senate Bill S546

Provides that microbusinesses in New York are eligible for small business revolving loans and the linked deposit interest rate reductions

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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 COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • 08 / Jan / 2014
    • REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS

Summary

Provides that microbusinesses in New York are eligible for small business revolving loans and the linked deposit interest rate reductions.

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Bill Details

Versions:
S546
Legislative Cycle:
2013-2014
Current Committee:
Senate Commerce, Economic Development And Small Business
Law Section:
Economic Development Law
Laws Affected:
Add §131-a, Ec Dev L; amd §213, St Fin L; amd §16-t, UDC Act
Versions Introduced in 2011-2012 Legislative Cycle:
S7556

Sponsor Memo

BILL NUMBER:S546

TITLE OF BILL:
An act
to amend the economic development law, the state finance law and the New
York state urban development corporation act, in relation to making
small business loans available to microbusinesses

PURPOSE:
To provide that microbusinesses in New York are eligible for small
business revolving loans and the linked deposit interest rate
reductions.

SUMMARY OF PROVISIONS:
Section 1 adds a new section 131-a to the economic development law to
include the definition of a microbusiness as one that is resident in
New York state, independently owned and operated, not dominant in its
field, and employs under five persons.

Section 2 amends paragraph f subdivision 11 of section 213 of the
state finance law, as added by chapter 705 of the laws of 1993, by
adding a new paragraph g stating that a microbusiness (that has been
in operation for 5 years and that is located in an empire zone,
empowerment zone, a highly distressed area of renewal community) is
an eligible business for the purpose of the excelsior linked deposit
program.

Section 3 amends section 16-t of section 1 of chapter 174 of the laws
of 1968 by adding a new subdivision 16 to provide that $5 million in
program funds be available for micro-loans to microbusinesses, which
will be eligible to apply in the same manner as other small businesses.

JUSTIFICATION:
Microbusinesses have been estimated to constitute around 90% of all
businesses within New York State by the Association for Enterprise
Opportunity. A microbusiness is a business that has 5 or fewer
employees.
Given their nature, it is often difficult for microbusiness owners to
access capital through lending institutions. A microbusiness can
consist of a wide variety of businesses that run from 'mom and pop'
shops to start-up tech companies. These businesses are both the
backbone and the future of our economy.

Given their prevalence and importance, this bill adds the definition
of microbusinesses to the law in order to allow for their inclusion
in successful state programs, including the linked deposit program
and small business revolving loan fund.

PRIOR LEGISLATIVE HISTORY:
2012: S.7556 Referred to Commerce, Economic Development, and
Small Business

FISCAL IMPLICATIONS:
No additional cost to the state is estimated.

EFFECTIVE DATE:


This act shall take effect immediately.

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

                                   546

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Commerce, Economic  Devel-
  opment and Small Business

AN  ACT to amend the economic development law, the state finance law and
  the New York state urban development corporation act, in  relation  to
  making small business loans available to microbusinesses

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

  Section 1. The economic development law is amended  by  adding  a  new
section 131-a to read as follows:
  S 131-A. DEFINITION OF A MICROBUSINESS. FOR THE PURPOSES OF THIS CHAP-
TER,  A  MICROBUSINESS SHALL BE DEEMED TO BE A BUSINESS THAT IS RESIDENT
IN THIS STATE, INDEPENDENTLY OWNED AND OPERATED,  NOT  DOMINANT  IN  ITS
FIELD AND EMPLOYS UNDER FIVE PERSONS.
  S  2.  Paragraph  (f)  of  subdivision  11 of section 213 of the state
finance law, as added by chapter 705 of the laws of 1993, is amended and
a new paragraph (g) is added to read as follows:
  (f) any service business that is independently owned and operated,  is
not  dominant  in  its  field, employs one hundred or fewer persons on a
full-time basis within the state, and is seeking financing  through  the
program  for  a project that will result in the retention or creation of
permanent private sector jobs within the state, other  than  a  business
that  sells a service rendered at a facility personally by an individual
for another individual, directly, without the intervention  of  a  third
party,  or  a  professional  service  business  such  as  health, legal,
accounting, engineering, or architectural services[.]; OR
  (G) A MICROBUSINESS, AS DEFINED BY SECTION ONE HUNDRED THIRTY-ONE-A OF
THE ECONOMIC DEVELOPMENT LAW, THAT HAS BEEN IN OPERATION FOR FIVE  YEARS
AND  THAT  IS  LOCATED  IN  AN  EMPIRE  ZONE, EMPOWERMENT ZONE, A HIGHLY
DISTRESSED AREA OR RENEWAL COMMUNITY.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04073-01-3

S. 546                              2

  S 3. Section 16-t of section 1 of chapter 174 of  the  laws  of  1968,
constituting  the urban development corporation act is amended by adding
a new subdivision 16 to read as follows:
  16.  NOTWITHSTANDING  ANYTHING  TO  THE  CONTRARY IN THIS SECTION, THE
CORPORATION SHALL PROVIDE AT LEAST FIVE MILLION DOLLARS IN PROGRAM FUNDS
PURSUANT TO THIS SECTION TO LENDING ORGANIZATIONS  FOR  THE  PURPOSE  OF
MAKING MICRO-LOANS TO MICROBUSINESSES, AS DEFINED BY SECTION ONE HUNDRED
THIRTY-ONE-A  OF  THE ECONOMIC DEVELOPMENT LAW. MICROBUSINESSES SHALL BE
ELIGIBLE TO APPLY FOR FUNDING IN THE SAME MANNER AS  OTHER  SMALL  BUSI-
NESSES PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
  S 4. This act shall take effect immediately.

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