Senate Bill S4230

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4230
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 6, 2017
                                ___________
 
 Introduced  by  Sen. ADDABBO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Veterans, Homeland Securi-
   ty and Military Affairs
 
 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 chapter 254  of  the  laws  of  2016,  is
 amended to read as follows:
   3.  Program  loans  to  small businesses and micro-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  ENTER-
 PRISES  AS  SET  FORTH  IN ARTICLE SEVENTEEN-B OF THE EXECUTIVE LAW, and
 other small businesses and micro-businesses that are  having  difficulty
 accessing  traditional credit markets. Program loans to small businesses
 and micro-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 refi-
 nancing of debt obligations. There shall be two categories of  loans  to
 small  businesses  and  micro-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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09765-01-7

 S. 4230                             2
 
 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, VETERAN-OWNED ENTER-
 PRISES 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 or
 micro-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.
   § 2. This act shall take effect immediately.