Senate Bill S7556

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

                                  7556

                            I N  S E N A T E

                              June 4, 2012
                               ___________

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.
  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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD16097-01-2
              

S. 7556                             2

  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.