NY State Senate Bill S2296A

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

view actions (17)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 04, 2020	referred to economic development delivered to assembly passed senate
Feb 24, 2020	advanced to third reading
Feb 13, 2020	2nd report cal.
Feb 12, 2020	1st report cal.429
Jan 08, 2020	referred to corporations, authorities and commissions returned to senate died in assembly
Jun 17, 2019	referred to economic development delivered to assembly passed senate ordered to third reading cal.1417 committee discharged and committed to rules
Jun 12, 2019	print number 2296a
Jun 12, 2019	amend and recommit to corporations, authorities and commissions
Jan 23, 2019	referred to corporations, authorities and commissions

Votes

view votes

Mar 4, 2020 - floor Vote

S2296A

floor

Aye

Nay

Absent

Excused

Abstained

Feb 12, 2020 - Corporations, Authorities and Commissions committee Vote

S2296A

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

show Corporations, Authorities and Commissions committee vote details

Corporations, Authorities and Commissions Committee Vote: Feb 12, 2020

aye (6)

excused (1)

Ranzenhofer

Jun 17, 2019 - floor Vote

S2296A

floor

Aye

Nay

Absent

Excused

Abstained

Jun 17, 2019 - Rules committee Vote

S2296A

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Bill Amendments

Original

A (Active)

Original

A (Active)

S2296 - Details

See Assembly Version of this Bill:: A1819
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Amd §16-c, UDC Act
Versions Introduced in Other Legislative Sessions:: 2011-2012: A8037
2013-2014: A4350
2015-2016: S5737, A4212, A7719
2017-2018: S3218, A491
2021-2022: S571, A6420

S2296 - Summary

Allows businesses to use funds received from the minority- and women-owned business development and lending program for the purpose of refinancing existing debt.

S2296 - Sponsor Memo

 
BILL NUMBER: S2296

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the urban development corporation act, in relation to
allowing businesses to use funds received from the minority and women-
owned business development and lending program for the purpose of refi-
nancing existing debt

 
PURPOSE:

Allows businesses to use funds received from minority and women-owned
business development and lending program for the purpose of refinancing
existing debt.

 
SUMMARY OF PROVISIONS:

Section 1. Subparagraphs (vi) and (vii) of paragraph (c) of subdivision
1 of section 16-c of section 1 of chapter 174 of the laws of 1968,
constituting the urban development corporation act, as added by chapter

169 of the law of 1994, are amended.

 
EXISTING LAW:

The state Minority and Women Owned Business Enterprises goals do not
currently apply to municipalities.

 
JUSTIFICATION:

Currently, the minority and women-owned business development and lending
program does not allow small business to do debt refinancing.  Modifying
this existing loan program would permit a small business to refinance
existing debt on more favorable terms, which would allow these busi-
nesses to improve their cash flow. Too often, commercial credit cards
are the first and only means for small businesses to access credit. And
while credit cards provide relatively easy and convenient credit, inter-
est rates are substantially higher (often topping @20%) than loans
available through banks, credit unions, or CDFIs. For example, a small
business with $20,000 in credit card debt could expect to pay $4,000 or
more a year in interest on credit card debt. However, if the business
could refinance that debt under one of the State's existing micro-loan
programs, the interest payments could fall to as little as $1,200 to
$1,600, saving the business nearly $3,000 a year.

(www.nysmalllbiztaskforce.org)

 
LEGISLATIVE HISTORY:

2011: Referred to Economic Development;

2012: Referred to Economic Development;

2013-2014: Referred to Economic Development;

 
FISCAL IMPLICATIONS:

None

 
LOCAL FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.

S2296 - Bill Text download pdf


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

                                  2296

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            January 23, 2019
                               ___________

Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN  ACT  to  amend the urban development corporation act, in relation to
  allowing businesses to  use  funds  received  from  the  minority  and
  women-owned  business  development and lending program for the purpose
  of refinancing existing debt

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subparagraphs (vi) and (vii) of paragraph (c) of subdivi-
sion 1 of section 16-c of section 1 of chapter 174 of the laws of  1968,
constituting  the  urban  development  corporation  act,  as  amended by
section 1 of part AA of chapter 55 of the laws of 2014, are  amended  to
read as follows:
  (vi) overnight lodging facilities[;
  (vii)  refinancing  of  debt  or  equity  invested in an enterprise or
project].
  § 2. Subparagraphs (vii) and (viii) of paragraph (d) of subdivision  1
of section 16-c of section 1 of chapter 174 of the laws of 1968, consti-
tuting  the  urban  development  corporation  act, subparagraph (vii) as
amended and subparagraph (viii) as added by section  1  of  part  AA  of
chapter  55 of the laws of 2014, are amended and a new subparagraph (ix)
is added to read as follows:
  (vii) establish a comprehensive technical assistance program in  coop-
eration  with the department of economic development to assist minority-
and women-owned businesses and potential minority  and  women-entrepren-
eurs; [and]
  (viii) notwithstanding any provision of law to the contrary, establish
a minority- and women-owned business investment fund to provide critical
financial  support  to  foster the development of new and emerging ideas
and products of minority- and women-owned business enterprises  as  well

