S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5642--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              April 24, 2017
                                ___________
 
 Introduced  by  Sens.  CROCI,  BONACIC, LARKIN -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Corpo-
   rations,  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 and
   the  economic development law, in relation to establishing a certified
   service-disabled veteran-owned  business  enterprise  development  and
   lending program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 1 of chapter 174 of the laws of  1968  constituting
 the  New  York  state  urban  development  corporation act is amended by
 adding a new section 16-c-1 to read as follows:
   § 16-C-1. CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE
 DEVELOPMENT AND LENDING PROGRAM.  (1) CERTIFIED SERVICE-DISABLED  VETER-
 AN-OWNED BUSINESS ENTERPRISE DEVELOPMENT AND LENDING PROGRAM.  (A) THERE
 IS  HEREBY  CREATED  A CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS
 ENTERPRISE DEVELOPMENT AND LENDING PROGRAM FOR THE PURPOSE OF  PROVIDING
 FINANCIAL  AND TECHNICAL ASSISTANCE TO CERTIFIED SERVICE-DISABLED VETER-
 AN-OWNED BUSINESS ENTERPRISES.
   (B) FOR THE PURPOSES OF THIS SECTION  THE  FOLLOWING  WORDS  OR  TERMS
 SHALL MEAN AS FOLLOWS:
   (I)  "CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED  BUSINESS ENTERPRISE"
 SHALL MEAN A BUSINESS ENTERPRISE, CERTIFIED PURSUANT TO  ARTICLE  SEVEN-
 TEEN-B OF THE EXECUTIVE LAW.
   (II) "INCUBATOR" SHALL MEAN A FACILITY PROVIDING LOW-COST SPACE, TECH-
 NICAL  ASSISTANCE  AND  SUPPORT SERVICES, INCLUDING, BUT NOT LIMITED TO,
 CENTRAL SERVICES  SHARED  BY  TENANTS  OF  THE  FACILITY,  TO  CERTIFIED
 SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10831-03-8

 S. 5642--A                          2
 
   (C) ASSISTANCE SHALL NOT BE PROVIDED UNDER THIS SECTION FOR:
   (I)  THE  PURCHASE  OR REHABILITATION OF REAL PROPERTY FOR SPECULATIVE
 PURPOSES;
   (II) PAYMENT OF ANY TAX OR EMPLOYEE BENEFIT ARREARAGE;
   (III)   RESIDENTIAL   CONSTRUCTION,    RENOVATION    OR    DEVELOPMENT
 CONSTRUCTION, EXCEPT FOR ASSISTANCE TO CERTIFIED SERVICE-DISABLED VETER-
 AN-OWNED  BUSINESS ENTERPRISE CONTRACTORS UNDER SUBDIVISION FOUR OF THIS
 SECTION;
   (IV) EDUCATIONAL INSTITUTIONS AND PROPRIETARY EDUCATION FIRMS,  EXCEPT
 LICENSED CHILD CARE FACILITIES;
   (V) HOSPITALS OR RESIDENTIAL HEALTH CARE FACILITIES;
   (VI) OVERNIGHT LODGING FACILITIES;
   (VII)  REFINANCING  OF  DEBT  OR  EQUITY  INVESTED IN AN ENTERPRISE OR
 PROJECT.
   (D) THE CORPORATION IS AUTHORIZED TO:
   (I) ESTABLISH PROGRAMS IN CONJUNCTION WITH LOCALLY AND COMMUNITY-BASED
 ENTITIES TO DECENTRALIZE LENDING FOR SMALL LOANS AND LOANS TO  START  UP
 CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES;
   (II)  ESTABLISH A COMPREHENSIVE PROGRAM FOR CERTIFIED SERVICE-DISABLED
 VETERAN-OWNED BUSINESS ENTERPRISES, WHICH MAY INCLUDE ASSISTANCE THROUGH
 LOANS, BONDING ASSISTANCE AND TECHNICAL ASSISTANCE;
   (III) ESTABLISH A PROGRAM TO PROVIDE LOANS  TO  ESTABLISHED  CERTIFIED
 SERVICE-DISABLED  VETERAN-OWNED  BUSINESS ENTERPRISES INCLUDING LOANS TO
 SUCH BUSINESSES SEEKING TO ACQUIRE OR EXPAND A FRANCHISE;
   (IV) PROVIDE LOAN GUARANTEES TO FINANCIAL INSTITUTIONS AND MAKE LINKED
 DEPOSITS INTO FEDERALLY  AND  STATE  CHARTERED  CREDIT  UNIONS  FOR  THE
 PURPOSE  OF  ENCOURAGING PRIVATE FINANCIAL INSTITUTIONS TO MAKE LOANS TO
 CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES;
   (V) ESTABLISH A PROGRAM TO CREATE INCUBATORS TO ASSIST SMALL AND  HIGH
 RISK  CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED BUSINESS ENTERPRISES TO
 GROW AND PROSPER;
   (VI) PROMOTE EQUITY INVESTMENT IN CERTIFIED SERVICE-DISABLED  VETERAN-
 OWNED BUSINESS ENTERPRISES;
   (VII)  ESTABLISH A COMPREHENSIVE TECHNICAL ASSISTANCE PROGRAM IN COOP-
 ERATION WITH THE DEPARTMENT OF ECONOMIC DEVELOPMENT TO ASSIST  CERTIFIED
 SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES; AND
   (VIII) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ESTABLISH
 A  CERTIFIED  SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE INVEST-
 MENT FUND TO PROVIDE CRITICAL FINANCIAL SUPPORT TO FOSTER  THE  DEVELOP-
 MENT  OF  NEW AND EMERGING IDEAS AND PRODUCTS OF CERTIFIED SERVICE-DISA-
 BLED VETERAN-OWNED BUSINESS  ENTERPRISES  AS  WELL  AS  TO  PROMOTE  THE
 LONG-TERM  FINANCIAL  PERFORMANCE AND SUCCESS OF EARLY STAGE ENTERPRISES
 THAT ARE CERTIFIED SERVICE-DISABLED  VETERAN-OWNED  BUSINESS  ENTERPRISE
 START-UPS. THE SELECTION OF AN ELIGIBLE APPLICANT AND BENEFICIARY COMPA-
 NIES  FOR  THE  CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTER-
 PRISE INVESTMENT FUND SHALL  BE  SELECTED  BY  THE  PROCESS  ESTABLISHED
 PURSUANT  TO  SUBDIVISIONS  TWO, THREE, AND FOUR OF SECTION SIXTEEN-U OF
 THIS ACT.  CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES
 WHO PARTICIPATE IN SUCH CERTIFIED SERVICE-DISABLED  VETERAN-OWNED  BUSI-
 NESS  ENTERPRISE  INVESTMENT  FUND  UNDER  THIS SUBDIVISION SHALL NOT BE
 PRECLUDED FROM QUALIFYING FOR ANY OTHER ASSISTANCE, GRANT OR  LOAN  MADE
 AVAILABLE FROM THE STATE.
   (2)   CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED  BUSINESS  ENTERPRISE
 REVOLVING LOAN TRUST FUND. FOR THE PURPOSE OF ESTABLISHING  PROGRAMS  IN
 CONJUNCTION  WITH  LOCALLY  AND COMMUNITY BASED ENTITIES TO DECENTRALIZE
 LENDING FOR SMALL LOANS AND LOANS TO START UP CERTIFIED SERVICE-DISABLED

