senate Bill S4878A

2013-2014 Legislative Session

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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Archive: Last Bill Status - Passed Senate


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 28, 2014 referred to small business
delivered to assembly
passed senate
May 14, 2014 advanced to third reading
May 13, 2014 2nd report cal.
May 12, 2014 1st report cal.604
Mar 28, 2014 print number 4878a
amend and recommit to corporations, authorities and commissions
Jan 08, 2014 referred to corporations, authorities and commissions
Apr 29, 2013 referred to corporations, authorities and commissions

Votes

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May 12, 2014 - Corporations, Authorities and Commissions committee Vote

S4878A
5
0
committee
5
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Corporations, Authorities and Commissions Committee Vote: May 12, 2014

aye wr (1)

Bill Amendments

Original
A (Active)
Original
A (Active)

S4878 - Bill Details

Current Committee:
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Amd §16-t, UDC Act
Versions Introduced in 2011-2012 Legislative Session:
S7231

S4878 - Bill Texts

view 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.

view 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.

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                    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.

Co-Sponsors

S4878A (ACTIVE) - Bill Details

Current Committee:
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Amd §16-t, UDC Act
Versions Introduced in 2011-2012 Legislative Session:
S7231

S4878A (ACTIVE) - Bill Texts

view 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.

view 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 full text
download pdf
                    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.

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