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

                                                           LBD00792-01-9

S. 2296                             2

as  to  promote the long-term financial performance and success of early
stage enterprises that are  minority-  and  women-owned  start-ups.  The
selection  of  an  eligible  applicant and beneficiary companies for the
minority-  and women-owned business investment fund shall be selected by
the process established pursuant to subdivisions  two  through  four  of
section  sixteen-u of this act. Minority- or women-owned business enter-
prises who  participate  in  such  minority-  and  women-owned  business
investment fund under this subdivision shall not be precluded from qual-
ifying  for  any other assistance, grant or loan made available from the
state[.]; AND
  (IX) PROVIDE FOR THE REFINANCING OF DEBT  OR  EQUITY  INVESTED  IN  AN
ENTERPRISE OR PROJECT.
  §  3.  This  act shall take effect on the ninetieth day after it shall
have become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary  for  the  implementation  of
this  act  on  its effective date are authorized and directed to be made
and completed on or before such effective date.

Co-Sponsors

S2296A (ACTIVE) - Details

See Assembly Version of this Bill:: A1819
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Amd §16-c, UDC Act
Versions Introduced in Other Legislative Sessions:: 2011-2012: A8037
2013-2014: A4350
2015-2016: S5737, A4212, A7719
2017-2018: S3218, A491
2021-2022: S571, A6420

S2296A (ACTIVE) - Summary

Allows businesses to use funds received from the minority- and women-owned business development and lending program for the purpose of refinancing existing debt.

S2296A (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S2296A        Revised 3/4/2020

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the urban development corporation act, in relation to
allowing businesses to use funds received from the minority and women-
owned business development and lending program for the purpose of refi-
nancing existing debt

 
PURPOSE:

Allows businesses to use funds received from Minority and Women-Owned
Business Development and Lending Program of the Empire State Development
Corporation for the purpose of refinancing existing debt.

 
SUMMARY OF PROVISIONS:

Section 1. Subparagraphs (vi) and (vii) of paragraph (c) of subdivision
1 of section 16-c of section 1 of Chapter 174 of the Laws of 1968,
constituting the urban development corporation act, as added by chapter

169 of the law of 1994, are amended. A debt may be refinanced if the
chairperson of the Empire State Development Corporation finds the
original debt to be unreasonable.

 
EXISTING LAW:

The state Minority and Women Owned Business Enterprises goals do not
currently apply to municipalities.

 
JUSTIFICATION:

Currently, the Minority and Women-Owned Business Development and Lending
Program does not allow small business to do debt refinancing.  Modifying
this existing loan program would permit a small business to refinance
existing debt on more favorable terms, which would allow these busi-
nesses to improve their cash flow. Too often, commercial credit cards
are the first and only means for small businesses to access credit. And
while credit cards provide relatively easy and convenient credit, inter-
est rates are substantially higher (often topping @20%) than loans
available through banks, credit unions, or CDFIs. For example, a small
business with $20,000 in credit card debt could expect to pay $4,000 or
more a year in interest on credit card debt. However, if the business
could refinance that debt under one of the State's existing micro-loan
programs, the interest payments could fall to as little as $1,200 to
$1,600, saving the business nearly $3,000 a year.

 
LEGISLATIVE HISTORY:

2011-12: A.8037 Referred to assembly economic development

2013-14: A.4350 Referred to assembly economic development

2015-16: 5.5737 REFERRED TO SENATE CORPORATIONS, AUTHORITIES AND COMMIS-
SIONS

2015-17: A.7719 Referred to assembly economic development


2017-18: S.3218 REFERRED TO SENATE CORPORATIONS, AUTHORITIES AND COMMIS-
SIONS

2017-18: A.491 Referred to assembly economic development

2019:S.2296-A passed Senate

 
FISCAL IMPLICATIONS:

None

 
LOCAL FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.

S2296A (ACTIVE) - Bill Text download pdf


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

                                 2296--A

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            January 23, 2019
                               ___________

Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and   Commissions  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the urban development corporation act,  in  relation  to
  allowing  businesses  to  use  funds  received  from  the minority and
  women-owned business development and lending program for  the  purpose
  of refinancing existing debt