 S. 5642--A                          3
 
 VETERAN-OWNED BUSINESS  ENTERPRISES,  THE  CORPORATION  SHALL  ESTABLISH
 CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED BUSINESS ENTERPRISE REVOLVING
 LOAN TRUST FUND ACCOUNTS AND RELATED ADMINISTRATIVE EXPENSES TRUST  FUND
 ACCOUNTS.
   (A)  EACH CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE
 REVOLVING LOAN TRUST FUND ACCOUNT SHALL BE ADMINISTERED BY ONE  OR  MORE
 OF  THE  FOLLOWING  TYPES OF ENTITIES THAT PROVIDE SERVICES TO COMMUNITY
 BUSINESSES AND HAVE AS ONE OF THEIR PRIMARY PURPOSES  THE  PROVISION  OF
 SERVICES  AND  ASSISTANCE  TO  CERTIFIED  SERVICE-DISABLED VETERAN-OWNED
 BUSINESS ENTERPRISES:
   (I) EMPIRE ZONE CAPITAL CORPORATIONS ESTABLISHED PURSUANT  TO  SECTION
 NINE HUNDRED SIXTY-FOUR OF THE GENERAL MUNICIPAL LAW;
   (II)  COMMUNITY-BASED  LOCAL  DEVELOPMENT  CORPORATIONS  OR INDUSTRIAL
 DEVELOPMENT AGENCIES THAT SERVE A MUNICIPALITY IN WHICH AN  EMPIRE  ZONE
 HAS  BEEN  ESTABLISHED  PURSUANT  TO  ARTICLE  EIGHTEEN-B OF THE GENERAL
 MUNICIPAL LAW AND HAVE AS THEIR PRIMARY PURPOSE ASSISTANCE TO  CERTIFIED
 SERVICE-DISABLED  VETERAN-OWNED  BUSINESS  ENTERPRISES  LOCATED OR TO BE
 LOCATED IN SUCH EMPIRE ZONE; OR
   (III) LOCAL AND COMMUNITY DEVELOPMENT CORPORATIONS, INDUSTRIAL  DEVEL-
 OPMENT AGENCIES, OR OTHER NOT-FOR-PROFIT ENTITIES, REPRESENTATIVE OF THE
 COMMUNITY.
   (B)  TO  BE ELIGIBLE TO ADMINISTER A CERTIFIED SERVICE-DISABLED VETER-
 AN-OWNED BUSINESS ENTERPRISE REVOLVING  LOAN  TRUST  FUND  ACCOUNT,  THE
 ENTITY MUST ALSO:
   (I)  HAVE  STAFF WITH SUFFICIENT EXPERTISE TO ANALYZE APPLICATIONS FOR
 FINANCIAL ASSISTANCE,  TO  REGULARLY  MONITOR  FINANCIAL  ASSISTANCE  TO
 CLIENTS,  AND  TO PROVIDE MANAGEMENT OR TECHNICAL ASSISTANCE TO CLIENTS;
 AND
   (II) HAVE ESTABLISHED A LOAN COMMITTEE COMPOSED OF SIX OR MORE PERSONS
 EXPERIENCED IN BUSINESS MANAGEMENT, COMMERCIAL LENDING OR IN THE  OPERA-
 TION  OF A FOR-PROFIT BUSINESS, AT LEAST ONE-HALF OF WHOM SHALL BE EXPE-
 RIENCED IN COMMERCIAL LENDING, AND AT LEAST ONE-QUARTER OF WHOM SHALL BE
 SERVICE-DISABLED VETERANS AS DEFINED IN ARTICLE SEVENTEEN-B OF THE EXEC-
 UTIVE LAW. SUCH LOAN COMMITTEE SHALL REVIEW EVERY APPLICATION, DETERMINE
 THE FEASIBILITY OF THE PROPOSED PROJECT AND THE LIKELIHOOD OF  REPAYMENT
 OF  THE REQUESTED FINANCING AND SHALL RECOMMEND TO THE GOVERNING BODY OF
 THE ENTITY SUCH ACTION ON THE APPLICATION AS THE  LOAN  COMMITTEE  DEEMS
 APPROPRIATE.  THE CORPORATION SHALL IDENTIFY ENTITIES ELIGIBLE TO ADMIN-
 ISTER THE CERTIFIED SERVICE-DISABLED VETERAN-OWNED  BUSINESS  ENTERPRISE
 REVOLVING  LOAN  TRUST  FUND  ACCOUNTS  THROUGH  A COMPETITIVE STATEWIDE
 REQUEST FOR PROPOSAL PROCESS.
   (C) ANY ENTITY SELECTED TO  ADMINISTER  A  CERTIFIED  SERVICE-DISABLED
 VETERAN-OWNED  BUSINESS  ENTERPRISE  REVOLVING  LOAN  TRUST FUND ACCOUNT
 SHALL BE ELIGIBLE TO DRAW FUNDS FROM THE ACCOUNT AS  NEEDED  TO  PROVIDE
 THE  FOLLOWING  TYPES OF FINANCIAL ASSISTANCE TO CERTIFIED SERVICE-DISA-
 BLED  VETERAN-OWNED  BUSINESS  ENTERPRISES  UPON  CERTIFICATION  TO  AND
 ACCEPTANCE  BY  THE CORPORATION THAT SUCH ASSISTANCE COMPLIES WITH RULES
 AND REGULATIONS PROMULGATED BY THE CORPORATION:
   (I) WORKING CAPITAL LOANS, PROVIDED THAT THE AMOUNT OF THE  LOAN  DOES
 NOT  EXCEED  THIRTY-FIVE  THOUSAND DOLLARS AND THE TERM OF THE LOAN DOES
 NOT EXCEED FIVE YEARS; AND
   (II) LOANS FOR THE ACQUISITION AND/OR IMPROVEMENT OF REAL PROPERTY AND
 FOR THE ACQUISITION OF MACHINERY AND EQUIPMENT PROVIDED THAT THE  AMOUNT
 OF  THE  LOAN DOES NOT EXCEED FIFTY THOUSAND DOLLARS AND THE TERM OF THE
 LOAN DOES NOT EXCEED THE USEFUL LIFE OF THE EQUIPMENT OR PROPERTY.

