight-a of this chapter and 30 with the authorized depositor's established procedures. Such linked 31 deposit shall continue to be secured in accordance with the provisions 32 of section one hundred five of this chapter. The fixed interest rate on 33 the continued linked deposit shall be the linked deposit interest rate 34 in effect on the first day of the continuation of the linked deposit. 35 The authorized depositor and the lender shall enter into a written 36 deposit agreement governing the continuation of the linked deposit. The 37 interest rate payable on the linked loan for the second four year period 38 shall be, in the case of a certified business in an economic development 39 zone or an eligible business located in an economically distressed area 40 or federal empowerment zone or enterprise or renewal community or a 41 minority or women-owned business enterprise or service-disabled veter- 42 an-owned business enterprises, three percentage points below the inter- 43 est rate the lender would have charged for the loan in effect on the 44 first day of the continuation of the linked deposit; or in the case of a 45 business not located in an economic development zone or economically 46 distressed area or federal empowerment zone or enterprise or renewal 47 community or which is not a minority or women-owned business enterprise, 48 service-disabled veteran-owned business enterprises, two percentage 49 points below the interest rate the lender would have charged for the 50 loan in the absence of a linked deposit in effect on the first day of 51 the continuation of the linked deposit. 52 § 6. This act shall take effect immediately.