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subparagraph (vii) of paragraph (c)  of  subdivision  1  of
section 16-c of section 1 of chapter 174 of the laws of 1968, constitut-
ing  the  urban  development corporation act, as amended by section 1 of
part AA of chapter 55 of the  laws  of  2014,  is  amended  to  read  as
follows:
  (vii)  refinancing  of  debt  or  equity  invested in an enterprise or
project, UNLESS THE CHAIRPERSON OF THE CORPORATION FINDS  THE  TERMS  OF
THE ORIGINAL DEBT TO BE UNREASONABLE AS PROVIDED IN SUBPARAGRAPH (IX) OF
PARAGRAPH (D) OF THIS SUBDIVISION.
  §  2. Subparagraphs (vii) and (viii) of paragraph (d) of subdivision 1
of section 16-c of section 1 of chapter 174 of the laws of 1968, consti-
tuting the urban development  corporation  act,  subparagraph  (vii)  as
amended  and  subparagraph  (viii)  as  added by section 1 of part AA of
chapter 55 of the laws of 2014, are amended and a new subparagraph  (ix)
is added to read as follows:
  (vii)  establish a comprehensive technical assistance program in coop-
eration with the department of economic development to assist  minority-
and  women-owned  businesses and potential minority and women-entrepren-
eurs; [and]
  (viii) notwithstanding any provision of law to the contrary, establish
a minority- and women-owned business investment fund to provide critical

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

                                                           LBD00792-02-9

S. 2296--A                          2

financial support to foster the development of new  and  emerging  ideas
and  products  of minority- and women-owned business enterprises as well
as to promote the long-term financial performance and success  of  early
stage  enterprises  that  are  minority-  and women-owned start-ups. The
selection of an eligible applicant and  beneficiary  companies  for  the
minority-  and women-owned business investment fund shall be selected by
the process established pursuant to subdivisions  two  through  four  of
section  sixteen-u of this act. Minority- or women-owned business enter-
prises who  participate  in  such  minority-  and  women-owned  business
investment fund under this subdivision shall not be precluded from qual-
ifying  for  any other assistance, grant or loan made available from the
state[.]; AND
  (IX) PROVIDE FOR THE REFINANCING OF DEBT  OR  EQUITY  INVESTED  IN  AN
ENTERPRISE  OR PROJECT, PROVIDED THAT THE CHAIRPERSON OF THE CORPORATION
DETERMINES THE TERMS OF THE ORIGINAL DEBT TO BE UNREASONABLE. THE APPLI-
CANT MUST SUBMIT A WRITTEN  JUSTIFICATION  TO  THE  CHAIRPERSON  OF  THE
CORPORATION  FOR  EACH  LOAN  EXPLAINING  WHY THE CURRENT LOAN IS NOT ON
REASONABLE TERMS. UNREASONABLE TERMS OF DEBT MAY  INCLUDE  BUT  ARE  NOT
LIMITED TO:
  (1) A DEMAND OR BALLOON MATURITY FEATURE IN THE EXISTING NOTE;
  (2)  THE  CURRENT MATURITY IS NOT APPROPRIATE FOR THE ORIGINAL PURPOSE
OF THE LOAN;
  (3) THE EXISTING DEBT BEING REFINANCED IS ON A  REVOLVING  LINE  OR  A
CREDIT CARD;
  (4) THE INTEREST RATE IS DEEMED UNREASONABLE BY THE CORPORATION; OR
  (5) THE LOAN IS OVER-COLLATERALIZED.
  §  3.  This  act shall take effect on the ninetieth day after it shall
have become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary  for  the  implementation  of
this  act  on  its effective date are authorized and directed to be made
and completed on or before such effective date.

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The New York State Senate

senate Bill S2296A

Sponsored By

Archive: Last Bill Status - Passed Senate

Your Voice

Actions

Votes

Mar 4, 2020 - floor Vote

Floor Vote: Mar 4, 2020

Feb 12, 2020 - Corporations, Authorities and Commissions committee Vote

Corporations, Authorities and Commissions Committee Vote: Feb 12, 2020

Jun 17, 2019 - floor Vote

Floor Vote: Jun 17, 2019

Jun 17, 2019 - Rules committee Vote

Rules Committee Vote: Jun 17, 2019

Bill Amendments

S2296 - Details

S2296 - Summary

S2296 - Sponsor Memo

S2296 - Bill Text download pdf

Co-Sponsors

S2296A (ACTIVE) - Details

S2296A (ACTIVE) - Summary

S2296A (ACTIVE) - Sponsor Memo

S2296A (ACTIVE) - Bill Text download pdf

Comments

senate Bill S2296A

Share this bill

Sponsored By

James Sanders Jr.

Archive: Last Bill Status - Passed Senate

Your Voice

Actions

Votes

Mar 4, 2020 - floor Vote

Floor Vote: Mar 4, 2020

Feb 12, 2020 - Corporations, Authorities and Commissions committee Vote

Corporations, Authorities and Commissions Committee Vote: Feb 12, 2020

Jun 17, 2019 - floor Vote

Floor Vote: Jun 17, 2019

Jun 17, 2019 - Rules committee Vote

Rules Committee Vote: Jun 17, 2019

Bill Amendments

S2296 - Details

S2296 - Summary

S2296 - Sponsor Memo

S2296 - Bill Text download pdf

Co-Sponsors

Anna M. Kaplan

S2296A (ACTIVE) - Details

S2296A (ACTIVE) - Summary

S2296A (ACTIVE) - Sponsor Memo

S2296A (ACTIVE) - Bill Text download pdf

Comments