 S. 5642--A                          4
 
   (D) (I) NOTWITHSTANDING ANY PROVISION OF  LAW  TO  THE  CONTRARY,  THE
 CORPORATION  MAY ESTABLISH AN ADMINISTRATIVE EXPENSES TRUST FUND ACCOUNT
 FOR THE BENEFIT OF  EACH  ENTITY  SELECTED  TO  ADMINISTER  A  CERTIFIED
 SERVICE-DISABLED  VETERAN-OWNED BUSINESS ENTERPRISE REVOLVING LOAN TRUST
 FUND ACCOUNT. THE INITIAL DEPOSIT OF FUNDS TO AN ADMINISTRATIVE EXPENSES
 TRUST  FUND ACCOUNT SHALL BE AN AMOUNT DETERMINED BY THE CORPORATION BUT
 SHALL NOT EXCEED TWENTY-FIVE THOUSAND DOLLARS.
   (II) AN ENTITY SELECTED TO  ADMINISTER  A  CERTIFIED  SERVICE-DISABLED
 VETERAN-OWNED  BUSINESS ENTERPRISE REVOLVING LOAN TRUST FUND ACCOUNT MAY
 USE THE FUNDS IN THE ADMINISTRATIVE  EXPENSES  TRUST  FUND  ACCOUNT  FOR
 COSTS INCURRED BY IT IN THE START-UP AND ADMINISTRATION OF THE FINANCIAL
 ASSISTANCE PROGRAM AUTHORIZED PURSUANT TO THIS SUBDIVISION.
   (III)  THE CORPORATION SHALL DEPOSIT INTO EACH ADMINISTRATIVE EXPENSES
 TRUST FUND ACCOUNT:
   (A) ALL INCOME EARNED FROM THE MONEYS ON DEPOSIT IN THE  CORRESPONDING
 CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED BUSINESS ENTERPRISE REVOLVING
 LOAN TRUST FUND ACCOUNT DURING THE FIRST YEAR OF THE  ENTITY'S  ADMINIS-
 TRATION OF SAID ACCOUNT; AND
   (B)  BEGINNING  WITH  ITS  SECOND  YEAR  IN  ADMINISTERING A CERTIFIED
 SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE REVOLVING LOAN  TRUST
 FUND  ACCOUNT, SAID AMOUNTS MAY BE USED FOR COSTS INCURRED BY THE ENTITY
 IN ADMINISTERING THE CERTIFIED SERVICE-DISABLED  VETERAN-OWNED  BUSINESS
 ENTERPRISE REVOLVING LOAN TRUST FUND ACCOUNT; AND
   (C) REPAYMENTS OF INTEREST ON LOANS MADE FROM THE CORRESPONDING CERTI-
 FIED  SERVICE-DISABLED  VETERAN-OWNED BUSINESS ENTERPRISE REVOLVING LOAN
 TRUST FUND ACCOUNT.
   (IV) FUNDS FROM THE ADMINISTRATIVE EXPENSES TRUST FUND ACCOUNT MAY  BE
 USED  FOR  COSTS  INCURRED AT ANY TIME BY AN ADMINISTERING ENTITY IN ITS
 ADMINISTRATION OF A CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED  BUSINESS
 ENTERPRISE REVOLVING LOAN TRUST FUND ACCOUNT PURSUANT TO THIS SECTION.
   (V)  FUNDS  DEPOSITED IN AN ADMINISTRATIVE EXPENSES TRUST FUND ACCOUNT
 SHALL BE DISBURSED BY THE CORPORATION TO THE ENTITY THAT ADMINISTERS THE
 CORRESPONDING CERTIFIED SERVICE-DISABLED VETERAN-OWNED  BUSINESS  ENTER-
 PRISE REVOLVING LOAN TRUST FUND ACCOUNT ON A PERIODIC BASIS AND SHALL BE
 EXPENDED  BY  THE  ENTITY  IN  ACCORDANCE  WITH AN ANNUAL BUDGET AND ANY
 UPDATES OF SAME, APPROVED BY THE CORPORATION.
   (E) ANY ENTITY SELECTED TO  ADMINISTER  A  CERTIFIED  SERVICE-DISABLED
 VETERAN-OWNED  BUSINESS  ENTERPRISE  REVOLVING  LOAN  TRUST FUND ACCOUNT
 SHALL PAY TO THE CORPORATION FOR  DEPOSIT  ANY  REPAYMENTS  RECEIVED  IN
 CONNECTION WITH FINANCIAL ASSISTANCE PROVIDED FROM ITS ACCOUNT. PAYMENTS
 CONSISTING  OF  THE REPAYMENT OF THE PRINCIPAL AMOUNT OF A LOAN SHALL BE
 DEPOSITED BY THE CORPORATION INTO THE CERTIFIED SERVICE-DISABLED  VETER-
 AN-OWNED  BUSINESS  ENTERPRISE  REVOLVING  LOAN  TRUST FUND ACCOUNT FROM
 WHICH THE LOAN WAS MADE. THE INTEREST EARNED BY THE CORPORATION FROM THE
 INVESTMENT OF MONEYS IN EACH  CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED
 BUSINESS  ENTERPRISE  REVOLVING LOAN TRUST FUND ACCOUNT DURING AND AFTER
 THE SECOND YEAR OF A SELECTED ENTITY'S ADMINISTRATION  OF  SAID  ACCOUNT
 SHALL  BE  DEPOSITED BY THE CORPORATION INTO THE CORRESPONDING CERTIFIED
 SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE REVOLVING LOAN  TRUST
 FUND  ACCOUNT  AND USED TO PROVIDE THE FINANCIAL ASSISTANCE TO CERTIFIED
 SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES AS AUTHORIZED PURSU-
 ANT TO THIS SECTION.
   (F) THE PROVISIONS OF SUBDIVISIONS  EIGHT,  NINE,  FOURTEEN,  FIFTEEN,
 SIXTEEN,  SEVENTEEN,  EIGHTEEN AND NINETEEN OF SECTION SIXTEEN-A OF THIS
 ACT PERTAINING TO THE REGIONAL REVOLVING LOAN TRUST FUND SHALL  ALSO  BE
 APPLICABLE  TO  THE  CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED BUSINESS

