senate Bill S1253

Relates to the small business regional revolving loan program

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Jan / 2013
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 08 / Jan / 2014
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Summary

Relates to the small business regional revolving loan program.

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Bill Details

Versions:
S1253
Legislative Cycle:
2013-2014
Current Committee:
Senate Corporations, Authorities And Commissions
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Amd §§16-a, 16-c, 16-e & 16-l, UDC Act
Versions Introduced in Previous Legislative Cycles:
2011-2012: S1823
2009-2010: S3443A

Sponsor Memo

BILL NUMBER:S1253

TITLE OF BILL:
An act
to amend the New York state urban development corporation act, in
relation to the small business
regional revolving loan trust fund and the small
business regional revolving loan program

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to improve small business job
opportunities within the state.

SUMMARY OF SPECIFIC PROVISIONS:

Section One provides statement for legislative intent and renames the
Regional Revolving Loan program to the "Small Business Regional
Revolving Loan Program."

Section Two provides process for audit and proposal requests.

Section Three repeals and re-letters sections of the UDC.

Section Four amends subsection (12) of §16-a of the UDC.

Section Five provide purposes for refinancing existing loans of debts.

Section Six provides terms and conditions for usage of funds.

Section Seven provides effective date.

JUSTIFICATION:

Small businesses are the economic backbone of the state and a
significant source of jobs. However, they often have difficulty
obtaining small amounts of capital from traditional banking
organizations. These funds are often critical to start-up, improve,
or expand operations.
However, State assistance in the form of loans address these capital
needs would enable the formation and expansion of small businesses
across the State. The result would be a reinvigorated small business
climate able to sustain both ways and job growth. Renaming the
Regional Revolving Loan program to the Small Business Regional
Revolving Loan Program will reinforce the intent of the program to as
a catalyst for growing small business. This legislation would ensure
a more efficient and effective system for providing such loans, by
utilizing regional not-for-profit corporations that are knowledgeable
about local businesses and economic conditions.

PRIOR LEGISLATIVE HISTORY:
S.1823 of 2011-12 - Referred to Corporations Authorities & Commissions
S.3443A of 2009-10 - Referred to Corporations Authorities & Commissions;
Reported to Finance
A.9128 of 2007-2008 - Passed Assembly & Referred to Corporations,
Authorities & Commissions in the Senate


FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Undetermined.

EFFECTIVE DATE:
Immediately.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1253

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen. PERKINS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN ACT to amend the New York state urban development corporation act, in
  relation  to the small business regional revolving loan trust fund and
  the small business regional revolving loan program

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Statement  of  legislative intent. The legislature hereby
finds and declares that small businesses are the  economic  backbone  of
the  state  and  the  source  of a majority of new jobs. The legislature
further finds that such businesses often have difficulty obtaining small
amounts of capital from traditional banking organizations that is neces-
sary to start-up, improve, or expand operations. State assistance in the
form of loans to meet such capital gaps would enable the  formation  and
expansion  of  small  businesses across the state and, thus, provide job
opportunities to the state's citizens.  The  legislature  further  finds
that  the  existing  regional  revolving loan program of the state urban
development corporation demonstrated  that  it  is  more  efficient  and
effective  to  provide such loans through regional not-for-profit corpo-
rations that are  knowledgeable  about  local  businesses  and  economic
conditions.  Therefore,  it  is the intent of the legislature to improve
job opportunities in the state by  revitalizing  the  urban  development
corporation's regional revolving loan program and re-naming it the small
business regional revolving loan program.
  S 2. The New York state urban development corporation created by chap-
ter  174  of  the  laws of 1968 is hereby directed to audit, pursuant to
subdivision 19 of section 16-a of section 1  of  the  urban  development
corporation  act,  each  existing  regional  corporation administering a
small business regional revolving loan fund and to either recertify such
regional corporation or decertify such regional corporation and competi-
tively select a successor corporation to administer the  small  business
regional revolving loan fund.  In the case of regions that do not have a

