senate Bill S4878A

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

download pdf

Sponsor

Bill Status


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

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.

do you support this bill?

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: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.

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

                                 4878--A

                       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  --  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,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01898-04-4

S. 4878--A                          2

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.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.