 S. 5642--A                          5
 
 ENTERPRISE REVOLVING LOAN TRUST FUND,  PROVIDED  THAT:  WHERE  THE  TERM
 "REGIONAL  CORPORATION"  APPEARS THEREIN IT SHALL BE INTERPRETED TO MEAN
 AN ENTITY SELECTED TO ADMINISTER A CERTIFIED  SERVICE-DISABLED  VETERAN-
 OWNED  BUSINESS  ENTERPRISE  REVOLVING  LOAN  TRUST  FUND  ACCOUNT,  AND
 "REGIONAL REVOLVING LOANS TRUST FUND" SHALL MEAN  A  CERTIFIED  SERVICE-
 DISABLED  VETERAN-OWNED  BUSINESS  ENTERPRISE REVOLVING LOAN TRUST FUND,
 AND WHERE THE TERM "THIS SECTION" APPEARS THEREIN  IT  SHALL  MEAN  THIS
 SECTION.
   (G)  THE  CORPORATION  MAY PROVIDE FUNDS FROM AN APPROPRIATION FOR THE
 CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE DEVELOPMENT
 AND LENDING PROGRAM TO ANY ENTITY SELECTED  TO  ADMINISTER  A  CERTIFIED
 SERVICE-DISABLED  VETERAN-OWNED BUSINESS ENTERPRISE REVOLVING LOAN TRUST
 FUND FOR THE PURPOSES OF RECAPITALIZING SUCH ACCOUNT  AND  THE  ENTITY'S
 CORRESPONDING  ADMINISTRATIVE  EXPENSES  TRUST FUND ACCOUNT FOLLOWING AN
 EVALUATION BY THE CORPORATION OF THE ENTITY'S ADMINISTRATION AND USE  OF
 SUCH ACCOUNTS.
   (H)  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, THE CORPO-
 RATION SHALL ESTABLISH A CERTIFIED SERVICE-DISABLED VETERAN-OWNED  BUSI-
 NESS  ENTERPRISE  REVOLVING  LOAN  TRUST  FUND TO PAY INTO SUCH FUND ANY
 MONEYS MADE AVAILABLE TO THE CORPORATION FOR SUCH FUND FROM ANY  SOURCE,
 INCLUDING  MONEYS APPROPRIATED BY THE STATE AND ANY INCOME EARNED BY, OR
 INCREMENT TO, THE ACCOUNT DUE TO THE INVESTMENT THEREOF, OR  ANY  REPAY-
 MENT OF MONEYS ADVANCED FROM THE FUND. THE CORPORATION SHALL NOT COMMIN-
 GLE  THE MONEYS OF SUCH FUND WITH ANY MONEYS HELD IN TRUST BY THE CORPO-
 RATION, EXCEPT FOR INVESTMENT PURPOSES.
   (3) MICRO-LOAN PROGRAM. (A)  FOR  THE  PURPOSES  OF  THIS  SUBDIVISION
 "MICRO-LOAN"  SHALL  MEAN  A  LOAN  OF UNDER SEVEN THOUSAND FIVE HUNDRED
 DOLLARS.
   (B) THE CORPORATION SHALL, PURSUANT TO REQUESTS FOR  PROPOSALS,  ENTER
 INTO  AGREEMENTS FOR OTHER TYPES OF LOCALLY, REGIONALLY OR COMMUNITY-AD-
 MINISTERED LOAN PROGRAMS THAN THOSE SET FORTH IN SUBDIVISION TWO OF THIS
 SECTION, INCLUDING MICRO-LOAN  PROGRAMS  TO  BE  ADMINISTERED  BY  LOCAL
 DEVELOPMENT  CORPORATIONS,  LOCAL  INDUSTRIAL DEVELOPMENT ORGANIZATIONS,
 MUNICIPALITIES AND NOT-FOR-PROFIT ORGANIZATIONS, TO PROVIDE  MICRO-LOANS
 TO SMALL AND HIGH RISK CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS
 ENTERPRISES LOCATED WITHIN THEIR RESPECTIVE SERVICE AREAS, PROVIDED THAT
 LOAN  REVIEW  COMMITTEES  ARE  ESTABLISHED BY SUCH ADMINISTERING ENTITY,
 INCLUDING SERVICE-DISABLED VETERANS, AS DEFINED IN  ARTICLE  SEVENTEEN-B
 OF  THE  EXECUTIVE  LAW,  EXPERIENCED  IN  BUSINESS MANAGEMENT, BUSINESS
 DEVELOPMENT, COMMERCIAL LENDING, ENTREPRENEURSHIP, OR IN  THE  OPERATION
 OF A FOR-PROFIT BUSINESS.
   (C) AGREEMENTS ENTERED INTO PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVI-
 SION  SHALL  BE  GOVERNED  BY  PARAGRAPHS  (D), (E), (F), (G) AND (H) OF
 SUBDIVISION TWO OF THIS SECTION, AND CERTIFIED  SERVICE-DISABLED  VETER-
 AN-OWNED  BUSINESS  ENTERPRISE  REVOLVING  LOAN  TRUST FUND ACCOUNTS AND
 ADMINISTRATIVE EXPENSES TRUST FUND ACCOUNTS SHALL BE  ESTABLISHED  IN  A
 SIMILAR  FASHION  FOR  ENTITIES  SELECTED TO ADMINISTER MICRO-LOAN FUNDS
 PURSUANT TO THIS SUBDIVISION.
   (4)  CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED  BUSINESS   ENTERPRISE
 CONTRACTING  PROGRAM.  FOR  THE  PURPOSE OF ESTABLISHING A COMPREHENSIVE
 PROGRAM TO  ASSIST  CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED  BUSINESS
 ENTERPRISE  CONTRACTORS, THE CORPORATION MAY PROVIDE LOANS, LOAN GUARAN-
 TEES, TECHNICAL ASSISTANCE AND BONDING ASSISTANCE, THE  CORPORATION  MAY
 ENTER INTO COOPERATIVE AGREEMENTS WITH CITIES, COUNTIES, MUNICIPALITIES,
 AUTHORITIES,  AGENCIES,  FEDERALLY  AND STATE CHARTERED CREDIT UNIONS IN

