senate Bill S4878

Amended

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

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Sponsor

Bill Status


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

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

Summary

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.

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Bill Details

Versions:
S4878
S4878A
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Amd ยง16-t, UDC Act
Versions Introduced in 2011-2012 Legislative Cycle:
S7231

Sponsor Memo

BILL NUMBER:S4878

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.

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

                                  4878

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             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

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.  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 THE CORPORATION SHALL PROVIDE THAT NOT LESS THAN
FIFTEEN PERCENT OF ANY REMAINING PRINCIPAL OR FURTHER  APPROPRIATION  OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01898-02-3

S. 4878                             2

THE  FUND ON OR AFTER JULY FIRST, TWO THOUSAND THIRTEEN IS SET ASIDE FOR
MICRO LOANS.  FURTHERMORE THE CORPORATION SHALL PROVIDE  THAT  NOT  LESS
THAN FIVE PERCENT OF ANY REMAINING PRINCIPAL OR FURTHER APPROPRIATION OF
THE  FUND ON OR AFTER JULY FIRST, TWO THOUSAND THIRTEEN IS SET ASIDE FOR
MICRO SEED LOANS. IN YEARS AFTER JULY FIRST, TWO THOUSAND THIRTEEN, 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 THOU-
SAND THIRTEEN, WHEN THERE IS NO REMAINING PRINCIPAL OR THERE IS NO ADDI-
TIONAL APPROPRIATION, NOT LESS THAN FIVE PERCENT OF ANY GENERATED REVEN-
UE  SHALL  BE SET ASIDE FOR MICRO SEED LOANS. Prior to receiving program
funds, the lending organization must certify  to  the  corporation  that
such  loan  complies with this section and rules and regulations promul-
gated 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 regulations 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.
  S 2. This act shall take effect immediately.

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