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03581-01-3

S. 1253                             2

regional  corporation  administering a small business regional revolving
loan fund or that have a decertified  regional  corporation,  the  urban
development corporation shall issue a request for proposals, pursuant to
the  provisions  of  section  16-a of section 1 of the urban development
corporation act, to administer small business  regional  revolving  loan
funds. The corporation shall select from the proposals received the most
qualified  applicant in each region pursuant to subdivisions 4, 5, and 6
of such section 16-a. If there is no applicant or no qualified applicant
in a region of the state, that region shall not participate in the small
business regional revolving loan fund  program.  The  corporation,  from
money  available for this purpose, shall allocate funds to each regional
corporation pursuant to subdivision 1 of such section 16-a.
  S 3.  Section 16-a of section 1 of chapter 174 of the  laws  of  1968,
constituting  the  New  York state urban development corporation act, as
amended by chapter 477 of the laws of 2002, subdivisions 20  and  21  as
amended  by  chapter  524  of  the  laws  of 2005, is amended to read as
follows:
  S 16-a. [Regional] SMALL BUSINESS REGIONAL revolving loan program. (1)
The corporation shall establish a fund to be known as the  "SMALL  BUSI-
NESS  regional  revolving  loan trust fund" and shall pay into such fund
any monies made available to the corporation  for  such  fund  from  any
source.  The  monies  held  in or credited to the fund shall be expended
solely for the purposes set forth in this section. The corporation shall
not commingle the monies of such fund  with  any  other  monies  of  the
corporation or any monies held in trust by the corporation.
  (2)  The corporation shall allocate any monies made available for such
fund for the purpose of making  grants  to  regional  corporations.  The
grants shall be allocated as follows:
  (a) fifty percent divided equally among the regions;
  (b)  fifty  percent  according to a formula weighted in favor of those
regions with the greatest levels of economic distress as  determined  by
poverty  rates, number of persons receiving public assistance, unemploy-
ment rates, rate of employment decline  and  such  other  indicators  of
economic distress as the corporation deems appropriate; and
  (c)  in  the event a regional corporation advises the corporation that
it does not require all or a portion of  the  funds  to  be  distributed
pursuant  to this subdivision, such funds shall be re-distributed by the
corporation equally among the other regional corporations.
  (3) In accordance with the rules and regulations of  the  corporation,
each  regional  corporation  shall  establish  two  special accounts for
monies received by the regional corporation pursuant to  the  provisions
of  this  section. The grant monies received from the corporation, earn-
ings on such monies, and any principal repayments shall be deposited  in
a  loan fund account; any interest earned by the regional corporation on
loans will be deposited in a  separate  interest  repayment  account.  A
regional corporation shall be authorized to provide financing assistance
to  eligible projects. Any interest earned from its loans may be used by
a regional corporation  for  the  cost  of  administering  the  programs
authorized by this section.
  (4)  Regional  corporations  shall be selected by the corporation from
among eligible  applicants  to  administer  a  SMALL  BUSINESS  regional
revolving loan program. An eligible applicant shall:
  (a) represent at least two entire contiguous counties;
  (b)  have  available  to it staff with sufficient expertise to analyze
applications for financial assistance, to  regularly  monitor  financial

S. 1253                             3

assistance  to clients, and have made arrangements to provide management
or technical assistance to clients;
  (c)  have an effective plan to market its services to small businesses
through such entities as chambers of commerce,  industry  trade  associ-
ations, banks, local development corporations, community based organiza-
tions and industrial development agencies; and
  (d) have established a loan committee composed of five or more persons
experienced  in  commercial  lending or in the operation of a for-profit
business and a staff person of the regional office of the department  of
economic development. Such loan committee shall review every application
to  the  regional  corporation for financial assistance pursuant to this
section, shall determine the feasibility of the transaction proposed  in
the  application  and shall recommend to the board of directors or other
governing body of the regional corporation such action as the  committee
deems appropriate.
  (5)  Applications  to  the  corporation for certification or recertif-
ication as a regional corporation shall:
  (a) describe the applicant corporation,  including  its  organization,
membership, loan committee, staff, and sources of other funds, if any;
  (b) identify the geographic region to be served;
  (c)  explain  the methods and criteria to be used in determining firms
eligible for financial  assistance  from  the  SMALL  BUSINESS  regional
revolving loan program;
  (d) describe the means for coordinating financial assistance available
from  the  SMALL BUSINESS regional revolving loan program with financial
assistance available from other public funding sources within the region
and how such program will be used  to  leverage  private  financing  for
projects;
  [(e)  at any time, the corporation may consider proposals to reconfig-
ure geographic areas served by regional corporations;] and
  [(f)] (E) contain such other  information  as  the  corporation  deems
appropriate.
  (6)  The  corporation  shall  select,  from among eligible applicants,
regional corporations to administer  revolving  loan  programs,  on  the
basis of:
  (a)  the  ability of the regional corporation to administer the finan-
cial assistance programs authorized under this section;
  (b) the extent of coordination with other publicly supported financial
assistance programs available  within  the  region  represented  by  the
regional corporation;
  (c) the degree of public and private support within the region for the
applicant regional corporation; and
  (d)  the  ability of the regional corporation to provide financial and
other assistance to businesses located in distressed  areas  within  the
region.
  (6-a)  The  corporation  shall,  every five years, recertify that each
regional corporation has complied with the terms and conditions of  this
section.  In the event a regional corporation is not recertified, or its
certification is withdrawn pursuant  to  subdivision  nineteen  of  this
section, then the corporation shall give written notice to such regional
corporation  which shall thereafter neither make new loans nor undertake
new obligations except upon written approval  of  the  corporation.  The
corporation  may  thereafter certify another regional corporation in the
manner provided in this section for the  selection  of  regional  corpo-
rations. Upon the certification of a successor regional corporation, all
remaining  loan  funds, records and accounts of the regional corporation