 S. 5642--A                          6

 THE STATE AND FEDERALLY  INSURED  BANKING  ORGANIZATIONS  AND  FINANCIAL
 INSTITUTIONS FOR SUCH PURPOSES.
   (A)  TO  BE  ELIGIBLE  FOR  A  CONTRACTOR LOAN, THE BORROWER MUST HAVE
 EITHER:
   (I) A CONSTRUCTION CONTRACT WITH, OR A CONTRACT TO  PROVIDE  GOODS  OR
 SERVICES TO, A GOVERNMENTAL ENTITY OR AUTHORITY;
   (II) A SUBCONTRACT ON A GOVERNMENT-SPONSORED CONSTRUCTION CONTRACT;
   (III)  A CONTRACT OR SUBCONTRACT ON A GOVERNMENT SPONSORED RESIDENTIAL
 PROJECT; OR
   (IV) A CONTRACT OR SUBCONTRACT ON A  CONSTRUCTION  PROJECT  PREVIOUSLY
 APPROVED BY THE CORPORATION PURSUANT TO SECTION TEN OF THIS ACT.
   (B)  THE  CORPORATION  SHALL PROVIDE TECHNICAL ASSISTANCE SPECIFICALLY
 ORIENTED TO CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE
 GOVERNMENT CONTRACTORS AS PART OF ITS COMPREHENSIVE TECHNICAL ASSISTANCE
 PROGRAM.
   (C) THE CORPORATION IS AUTHORIZED TO PROVIDE  ASSISTANCE  THROUGH  THE
 CREATION  OF,  OR  ASSISTANCE  TO, A CERTIFIED SERVICE-DISABLED VETERAN-
 OWNED BUSINESS ENTERPRISE BONDING GUARANTEE PROGRAM TO ENABLE  CERTIFIED
 SERVICE-DISABLED   VETERAN-OWNED  BUSINESS  ENTERPRISE  CONTRACTORS  AND
 SUBCONTRACTORS TO MEET PAYMENT OR PERFORMANCE BONDING REQUIREMENTS.
   (I) THROUGH SUCH PROGRAM, ASSISTANCE IN THE FORM  OF  WORKING  CAPITAL
 LOANS  AND  LOAN  GUARANTEES PURSUANT TO SUBDIVISION SIX OF THIS SECTION
 MAY ALSO BE PROVIDED TO CERTIFIED SERVICE-DISABLED  VETERAN-OWNED  BUSI-
 NESS   ENTERPRISE   CONTRACTORS  AND  SUBCONTRACTORS  WHO  HAVE  SECURED
 CONTRACTS BY PARTICIPATING IN THE PROGRAM.
   (II) THE CORPORATION SHALL EITHER ESTABLISH CRITERIA FOR  THE  BONDING
 GUARANTEE  PROGRAM AND FOR ANY REQUIRED ESCROW FUNDS WHICH SHALL INCLUDE
 DETAILED PROVISIONS FOR ELIGIBILITY; OR IF THE CORPORATION IS  PROVIDING
 ASSISTANCE  TO  A PROGRAM OTHER THAN ONE ESTABLISHED BY THE CORPORATION,
 REVIEW AND APPROVE THE CRITERIA ESTABLISHED FOR SUCH OTHER PROGRAM.
   (5) DIRECT FINANCIAL ASSISTANCE FOR CERTIFIED SERVICE-DISABLED  VETER-
 AN-OWNED BUSINESS ENTERPRISES. FOR THE PURPOSE OF ESTABLISHING A PROGRAM
 TO  PROVIDE  DIRECT  FINANCIAL  ASSISTANCE TO CERTIFIED SERVICE-DISABLED
 VETERAN-OWNED BUSINESS ENTERPRISES, THE  CORPORATION  IS  AUTHORIZED  TO
 PROVIDE ASSISTANCE IN THE FORM OF:
   (A)  BUSINESS DEVELOPMENT LOANS AND LOAN GUARANTEES PURSUANT TO SUBDI-
 VISION SIX OF THIS SECTION TO ELIGIBLE ENTERPRISES FOR  THE  ACQUISITION
 OR  IMPROVEMENT  OF REAL PROPERTY, MACHINERY, EQUIPMENT OR WORKING CAPI-
 TAL, PROVIDED THAT TO BE ELIGIBLE FOR A BUSINESS DEVELOPMENT  LOAN,  THE
 BORROWERS  MUST  HAVE  BEEN  IN  BUSINESS  FOR  AT LEAST THREE YEARS AND
 PROVIDED THAT THE LOANS MUST BE IN AN AMOUNT EQUAL TO OR  IN  EXCESS  OF
 FIFTY THOUSAND DOLLARS;
   (B)  FRANCHISE  LOANS  TO  ELIGIBLE  ENTERPRISES SEEKING TO ACQUIRE OR
 EXPAND FRANCHISES OF NATIONALLY RECOGNIZED CORPORATIONS,  PROVIDED  THAT
 DISBURSEMENTS  BY  THE CORPORATION OF SUCH LOANS SHALL BE CONDITIONED ON
 OBTAINING SUCH FRANCHISES;
   (C) EQUITY ASSISTANCE FOR ELIGIBLE CERTIFIED  SERVICE-DISABLED  VETER-
 AN-OWNED  BUSINESS  ENTERPRISES  TO  MATCH  EQUITY CONTRIBUTIONS TO SUCH
 ENTERPRISES BY FINANCIAL INSTITUTIONS AND COMMUNITY  DEVELOPMENT  EQUITY
 CAPITAL FUNDS, PROVIDED, HOWEVER, THAT SUCH ASSISTANCE SHALL BE TARGETED
 TO START-UP AND EARLY STAGE ENTERPRISES IN THE MANUFACTURING, RETAIL AND
 SERVICE SECTORS LOCATED IN ECONOMICALLY DISTRESSED AREAS.
   (6)  DEPOSITS  AND  LOAN  GUARANTEES.  FOR  THE PURPOSE OF ENCOURAGING
 PRIVATE FINANCIAL INSTITUTIONS TO MAKE  LOANS  TO  ELIGIBLE  ENTERPRISES
 PURSUANT  TO  THIS  SECTION FOR ANY OF THE ELIGIBLE PROJECTS PURSUANT TO

