S T A T E O F N E W Y O R K
2013-2014 Regular Sessions
I N S E N A T E
January 9, 2013
Introduced by Sen. PERKINS -- read twice and ordered printed, and when
printed to be committed to the Committee on Finance
AN ACT to amend the economic development law, in relation to microenter-
prise development; and making an appropriation therefor
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "microenterprise development act".
S 2. Legislative findings and purpose. (a) The legislature finds as
1. Development and expansion of businesses in economically distressed
communities in both rural and urban areas can assist residents who are
unemployed, underemployed or in low-income jobs.
2. Microenterprises provide a means for unemployed, underemployed or
low-income individuals to find and sustain productive work, and they
provide opportunities for economically distressed communities to thrive.
3. Low-income microentrepreneurs lack access to capital, training and
technical assistance. Many low-income microentrepreneurs need lending
services and technical assistance to start, operate or expand their
4. Local microenterprise support organizations have demonstrated cost-
effective delivery methods for providing lending services and technical
5. Charitable foundation support, federal program funding and private
sector support can be leveraged by a statewide program for development
(b) The purpose of this act is to strengthen the state economy and
enable low-income residents to become self-sufficient by encouraging
S 3. The economic development law is amended by adding a new article
9-B to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S. 1224 2
SECTION 217. MICROENTERPRISE DEVELOPMENT.
S 217. MICROENTERPRISE DEVELOPMENT. (A) AS USED IN THIS SECTION, THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
1. "COMMISSIONER" MEANS THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC
2. "MICROENTERPRISE" MEANS A SOLE PROPRIETORSHIP, PARTNERSHIP, OR
CORPORATION THAT HAS FEWER THAN FOUR EMPLOYEES AND GENERALLY LACKS
ACCESS TO CONVENTIONAL LOANS, EQUITY, OR OTHER BANKING SERVICES.
3. "MICROENTERPRISE DEVELOPMENT ORGANIZATION" OR "MICROENTERPRISE
DEVELOPMENT PROGRAM" MEANS A NONPROFIT ENTITY OR A PROGRAM ADMINISTERED
BY SUCH AN ENTITY, INCLUDING COMMUNITY DEVELOPMENT CORPORATIONS OR OTHER
NONPROFIT DEVELOPMENT ORGANIZATIONS AND SOCIAL SERVICE ORGANIZATIONS,
THAT PROVIDES SERVICES TO LOW-INCOME MICROENTERPRISES.
4. "TRAINING AND TECHNICAL ASSISTANCE" MEANS SERVICES AND SUPPORT
PROVIDED TO LOW-INCOME OWNERS AND OPERATORS OF MICROENTERPRISES, SUCH AS
ASSISTANCE FOR THE PURPOSE OF ENHANCING BUSINESS PLANNING, MARKETING
MANAGEMENT, FINANCIAL MANAGEMENT SKILLS, AND ASSISTANCE FOR THE PURPOSE
OF ACCESSING FINANCIAL SERVICES.
5. "LOW-INCOME PERSON" MEANS A PERSON WITH INCOME ADJUSTED FOR FAMILY
SIZE THAT DOES NOT EXCEED:
A. FOR METROPOLITAN AREAS, EIGHTY PERCENT OF MEDIAN INCOME; OR
B. FOR NONMETROPOLITAN AREAS, THE GREATER OF EIGHTY PERCENT OF THE
AREA MEDIAN INCOME OR EIGHTY PERCENT OF THE STATEWIDE NONMETROPOLITAN
AREA MEDIAN INCOME.
(B) 1. THE COMMISSIONER SHALL ESTABLISH A MICROENTERPRISE TECHNICAL
ASSISTANCE AND CAPACITY BUILDING GRANT PROGRAM, WHICH SHALL RECEIVE AN
ANNUAL APPROPRIATION FROM THE LEGISLATURE OF NO LESS THAN ONE MILLION
DOLLARS, TO PROVIDE ASSISTANCE IN THE FORM OF GRANTS TO MICROENTERPRISE
2. A MICROENTERPRISE DEVELOPMENT ORGANIZATION SHALL USE GRANTS MADE
UNDER THIS PROGRAM TO PROVIDE TRAINING AND TECHNICAL ASSISTANCE TO LOW-
INCOME ENTREPRENEURS OPERATING MICROENTERPRISES.
3. THE COMMISSIONER SHALL ENSURE THAT NOT LESS THAN FIFTY PERCENT OF
THE FUNDS MADE AVAILABLE ARE USED TO BENEFIT PERSONS WHOSE INCOME,
ADJUSTED FOR FAMILY SIZE, IS NOT MORE THAN ONE HUNDRED FIFTY PERCENT OF
THE POVERTY LINE AS DEFINED IN 42 U.S.C. 9902(2).
4. A MICROENTERPRISE DEVELOPMENT ORGANIZATION MUST PROVIDE AT LEAST
ONE DOLLAR IN MATCHING FUNDS FOR EVERY DOLLAR OF STATE FINANCIAL ASSIST-
ANCE. FEES, GRANTS, AND GIFTS FROM PUBLIC OR PRIVATE SOURCES MAY BE USED
TO COMPLY WITH THE MATCHING FUNDS REQUIREMENT.
5. THE COMMISSIONER SHALL ESTABLISH BY REGULATION SUCH REQUIREMENTS AS
MAY BE NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SECTION.
S 4. The sum of one million five hundred thousand dollars
($1,500,000), or so much thereof as may be necessary, is hereby appro-
priated to the department of economic development out of any moneys in
the state treasury in the general fund to the credit of the state
purposes account, not otherwise appropriated, and made immediately
available, for the purpose of carrying out the provisions of this act.
Such moneys shall be payable on the audit and warrant of the comptroller
on vouchers certified or approved by the commissioner of economic devel-
opment, or his or her designee, in the manner prescribed by law.
S 5. This act shall take effect on the first of July next succeeding
the date on which it shall have become a law.