S. 1253                             4

not recertified shall be transferred to the corporation and the regional
corporation not recertified shall cease to  function  pursuant  to  this
section.  The  corporation  shall transfer returned funds to a successor
regional  corporation, or in the event no successor regional corporation
is formed, equally to other existing regional corporations.
  (7) A regional corporation certified by the corporation shall use  the
funds  received  from  the corporation, subject to the terms, conditions
and restrictions set forth in this section, to provide financial assist-
ance to eligible businesses  as  defined  in  subdivision  seventeen  of
section  three  of this act, for projects that demonstrate a substantial
likelihood of providing increases in net new permanent jobs or retaining
jobs in businesses that need such financial assistance to remain viable.
THE REGIONAL CORPORATION CERTIFIED BY THE CORPORATION SHALL ALSO USE THE
FUNDS RECEIVED FROM THE CORPORATION, SUBJECT TO THE  TERMS,  CONDITIONS,
AND RESTRICTIONS SET FORTH IN THIS SECTION, TO PROVIDE FINANCIAL ASSIST-
ANCE  TO MICRO-ENTERPRISES, DEFINED AS ANY COMMERCIAL BUSINESS WITH FIVE
OR FEWER EMPLOYEES, ONE OR MORE OF WHOM IS THE OWNER.
  (8) The decision to approve or reject  an  application  for  financial
assistance pursuant to the provisions of this section shall be made by a
majority of the directors of the regional corporation, and such decision
shall  be  final.  No  member  of the board or other governing body of a
regional corporation shall participate in a decision on a project appli-
cation when such member is a party to or has  a  financial  interest  in
such  project.  Any  member  who  cannot  participate in a decision on a
project application for such reason shall not be counted as a member  of
the board or other governing body for purposes of determining the number
of members required for a majority vote on such application.
  (9)  No  employee  or  officer  of any regional corporation shall be a
party to or have any financial interest in  any  project  that  receives
financial assistance pursuant to this section.
  (10)  A  regional corporation, in approving applications for financial
assistance, shall give priority to projects:
  (a) that will provide increases in net new permanent jobs;
  (b) located in economically distressed areas as defined by the  corpo-
ration or employing persons who live in such areas;
  (c)  of  minority  or  women-owned enterprises or enterprises owned by
dislocated workers, such workers as defined in the Workforce  Investment
Act (P.L. 105-220); and
  (d)  of  businesses  in the early stages of development that have been
denied access to credit.
  (11) The funds allocated to each regional corporation pursuant to this
section may be used to guarantee the repayment of a working capital loan
provided by a banking  organization  to  finance  an  eligible  project.
Guarantees  may  be  provided  for  up to ninety percent of the required
total project financing, provided that no more than one hundred thousand
dollars may be guaranteed for any project. Guarantees may  be  made  for
the  following types of financing: short and medium term loans for work-
ing capital, revolving lines  of  credit,  and  seasonal  inventory  and
accounts  receivable  loans.  Guarantees  may  be  made for up to ninety
percent of the required total financing up to a maximum of  one  hundred
fifty  thousand  dollars  for  interim financing where another lender or
guarantor will provide permanent financing  within  one  hundred  eighty
days.  In  no  event may a loan guarantee be for a term longer than five
years. Any loan made by a banking organization that is guaranteed pursu-
ant to this subdivision shall be secured by a security agreement,  chat-
tel paper, loan agreement, or such other instruments or documents deemed