 S. 5642--A                          7
 
 SUBDIVISIONS FOUR AND FIVE OF THIS SECTION, THE CORPORATION  IS  AUTHOR-
 IZED TO:
   (A)  MAKE  LINKED DEPOSITS OF FUNDS INTO FEDERALLY AND STATE CHARTERED
 CREDIT UNIONS IN THE STATE, IN ORDER TO ENCOURAGE SUCH ORGANIZATIONS  TO
 MAKE  SMALL  LOANS  TO CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS
 ENTERPRISES; AND
   (B) PROVIDE LOAN GUARANTEES  TO  PRIVATE  FINANCIAL  INSTITUTIONS  FOR
 LOANS MADE TO ELIGIBLE CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS
 ENTERPRISES PURSUANT TO THIS SUBDIVISION FOR ELIGIBLE PROJECTS, PROVIDED
 THAT  THE  GUARANTEE  SHALL BE AT LEAST FIFTY PERCENT BACKED BY FUNDS OF
 THE CORPORATION. ANY SUCH LOAN GUARANTEED BY THE  CORPORATION  SHALL  BE
 MADE TO BORROWERS THAT ARE APPROVED BY THE CORPORATION AND SUBSTANTIALLY
 MEET THE UNDERWRITING CRITERIA THE CREDIT UNION OR FINANCIAL INSTITUTION
 CUSTOMARILY  APPLIES TO SIMILAR BORROWERS FOR SIMILAR LOANS SUPPORTED BY
 SIMILAR GUARANTEES, AND NO GUARANTEED  LOAN  FUNDS  SHALL  BE  DISBURSED
 UNTIL  THE CORPORATION HAS RECEIVED, REVIEWED AND CONCURRED, IN WRITING,
 WITH THE RECOMMENDATION OF THE CREDIT  UNION  OR  BANKING  OR  FINANCIAL
 INSTITUTION TO MAKE A LOAN.
   (7) CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE SMALL
 BUSINESS INCUBATOR PROGRAM. (A) THE CORPORATION SHALL ESTABLISH A CERTI-
 FIED  SERVICE-DISABLED  VETERAN-OWNED BUSINESS ENTERPRISE SMALL BUSINESS
 INCUBATOR PROGRAM FOR THE PURPOSE OF PROVIDING FINANCIAL SUPPORT FOR THE
 CREATION OF INCUBATORS TO NURTURE  CERTIFIED  SERVICE-DISABLED  VETERAN-
 OWNED BUSINESS ENTERPRISES WITH GROWTH POTENTIAL.
   (B)  UNDER  THIS  SUBDIVISION THE CORPORATION IS AUTHORIZED TO PROVIDE
 LOW-INTEREST LOANS AND GRANTS FOR CONSTRUCTION FINANCING  AND  PERMANENT
 FINANCING OF UP TO SEVENTY-FIVE PERCENT OF PROJECT COSTS UP TO A MAXIMUM
 OF  SIX  HUNDRED  FIFTY  THOUSAND DOLLARS PER PROJECT, PROVIDED THAT THE
 TOTAL AMOUNT OF GRANT ASSISTANCE PROVIDED  PURSUANT  TO  THIS  PARAGRAPH
 SHALL  NOT  EXCEED  TWENTY  PERCENT OF AN APPROPRIATION PROVIDED FOR THE
 PURPOSES OF THIS SECTION.
   (C) INCUBATOR PROJECTS ELIGIBLE FOR SUCH ASSISTANCE SHALL INVOLVE  THE
 RENOVATION  OR  RECONSTRUCTION OF EXISTING FACILITIES OR THE ACQUISITION
 OF EQUIPMENT, EXCEPT THAT CONSTRUCTION SHALL BE ALLOWABLE  IN  CASES  IN
 WHICH  AN  APPLICANT  CAN  DEMONSTRATE TO THE SATISFACTION OF THE CORPO-
 RATION THAT AN EXISTING FACILITY IS UNAVAILABLE IN THE AREA TO BE SERVED
 BY THE NEW INCUBATOR FACILITY.
   (D) INCUBATOR PROJECTS ARE NOT  ELIGIBLE  TO  RECEIVE  LOANS  FOR  THE
 PURPOSE  OF  COVERING  OPERATING  COSTS  OR  SUPPLYING INCUBATOR SUPPORT
 SERVICES, EXCEPT THAT INCUBATORS IN THEIR FIRST EIGHTEEN MONTHS OF OPER-
 ATION MAY RECEIVE ONE-TIME GRANTS NOT TO EXCEED FORTY THOUSAND  DOLLARS,
 WHICH  COSTS  MAY  INCLUDE  ADMINISTRATIVE COSTS OF EMPLOYING A RESIDENT
 ADMINISTRATOR/ADVISOR TO THE INCUBATOR, PROVIDED  THAT  THE  CORPORATION
 SHALL  NOT  EXPEND A SUM GREATER THAN TWO HUNDRED FIFTY THOUSAND DOLLARS
 IN ANY ONE STATE FISCAL YEAR, OR SO MUCH AS MAY BE  SPECIFICALLY  APPRO-
 PRIATED FOR THIS PURPOSE.
   (E)  ELIGIBLE  INCUBATOR  PROJECTS SHALL BE REQUIRED TO DEMONSTRATE TO
 THE CORPORATION'S SATISFACTION:
   (I) PUBLIC OR PRIVATE SUPPORT AND INVOLVEMENT SUFFICIENT  TO  COMPLETE
 THE RENOVATION OF EXISTING FACILITIES OR THE CONSTRUCTION OF NEW FACILI-
 TIES AND THE ACQUISITION OF EQUIPMENT;
   (II) SIGNIFICANT COMMUNITY SUPPORT FOR THE PROJECT;
   (III) THE EXISTENCE OF PROSPECTIVE TENANTS FOR SUCH INCUBATOR SPACE;
   (IV)  DEMAND  FOR  SUCH INCUBATOR SPACE, WHICH MAY INCLUDE EVIDENCE OF
 THE UNAVAILABILITY OF SUITABLE SPACE FOR PROSPECTIVE TENANTS  AT  APPRO-

