This bill has been amended

Bill S4878A-2013

Requires the small business revolving loan fund to issue a certain percentage of its remaining principal or further appropriations to micro loans and micro seed loan

Requires the small business revolving loan fund to issue a certain percentage of its remaining principal or further appropriations to micro loans and micro seed loans.

Details

Actions

  • May 28, 2014: referred to small business
  • May 28, 2014: DELIVERED TO ASSEMBLY
  • May 28, 2014: PASSED SENATE
  • May 14, 2014: ADVANCED TO THIRD READING
  • May 13, 2014: 2ND REPORT CAL.
  • May 12, 2014: 1ST REPORT CAL.604
  • Mar 28, 2014: PRINT NUMBER 4878A
  • Mar 28, 2014: AMEND AND RECOMMIT TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • Jan 8, 2014: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • Apr 29, 2013: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Corporations, Authorities and Commissions - May 12, 2014
Ayes (5): Ranzenhofer, Flanagan, Larkin, Perkins, Squadron
Ayes W/R (1): Martins

Memo

BILL NUMBER:S4878A

TITLE OF BILL: An act to amend the New York state urban development corporation act, in relation to requiring the small business revolving loan fund to issue a certain percentage of its remaining principal or further appropriations to micro loans and micro seed loans

PURPOSE: The purpose of this bill is to increase micro loans and micro seed loans from existing and future funds in the small business revolving loan fund.

SUMMARY OF PROVISIONS:

Section 1 amends Subdivision 3 of section 16-t of section 1 of chapter 174 of the laws of 1968 as added by section 1 of part N of chapter 59 of the laws of 2010 by creating a new category of loan, micro seed loans, that have a principal amount less than five thousand dollars; making the definition of micro loans consistent; requiring that not less than fifteen percent of any remaining principal or further appropriation to the small business revolving loan fund shall be set aside for micro loans and not less than five percent of any remaining principal or further appropriation to the small business revolving loan fund shall be set aside for micro seed loans.

JUSTIFICATION: The small business revolving loan fund is meant to provide loans to small and micro businesses that need capital and have difficulty accessing credit markets. The 2010-11 budget provided $25 million in state funds and leveraged an additional $25 million in private matching funds. The latest available data indicates that the fund has disbursed approximately $10.5 million to small businesses through December 2011. Of that $10.5 million however, only $1.8 million (approximately 17%) has been awarded to micro loans of less than $25,000.

This bill will increase the number of micro loans and micro seed loans made by the small business revolving loan fund.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 4878--A 2013-2014 Regular Sessions IN SENATE April 29, 2013 ___________
Introduced by Sen. SQUADRON -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions -- recommitted to the Committee on Corporations, Authorities and Commissions in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the New York state urban development corporation act, in relation to requiring the small business revolving loan fund to issue a certain percentage of its remaining principal or further appropri- ations to micro loans and micro seed loans THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 3 of section 16-t of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, as amended by section 1 of part II of chapter 59 of the laws of 2013, is amended to read as follows: 3. Program loans to small businesses shall be targeted and marketed to minority and women-owned enterprises and other small businesses that are having difficulty accessing traditional credit markets. Program loans to small businesses shall be used for the creation and retention of jobs, as defined by the corporation, including: (a) working capital; (b) the acquisition and/or improvement of real property; (c) the acquisition of machinery and equipment, property or improvement; or (d) the refinancing of debt obligations. There shall be [two] THREE categories of loans to small businesses: A MICRO SEED LOAN THAT SHALL HAVE A PRINCIPAL AMOUNT LESS THAN FIVE THOUSAND DOLLARS; a micro loan that shall have a princi- pal amount [that is] NOT LESS THAN FIVE THOUSAND DOLLARS AND less than twenty-five thousand dollars; and a regular loan that shall have a prin- cipal amount not less than twenty-five thousand dollars. THE CORPO- RATION SHALL PROVIDE THAT NOT LESS THAN FIFTEEN PERCENT OF ANY REMAINING PRINCIPAL OR FURTHER APPROPRIATION OF THE FUND ON OR AFTER JULY FIRST,
TWO THOUSAND FOURTEEN IS SET ASIDE FOR MICRO LOANS. FURTHERMORE THE CORPORATION SHALL PROVIDE THAT NOT LESS THAN FIVE PERCENT OF ANY REMAIN- ING PRINCIPAL OR FURTHER APPROPRIATION OF THE FUND ON OR AFTER JULY FIRST, TWO THOUSAND FOURTEEN IS SET ASIDE FOR MICRO SEED LOANS. IN YEARS AFTER JULY FIRST, TWO THOUSAND FOURTEEN, WHEN THERE IS NO REMAINING PRINCIPAL OR THERE IS NO ADDITIONAL APPROPRIATION, NOT LESS THAN FIFTEEN PERCENT OF ANY GENERATED REVENUE SHALL BE SET ASIDE FOR MICRO LOANS. FURTHERMORE IN YEARS AFTER JULY FIRST, TWO THOUSAND FOURTEEN, WHEN THERE IS NO REMAINING PRINCIPAL OR THERE IS NO ADDITIONAL APPROPRIATION, NOT LESS THAN FIVE PERCENT OF ANY GENERATED REVENUE SHALL BE SET ASIDE FOR MICRO SEED LOANS. Prior to receiving program funds, the lending organ- ization must certify to the corporation that such loan complies with this section and rules and regulations promulgated for the program and that the lending organization has performed its obligations pursuant to and is in compliance with this section, the program rules and regu- lations and all agreements entered into between the corporation and the lending organization. The program funds amount used by the lending organization to fund a program applicant loan shall not be more than fifty percent of the principal amount of such loan. The program funds amount used by the lending organization to fund a program applicant loan shall not be greater than one hundred [and] twenty-five thousand dollars. Minority- and women-owned business enterprises and other small businesses who access such program loans under this subdivision shall not be precluded from accessing such short-term financing loans provided under subdivision eleven of this section. S 2. This act shall take effect immediately.

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