S. 1253                             5

necessary  or convenient by the regional corporation to secure the loan.
Any guarantee made pursuant to this subdivision shall  be  backed  by  a
minimum  reserve  within the account established by each regional corpo-
ration  of at least twenty-five percent of the amount guaranteed that is
outstanding.
  (11-a) A regional corporation,  in  addition  to  receiving  funds  as
provided  in  this section, may also apply for and accept funds from any
other source for the purpose of furthering  its  goals  and  objectives.
Such  funds  may  be  used in the same manner as funds received from the
corporation to carry out the purposes of this section.
  (12) The funds of each regional corporation derived pursuant  to  this
section  may  be  used to provide loans for working capital for eligible
projects; provided that the amount of the loan does  not  exceed  ninety
percent  of  the  total  project  cost, or one hundred thousand dollars,
whichever is less. The interest rate and the terms on such  loans  shall
be  determined  by  the  regional corporation, but in no event shall the
interest rate be less than [five percent]  THE  FEDERAL  DISCOUNT  RATE.
The  term  of  any  loan shall not exceed five years. All loans shall be
secured by lien positions on collateral at the highest level of priority
that can accommodate the borrower's ability to raise sufficient debt and
equity capital for the project.
  (13) A regional corporation shall not provide any financial assistance
authorized by this section unless the following conditions are met:
  (a) the applicant has demonstrated that there is  little  prospect  of
obtaining  the  project financing requested from other public sources of
funding within the region, including local  revolving  loan  funds,  and
that  there  is  little prospect of obtaining adequate project financing
from private sources of capital, or in the case  of  a  loan  guarantee,
that there is little prospect of obtaining project financing without the
guarantee; except that in the case of local revolving loan funds, finan-
cial  assistance  from  the  SMALL BUSINESS regional revolving loan fund
account may be provided for a  project  in  conjunction  with  financial
assistance  from  a  local revolving loan fund, provided that assistance
from the SMALL BUSINESS regional revolving loan fund is no greater  than
that provided by the local revolving loan fund, and that a project qual-
ifying  for  financial  assistance available from a local revolving loan
fund is not denied such assistance;
  (b) the applicant has a  minimum  equity  interest  of  at  least  ten
percent in the business or project;
  (c) there is a reasonable prospect of repayment;
  (d)  the  project is located in the region represented by the regional
corporation;
  (e) the project will comply with any applicable environmental rules or
regulations;
  (f) the applicant has certified that it will not discriminate  against
any  employee or any applicant for employment because of race, religion,
color, national origin, sex, or age;
  (g) a staff member or a representative  of  the  regional  corporation
acting  in  an official capacity has personally visited the project site
and/or the applicant's place of business; and
  (h) financial commitments for the  project  have  been  obtained  from
other public and private sources.
  (14) Grants made by the corporation pursuant to this section shall not
be made available for:
  (a) projects that would result in the relocation of any business oper-
ation  from  one  municipality within the state to another, except under

