Assembly Bill A9075

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

                                  9075

                          I N  A S S E M B L Y

                            January 25, 2016
                               ___________

Introduced  by  M.  of  A.  DenDEKKER  --  read once and referred to the
  Committee on Small Business

AN ACT to amend the New York state urban development corporation act, in
  relation to requiring the small business revolving loan fund to target
  and market to veteran-owned enterprises and service disabled  veteran-
  owned enterprises

  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, VETERAN-OWNED ENTERPRISES  AS  SET
FORTH  IN 15 U.S.C. SECTION 632(Q)(3), AS AMENDED FROM TIME TO TIME, AND
SERVICE DISABLED VETERAN-OWNED  ENTERPRISES  AS  SET  FORTH  IN  ARTICLE
SEVENTEEN-B  OF  THE  EXECUTIVE LAW, 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 categories of loans to small
businesses: a micro loan that shall have a principal amount that is less
than twenty-five thousand dollars and a regular loan that shall  have  a
principal  amount  not  less than twenty-five thousand dollars. Prior to
receiving program funds, the lending organization must  certify  to  the
corporation  that  such  loan  complies  with this section and rules and
regulations promulgated for the program and that the  lending  organiza-
tion 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

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

                                                           LBD13268-01-5

A. 9075                             2

amount of such loan. The program funds amount used by the lending organ-
ization  to  fund a program applicant loan shall not be greater than one
hundred and twenty-five thousand dollars.    Minority-  and  women-owned
business  enterprises,  VETERAN-OWNED  ENTERPRISES  AS  SET  FORTH IN 15
U.S.C. SECTION 632(Q)(3), AS AMENDED FROM  TIME  TO  TIME,  AND  SERVICE
DISABLED  VETERAN-OWNED  ENTERPRISES AS SET FORTH IN ARTICLE SEVENTEEN-B
OF THE EXECUTIVE LAW, 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.