 S. 5642--A                          8
 
 PRIATE  RENTAL OR LEASE COSTS IN THE COMMUNITY IN WHICH SUCH PROSPECTIVE
 TENANTS ARE LOCATED; AND
   (V) THE INABILITY OF THE PROJECT TO OCCUR WITHOUT FINANCIAL ASSISTANCE
 FROM THE CORPORATION.
   (F) THE CORPORATION SHALL ESTABLISH CRITERIA FOR ELIGIBILITY FOR FUND-
 ING FOR INCUBATOR PROJECTS, INCLUDING BUT NOT LIMITED TO THE FOLLOWING:
   (I) THE PROJECT MUST BE DESIGNED TO PROVIDE LOW-COST SPACE AND SUPPORT
 SERVICES  TO  INCUBATOR  TENANTS,  COORDINATION  WITH  OTHER  SOURCES OF
 ASSISTANCE AND FLEXIBLE LEASING ARRANGEMENTS FOR TENANTS;
   (II) THE PROJECT SPONSORS MUST PROVIDE A MANAGEMENT PLAN AND  A  BUSI-
 NESS  PLAN  FOR OPERATING THE INCUBATOR SATISFACTORY TO THE CORPORATION;
 AND
   (III) THE PROJECT GIVES PREFERENCE FOR INCUBATOR SPACE AND  ASSISTANCE
 TO  CERTIFIED  SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES WHICH
 CURRENTLY RECEIVE, OR HAVE RECEIVED,  ASSISTANCE  FROM  THE  CORPORATION
 PURSUANT  TO  THIS  SECTION  AND  TO  INCUBATOR  PROJECTS PROPOSED TO BE
 LOCATED IN ECONOMICALLY DISTRESSED AREAS.
   (8) CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE TECH-
 NICAL ASSISTANCE PROGRAM. (A) THE CORPORATION SHALL ESTABLISH A  COMPRE-
 HENSIVE  TECHNICAL ASSISTANCE PROGRAM WITHIN THE CERTIFIED SERVICE-DISA-
 BLED VETERAN-OWNED BUSINESS ENTERPRISE  DEVELOPMENT  OFFICE  TO  PROVIDE
 TECHNICAL  ASSISTANCE  TO CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSI-
 NESS ENTERPRISES THROUGH THIRD PARTY SERVICE PROVIDERS, WHICH ASSISTANCE
 SHALL INCLUDE, BUT NOT BE LIMITED TO: (I) TECHNICAL ASSISTANCE IN DEVEL-
 OPMENT AND EXECUTION OF BUSINESS  PLANS,  INCLUDING  THE  FORMATION  OF,
 ACQUISITION  OF,  MANAGEMENT  OF,  OR  DIVERSIFICATION  OF  A  CERTIFIED
 SERVICE-DISABLED  VETERAN-OWNED  BUSINESS  ENTERPRISE;  (II)   TECHNICAL
 ASSISTANCE WITH APPLICATIONS FOR OBTAINING FUNDS FROM PUBLIC AND PRIVATE
 FINANCING  SOURCES;  (III)  TECHNICAL ASSISTANCE IN THE DEVELOPMENT OF A
 WORKING CAPITAL BUDGET; (IV) REFERRALS TO OTHER PROVIDERS  OF  TECHNICAL
 ASSISTANCE  TO  CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTER-
 PRISES AND CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS  ENTERPRISE
 ENTREPRENEURS,  WHERE APPROPRIATE, INCLUDING THE ENTREPRENEURIAL ASSIST-
 ANCE PROGRAM ESTABLISHED PURSUANT TO ARTICLE NINE OF THE ECONOMIC DEVEL-
 OPMENT LAW; AND (V)  TECHNICAL  ASSISTANCE  THROUGH  EDUCATION  PROGRAMS
 DIRECTED  PRIMARILY AT CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS
 ENTERPRISE ENTREPRENEURS.
   (B) TECHNICAL ASSISTANCE MAY  BE  PROVIDED  THROUGH  DIRECT  CORPORATE
 SUPPORT,  THROUGH  GRANTS  TO  OR  CONTRACTS  WITH  SERVICE PROVIDERS OR
 GOVERNMENTAL  ENTITIES,  AND  CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED
 BUSINESS ENTERPRISES.
   (9)  PRIORITIES.  THE  CORPORATION SHALL GIVE PRIORITY TO APPLICATIONS
 FOR ASSISTANCE PURSUANT TO THIS SECTION IN WHICH  THE  BUSINESS  SEEKING
 SUCH  ASSISTANCE INDICATES A COMMITMENT TO FIRST CONSIDER PERSONS ELIGI-
 BLE TO PARTICIPATE IN FEDERAL JOB TRAINING PARTNERSHIP ACT (P.L. 97-300)
 PROGRAMS.
   (10) NON-APPLICATION OF CERTAIN PROVISIONS. THE PROVISIONS OF  SECTION
 TEN  AND  SUBDIVISION TWO OF SECTION SIXTEEN OF THIS ACT SHALL NOT APPLY
 TO ASSISTANCE OR PROJECTS AUTHORIZED PURSUANT TO THIS SECTION.
   (11) RULES AND REGULATIONS. THE CORPORATION  SHALL,  ASSISTED  BY  THE
 COMMISSIONER  OF  ECONOMIC  DEVELOPMENT  AND  IN  CONSULTATION  WITH THE
 DEPARTMENT OF ECONOMIC DEVELOPMENT, PROMULGATE RULES AND REGULATIONS  IN
 ACCORDANCE  WITH  THE STATE ADMINISTRATIVE PROCEDURE ACT. SUCH RULES AND
 REGULATIONS SHALL BE CONSISTENT WITH THE PROGRAM PLAN REQUIRED BY SUBDI-
 VISION NINETEEN OF SECTION ONE HUNDRED OF THE ECONOMIC DEVELOPMENT  LAW.
 NO  FUNDS  SHALL  BE  DISBURSED  UNDER THIS PROGRAM UNTIL SUCH RULES AND