S. 1253                             6

one of the following conditions:   (i) when  a  business  is  relocating
within  a  municipality  with a population of at least one million where
the governing body of such municipality  approves  such  relocation;  or
(ii) the regional corporation notifies each municipality from which such
business  operation  will  be  relocated and each municipality agrees to
such relocation;
  (b) projects of newspapers, broadcasting or other news media;  medical
facilities, libraries, community or civic centers; or public infrastruc-
ture improvements;
  (c)  refinancing any portion of the total project cost or other exist-
ing loans or debts of an applicant, except for  the  purpose  of  trans-
ferring  to  the  employees  or  to other local interests ownership of a
company that would otherwise  depart  from  or  cease  or  substantially
reduce  operations  in  the  state  AND  EXCEPT WHEN SUCH REFINANCING IS
REQUIRED TO ENABLE A VIABLE BUSINESS TO MAINTAIN  OR  EXPAND  ITS  OPER-
ATIONS IN THE STATE;
  (d)  providing  funds,  directly  or indirectly, for payment, distrib-
ution, or as a loan, to owners, partners or shareholders of  the  appli-
cant enterprise, except as ordinary income for services rendered; and
  (e) retail projects, except where the regional corporation finds there
will be an increase in net new permanent jobs.
  (15)  A  regional  corporation  may charge application, commitment and
loan guarantee fees pursuant to  a  schedule  of  fees  adopted  by  the
regional corporation and approved by the corporation.
  (16)  The  regional  corporations  shall submit annual reports for the
previous fiscal year to the corporation describing the financial assist-
ance provided  pursuant  to  this  section,  including:  the  number  of
projects  assisted;  the  amount  and  type  of  assistance  provided; a
description of the projects; the number of jobs created or retained; the
status of outstanding loans, guarantees, earnings and account  balances;
and such other information as the corporation may require.
  (17)  The  corporation shall, assisted by the commissioner of economic
development and in consultation with the department of economic develop-
ment, promulgate rules and regulations  in  accordance  with  the  state
administrative procedure act setting forth procedures to be followed by,
and  the  responsibilities and obligations of, regional corporations and
the corporation. Such rules and regulations shall be consistent with the
program plan required by subdivision nineteen of section one hundred  of
the economic development law.
  (18)  For  any  positions opened as a result of assistance provided in
this section, businesses so assisted shall first consider unemployed  or
low  income  individuals  eligible  to  participate  in  programs funded
through the  Workforce  Investment  Act  (P.L.  105-220)  who  shall  be
referred  to  the  business by local workforce investment boards created
pursuant to such act or by the job service division of the department of
labor.
  (19) The corporation shall annually conduct an audit of each  regional
corporation  to  ensure  conformity  of  all aspects of program adminis-
tration and of financial assistance transactions  with  the  substantive
and  procedural provisions of this section. In the event that the corpo-
ration finds instances of substantive noncompliance by a regional corpo-
ration with any of the provisions of this  section  and  such  instances
were,  or  should  have been, known to be in noncompliance, the regional
corporation shall return, within thirty days, upon demand by the  corpo-
ration, all uncommitted grant funds on hand and provide an accounting of
the loans currently outstanding.

S. 1253                             7

  The corporation may withdraw a regional corporation's certification:
  (a)  when a member of a board of directors or other governing body, an
officer or an employee of said regional corporation is party to  or  has
financial interests in loan projects;
  (b)  when  said regional corporation fails to comply with the require-
ments for project loans pursuant to this section; or
  (c) when a regional corporation makes no  loans  within  the  previous
fiscal  year and there is more than one hundred thousand dollars remain-
ing in its loan fund account.
  The corporation shall  transfer  funds  returned  from  a  decertified
regional  corporation  to a successor regional corporation, or, if there
be none, distribute such funds equally  among  other  existing  regional
corporations.  Outstanding loans and other obligations payable to such a
decertified regional corporation shall  be  assigned  to  its  successor
regional  corporation,  or  to the corporation or an agent designated by
the corporation upon such terms and conditions as the corporation  shall
determine.
  (20)  [Reporting.] The corporation shall, on or before October 1, 1988
and on or before each October first thereafter, submit a report  to  the
governor  and  the  legislature on the operations and accomplishments of
the SMALL BUSINESS regional revolving loan program.  Such  report  shall
include  a summary of the information contained in the reports submitted
pursuant to subdivision sixteen of this section and of  the  results  of
the audits performed by the corporation pursuant to subdivision nineteen
of  this  section,  and shall set forth the status of the SMALL BUSINESS
regional revolving loan program for the previous fiscal year,  including
grants  to  the  regional corporations, earnings and account balances as
reported to the corporation. The report to be submitted  on  October  1,
2005  and  on  or  before each October first thereafter shall be consol-
idated with the annual program report of the corporation required  under
the  provisions  of  subdivision  (b)  of section thirty of this act, as
amended.
  (21) [Evaluation.] (a) The corporation shall submit to the director of
the division of the  budget,  the  chairperson  of  the  senate  finance
committee,  and the chairperson of the assembly ways and means committee
an evaluation of this program prepared by an entity independent  of  the
corporation. Such evaluation shall be submitted by September 1, 2005 and
by September first every four years thereafter.
  (b)  Between  evaluation due dates, the corporation shall maintain the
necessary records and data required to satisfy such evaluation  require-
ments  and to satisfy information requests received from the director of
the budget, the chairperson of the  senate  finance  committee  and  the
chairperson of the assembly ways and means committee between such evalu-
ation due dates.
  (22)  The  corporation  shall recertify existing regional corporations
or, in the event a regional corporation's certification has  been  with-
drawn, seek successor corporations among eligible applicants after April
first, two thousand two.
  S  4.  Paragraph  (f) of subdivision 2 of section 16-c of section 1 of
chapter 174 of the laws of 1968, constituting the New York  state  urban
development  corporation  act,  as  added  by chapter 169 of the laws of
1994, is amended to read as follows:
  (f) The provisions of subdivisions eight, nine, and  fourteen  through
nineteen  of section sixteen-a of this act pertaining to the SMALL BUSI-
NESS regional revolving [loans] LOAN trust fund shall also be applicable
to the minority and women revolving  loan  trust  fund,  provided  that:

S. 1253                             8

where the term "regional corporation" appears therein it shall be inter-
preted  to  mean  an  entity selected to administer a minority and women
revolving loan trust fund account, and "SMALL BUSINESS regional  revolv-
ing  [loans]  LOAN trust fund" shall mean a minority and women revolving
loan trust fund, and where the term "this section"  appears  therein  it
shall mean this section sixteen-c.
  S  5.  Paragraph  (h) of subdivision 1 of section 16-e of section 1 of
chapter 174 of the laws of 1968, constituting the New York  state  urban
development  corporation  act,  as  added  by chapter 169 of the laws of
1994, is amended to read as follows:
  (h) "Revolving loan fund account grants" shall include: (i) grants  to
provide the local match for federally funded community-based loan funds;
(ii)  grants  to  capitalize  and  recapitalize  SMALL BUSINESS regional
revolving loan trust fund accounts pursuant to section sixteen-a of this
act; and (iii) grants to recapitalize minority and women revolving  loan
trust  fund  accounts  established pursuant to section sixteen-c of this
act.
  S 6. Subdivision 13 of section 16-e of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban  development  corpo-
ration  act,  as added by chapter 169 of the laws of 1994, is amended to
read as follows:
  (13) Regional loan fund account grants. Assistance from  this  program
may  be  provided  for  grants of up to five hundred thousand dollars to
capitalize, and up to two  hundred  thousand  dollars  to  recapitalize,
SMALL  BUSINESS  regional revolving loan trust fund accounts established
pursuant to section sixteen-a of this act and up to two hundred thousand
dollars to recapitalize minority and women  revolving  loan  trust  fund
accounts  established  pursuant to section sixteen-c of this act; and up
to two hundred thousand dollars to provide the local match for appropri-
ately federally-financed community-based loan funds.
  S 7. The opening paragraph of paragraph  (b-1)  of  subdivision  6  of
section 16-l of section 1 of chapter 174 of the laws of 1968, constitut-
ing  the  New  York state urban development corporation act, as added by
chapter 603 of the laws of 2003, is amended to read as follows:
  The corporation is authorized, within available appropriations in  the
empire  state  economic development fund established pursuant to section
16-m of this act, to provide financial assistance in the form of  loans,
loan  guarantees,  working capital loans, and interest subsidy grants to
subsidize loans from federally chartered instrumentalities and state and
private lending institutions, including agricultural cooperative  corpo-
rations,  provided  that  such  assistance to state lending institutions
shall not exceed one-third of the total project  cost  or  four  hundred
thousand dollars, whichever is less, to agricultural enterprises seeking
to  implement  the  projects  listed in this paragraph.   Funds for such
loans, grants, subsidies, or any other assistance specified pursuant  to
this  act  may come from funds derived from the financial assistance for
small and medium-sized business assistance projects established pursuant
to section 9-a of this act, the SMALL BUSINESS regional  revolving  loan
trust  fund  established  pursuant  to  section  16-a  of  this act, the
regional economic development partnership program  established  pursuant
to  section 16-e of this act, the empire state economic development fund
established pursuant to section 16-m of this  act,  or  from  any  other
funds, programs, or projects administered by the corporation or by other
state appropriations.
  S 8. This act shall take effect immediately.

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