NY State Senate Bill S6165

Archive: Last Bill Status - Passed Senate

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
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Actions

view actions (15)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 10, 2020	referred to ways and means delivered to assembly passed senate
Feb 27, 2020	advanced to third reading
Feb 26, 2020	2nd report cal.
Feb 25, 2020	1st report cal.475
Jan 08, 2020	referred to finance returned to senate died in assembly
Jun 13, 2019	referred to ways and means delivered to assembly passed senate ordered to third reading cal.1362 committee discharged and committed to rules
May 21, 2019	referred to finance

Votes

S6165 (ACTIVE) - Details

See Assembly Version of this Bill:: A7688
Law Section:: State Finance Law
Laws Affected:: Amd §217, St Fin L

S6165 (ACTIVE) - Summary

Removes the maximum limit on the amount of a single linked loan and increases the maximum amount a business can borrow during the life of the linked loan program.

S6165 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S6165

SPONSOR: SANDERS
 
TITLE OF BILL:  An act to amend the state finance law, in relation to
the Excelsior Linked Deposit Program

 
PURPOSE OF BILL:

The proposed legislation amends the Excelsior Linked Deposit program to
increase the lifetime cap on the total amount of money a company may
borrow in the program from $2 million to $5 million and to remove the
current $2 million limit on the maximum loan amount a company may
receive under the program.

 
SUMMARY OF PROVISIONS:

Section one of the proposed legislation amends the state finance law to
increase the lifetime cap on the total amount of money a company may
borrow in the program from $2 million to $5 million. It also removes the
current $2 million limit on the maximum loan amount a company may
receive under the program.

Section 2 of the proposed legislation provides that it will take effect
immediately upon the effective date of the bill.

 
JUSTIFICATION:

The Linked Deposit Program is experiencing increased activity, which is
associated with rising interest rates. Year to date activity has
increased by 60 percent when comparing 2018 to 2017 activity. In addi-
tion to rising interest rates impacting activity, Empire State Develop-
ment ("ESD") has contributed to the increase as well by actively promot-
ing the program through continued outreach to the banking community,
small businesses and minority and women owned enterprises.

To date, Linked Deposit Program assistance has been provided on three
hundred and thirty-one (331) loans to minority and/or woman owned firms
for a total of $111.28 million, of which six (6) loans have reached
their lifetime maximum. Overall, five thousand six hundred and seventy-
seven (5,677) loans totaling over $1.9 billion have been approved for
assistance, most of those to businesses with one hundred or fewer
employees.

There are currently eighty-eight (88) borrowers that have reached their
lifetime maximum for Linked Deposit assistance. A majority of these
businesses have added employees, which demonstrates the effectiveness of
the program and how it supports the growth of the economy.

Since these businesses are no longer able to utilize the program's
interest rate reduction, they experience increased cost of capital and
will face higher borrowing costs when attempting to expand or improve
their operations. They are being penalized unnecessarily for having
reached their lifetime maximum and through no fault of their own are
paying more to borrow and invest in the growth of their business.

ESD expects these firms would continue to access the program if legally
able to. In addition, ESD has heard from borrowers wishing to have the
cap raised so they could continue to participated in the program and

from lenders stating it would be beneficial to their business if the
lifetime allowance were to be increased.

ESD is confident that an increase to the lifetime maximum would allow
the businesses that have reached the maximum to utilize the program
again and further invest in the improvement and expansion of their busi-
ness.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill. This bill was previously introduced in 2017 and
introduced as 5.6491 (Young) and A.8117 (Schimminger).

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This bill would take effect immediately.

S6165 (ACTIVE) - Bill Text download pdf


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

                                  6165

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                              May 21, 2019
                               ___________

Introduced  by  Sen. SANDERS -- (at request of the Empire State Develop-
  ment) -- read twice and  ordered  printed,  and  when  printed  to  be
  committed to the Committee on Finance

AN  ACT  to  amend  the  state finance law, in relation to the Excelsior
  Linked Deposit Program

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

  Section 1. Section 217 of the state finance law, as amended by section
1  of  part  H  of chapter 60 of the laws of 2011, is amended to read as
follows:
  § 217. Linked loans. Linked loans shall be made by lenders pursuant to
the program only to eligible  businesses  in  connection  with  eligible
projects.  [A  linked  loan  shall be limited to a maximum amount of two
million dollars.] An eligible business may receive more than one  linked
loan.  During  the  life of the linked loan program, the total amount of
money that a business can borrow from the linked program is  [two]  FIVE
million  dollars.  The credit decision for making a linked loan shall be
made solely by the lender. Notwithstanding the length of the term  of  a
linked loan, the linked deposit relating to the linked loan shall be for
a period of not more than four years.
  § 2. This act shall take effect immediately.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09724-01-9

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The New York State Senate

senate Bill S6165

Sponsored By

Archive: Last Bill Status - Passed Senate

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Votes

Mar 10, 2020 - floor Vote

Floor Vote: Mar 10, 2020

Feb 25, 2020 - Finance committee Vote

Finance Committee Vote: Feb 25, 2020

Jun 13, 2019 - floor Vote

Floor Vote: Jun 13, 2019

Jun 13, 2019 - Rules committee Vote

Rules Committee Vote: Jun 13, 2019

S6165 (ACTIVE) - Details

S6165 (ACTIVE) - Summary

S6165 (ACTIVE) - Sponsor Memo

S6165 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S6165

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Sponsored By

James Sanders Jr.

Archive: Last Bill Status - Passed Senate

Your Voice

Actions

Votes

Mar 10, 2020 - floor Vote

Floor Vote: Mar 10, 2020

Feb 25, 2020 - Finance committee Vote

Finance Committee Vote: Feb 25, 2020

Jun 13, 2019 - floor Vote

Floor Vote: Jun 13, 2019

Jun 13, 2019 - Rules committee Vote

Rules Committee Vote: Jun 13, 2019

S6165 (ACTIVE) - Details

S6165 (ACTIVE) - Summary

S6165 (ACTIVE) - Sponsor Memo

S6165 (ACTIVE) - Bill Text download pdf

Comments