 S. 5642--A                          9
 
 REGULATIONS HAVE BEEN REVIEWED AND APPROVED BY  THE  CORPORATION.    ALL
 ASSISTANCE  AND  PROJECTS  FUNDED  UNDER THIS PROGRAM SHALL BE FUNDED IN
 ACCORDANCE WITH THE RULES AND REGULATIONS IN  EFFECT  ON  THE  DATE  THE
 COMPLETED  APPLICATION  FOR  SUCH  ASSISTANCE  SHALL  BE RECEIVED BY THE
 CORPORATION.
   (12)  CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED  BUSINESS  ENTERPRISE
 DEVELOPMENT AND LENDING ACCOUNT. NOTWITHSTANDING ANY PROVISION OF LAW TO
 THE CONTRARY, THE CORPORATION SHALL ESTABLISH WITHIN THE TREASURY OF THE
 CORPORATION  A  CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTER-
 PRISE DEVELOPMENT AND LENDING ACCOUNT, AND SHALL PAY INTO  SUCH  ACCOUNT
 ANY  MONEYS  WHICH  MAY  BE  MADE  AVAILABLE TO THE CORPORATION FOR THIS
 PURPOSE FROM ANY SOURCE INCLUDING, BUT NOT LIMITED TO, MONEYS  APPROPRI-
 ATED  BY  THE STATE AND ANY REPAYMENT OF PRINCIPAL AND INTEREST ON LOANS
 MADE BY THE  CORPORATION  PURSUANT  TO  THE  CERTIFIED  SERVICE-DISABLED
 VETERAN-OWNED BUSINESS ENTERPRISE DEVELOPMENT AND LENDING PROGRAM. FUNDS
 IN  THE  CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED  BUSINESS ENTERPRISE
 DEVELOPMENT AND LENDING ACCOUNT, INCLUDING FUNDS FROM THE  REPAYMENT  OF
 PRINCIPAL AND INTEREST ON LOANS MADE BY THE CORPORATION, MAY BE USED FOR
 ANY FORM OF ASSISTANCE AUTHORIZED PURSUANT TO THIS SECTION.  THE AMOUNTS
 DEPOSITED  IN  THE  CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED  BUSINESS
 ENTERPRISE DEVELOPMENT AND LENDING ACCOUNT MAY NOT BE INTERCHANGED  WITH
 ANY  OTHER  ACCOUNT,  BUT  MAY  BE COMMINGLED WITH ANY OTHER ACCOUNT FOR
 INVESTMENT PURPOSES. ALL LOANS DISBURSED BY  THE  CORPORATION  SHALL  BE
 REPAID  INTO  THE  ACCOUNT.  THE  CORPORATION SHALL ENTER INTO A WRITTEN
 AGREEMENT WITH THE DIRECTOR OF THE BUDGET FOR REPAYMENT,  TO  THE  STATE
 COMPTROLLER TO THE CREDIT OF THE CAPITAL PROJECTS FUND, OF ALL MONEYS IN
 THE  ACCOUNT  AFTER A PERIOD OF TIME TO BE DETERMINED BY THE CORPORATION
 AND THE DIRECTOR OF THE BUDGET. THE CORPORATION SHALL  TRANSFER  TO  THE
 CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE DEVELOPMENT
 AND  LENDING  ACCOUNT:  ALL MONEYS APPROPRIATED OR REAPPROPRIATED BY NEW
 YORK STATE FOR THE  CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED  BUSINESS
 ENTERPRISE  REVOLVING LOAN TRUST FUND THAT HAVE NOT BEEN COMMITTED PRIOR
 TO THE EFFECTIVE DATE OF  THE  APPROPRIATION  FOR  THE  PROGRAM  IN  THE
 CURRENT  FISCAL  YEAR, OR BECOME UNCOMMITTED SUBSEQUENT TO THE EFFECTIVE
 DATE OF THE PROGRAM'S APPROPRIATION FOR THE CURRENT FISCAL YEAR; AND ALL
 REPAYMENTS OF PRINCIPAL AND INTEREST ON LOANS MADE  BY  THE  CORPORATION
 WHICH  ARE  CURRENTLY  ON  DEPOSIT  IN,  OR  PAYABLE  TO,  THE CERTIFIED
 SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE DEVELOPMENT AND LEND-
 ING ACCOUNT.
   (13) STANDARDIZATION. THE CORPORATION SHALL STREAMLINE THE REVIEW  AND
 APPROVAL  PROCESS  FOR  PROJECTS  AND  WHEREVER POSSIBLE STANDARDIZE ALL
 RELEVANT ATTENDANT DOCUMENTATION AND LEGAL DOCUMENTS.
   (14) APPROVAL CYCLE. THE CORPORATION SHALL APPROVE ELIGIBLE  LOANS  OR
 GRANTS  ON AT LEAST A FOUR-MONTH CYCLE AND SHALL GIVE PRIORITY CONSIDER-
 ATION TO THE COMPARATIVE DEGREE OF ECONOMIC DISTRESS WITHIN THE AREAS IN
 WHICH THE PROJECT IS LOCATED. OTHER FACTORS  TO  BE  CONSIDERED  BY  THE
 CORPORATION  SHALL  INCLUDE  THE IMPACT OF THE PROJECT ON THE EMPLOYMENT
 AND ECONOMIC CONDITION OF THE COMMUNITY AND THE FINANCIAL FEASIBILITY OF
 THE PROJECT.
   (15) REPAYMENT. NOTWITHSTANDING THE PROVISIONS OF SECTION  FORTY-A  OF
 THE  STATE  FINANCE LAW AND ANY OTHER GENERAL OR SPECIAL LAW, NO WRITTEN
 AGREEMENT UNDER THIS PROGRAM SHALL REQUIRE REPAYMENT AT ANY TIME  OR  ON
 ANY  TERMS  INCONSISTENT WITH THE PROVISIONS OF THIS ACT OR THE NEW YORK
 STATE PROJECT FINANCE AGENCY ACT; EXCEPT, HOWEVER, THAT THE  CORPORATION
 MAY  MAKE  GRANTS  TO PROJECTS USING FUNDS APPROPRIATED FOR THIS PURPOSE
 AND THAT THE REPAYMENT PROVISION MAY NOT APPLY TO SUCH GRANTS.

 S. 5642--A                         10
 
   (16) REPORTS. THE CHAIRMAN OF THE  CORPORATION  SHALL  SUBMIT  TO  THE
 DIRECTOR  OF  THE  BUDGET, THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY
 PRESIDENT OF THE SENATE  AN  EVALUATION  OF  THE  EFFECTIVENESS  OF  THE
 PROGRAM PREPARED BY AN ENTITY INDEPENDENT OF THE CORPORATION. THE CORPO-
 RATION SHALL SELECT THE PROGRAM EVALUATOR THROUGH A REQUEST FOR PROPOSAL
 PROCESS. SUCH EVALUATION SHALL DETERMINE WHETHER THE ASSISTANCE PROVIDED
 HAS  ENHANCED  THE  ECONOMIC CONDITION OF ASSISTED COMPANIES OR COMMUNI-
 TIES, AND SHALL MAKE RECOMMENDATION FOR IMPROVEMENTS  WHICH  WOULD  MAKE
 THE  PROGRAM  MORE  EFFECTIVE.  SUCH  EVALUATION  SHALL  BE SUBMITTED BY
 SEPTEMBER FIRST, TWO THOUSAND TWENTY AND SEPTEMBER FIRST EVERY TWO YEARS
 THEREAFTER.
   § 2. Subdivision 1 of section 210 of the economic development law,  as
 amended  by  section  1 of part DD of chapter 55 of the laws of 2014, is
 amended and a new subdivision 7 is added to read as follows:
   1. "Development centers" shall mean the business  enterprise  develop-
 ment  centers  which  provide  assistance  to  primarily  minority group
 members, women, individuals with a disability,  CERTIFIED  SERVICE-DISA-
 BLED  VETERAN-OWNED  BUSINESS ENTERPRISES and veterans as established by
 the department pursuant to section two hundred eleven of this article.
   7.  "CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED  BUSINESS  ENTERPRISE"
 SHALL  MEAN  A BUSINESS ENTERPRISE, CERTIFIED PURSUANT TO ARTICLE SEVEN-
 TEEN-B OF THE EXECUTIVE LAW.
   § 3. Subdivision 1 and paragraph (d) of subdivision 3 of  section  211
 of  the  economic development law, subdivision 1 as amended by section 3
 of part DD of chapter 55 of the laws of 2014 and paragraph (d) of subdi-
 vision 3 as amended by chapter 227 of the laws of 1993, are  amended  to
 read as follows:
   1.  The  department  shall  provide grants, within available appropri-
 ations, on a competitive basis, in response to a request  for  proposals
 to  pilot  development  centers,  to  provide  intensive community-based
 management and technical assistance targeted primarily to minority group
 members, women, individuals with a disability,  CERTIFIED  SERVICE-DISA-
 BLED  VETERAN-OWNED BUSINESS ENTERPRISES and veterans who are seeking to
 start or are starting new business ventures.
   (d) establish an advisory group  of  community  business  experts,  at
 least  one-half  of  whom shall be representative of the clientele to be
 served by the center,  which  shall  constitute  a  support  network  to
 provide  counseling  and  mentoring  services to minority group members,
 women, VETERANS and individuals with a disability from the concept stage
 of development through the first one to two  years  of  existence  on  a
 regular  basis and as needed thereafter during the first five years of a
 new venture; and
   § 4. This act shall take effect one year after it shall have become  a
 law.