Senate Bill S9515

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9515
 
                             I N  S E N A T E
 
                               July 29, 2022
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the banking law and the New York state urban development
   corporation act, in relation to the capital access program
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1. Paragraph (b) of subdivision 1 of section 212 of the bank-
 ing law, as amended by chapter 1 of the laws of 1994, is amended to read
 as follows:
   (b) The corporation shall undertake the following programs in further-
 ance  of  the  above  objectives:  (i)  establish  regional  offices  at
 locations  throughout  New  York,  with  sufficient  staffing to advise,
 develop and package financial assistance  for  small  and  medium  sized
 businesses;  (ii)  develop  a comprehensive outreach program to increase
 the visibility and awareness of the  corporation's  programs,  including
 allocating  budget and staff to establish and maintain an aggressive and
 extensive marketing program of the corporation's program  of  assistance
 to small and medium sized businesses, providing for specific outreach to
 minority  and  women  owned  enterprises,  and entering into cooperative
 relationships with local chambers of commerce, local  development  agen-
 cies, local development corporations and other community based financial
 intermediaries  as set forth in subdivision three of this section; (iii)
 establish and operate, or affiliate with  a  small  business  investment
 company  and a specialized small business investment company; [and] (iv)
 establish a pilot export financing program,  using  personnel  from  the
 private  sector,  to evaluate whether the corporation can play a signif-
 icant role in the growth of the export industry in  the  state  AND  (V)
 ESTABLISH  A  PROGRAM  IN  COOPERATION WITH THE EMPIRE STATE DEVELOPMENT
 CORPORATION THAT SHALL FOCUS  ON  SMALL  BUSINESSES  LOCATED  IN  HIGHLY
 DISTRESSED  AREAS AND MINORITY BUSINESS ENTERPRISES AS SUCH DESIGNATIONS
 ARE DEFINED BY THE REGULATIONS OF THE NEW YORK STATE  URBAN  DEVELOPMENT
 CORPORATION  ACT,  THROUGH WHICH THE CORPORATION SHALL BE AUTHORIZED TO:
 (A) ACT AS THIRD-PARTY AGENT FOR THE CAPITAL ACCESS PROGRAM  ESTABLISHED
 BY  SECTION SIXTEEN-K OF SECTION ONE OF CHAPTER ONE HUNDRED SEVENTY-FOUR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD16150-01-2
 S. 9515                             2
 
 OF THE LAWS OF NINETEEN  HUNDRED  SIXTY-EIGHT,  CONSTITUTING  THE  URBAN
 DEVELOPMENT  CORPORATION  ACT;  (B) PROCESS, FUND AND APPROVE QUALIFYING
 PROGRAM LOANS MADE BY  THE  CORPORATION  OR  A  PARTICIPATING  FINANCIAL
 INSTITUTION  PURSUANT TO SECTION SIXTEEN-K OF SECTION ONE OF CHAPTER ONE
 HUNDRED SEVENTY-FOUR  OF  THE  LAWS  OF  NINETEEN  HUNDRED  SIXTY-EIGHT,
 CONSTITUTING  THE  URBAN  DEVELOPMENT  CORPORATION ACT; (C) MAINTAIN AND
 SERVICE A PORTFOLIO OF QUALIFYING LOANS MADE  PURSUANT  TO  THE  CAPITAL
 ACCESS  PROGRAM;  AND  (D) ENGAGE IN OUTREACH AND MARKETING TO FINANCIAL
 INSTITUTIONS TO INCREASE AWARENESS OF THE PROGRAM ESTABLISHED UNDER THIS
 SUBPARAGRAPH. The corporation shall undertake  the  programs  enumerated
 herein  at  such  times  as  its  board of directors determines that the
 corporation's capital base and available funds are adequate  to  support
 the  operation  of  such  program. The programs enumerated herein may be
 modified by the corporation as may be necessary  to  meet  the  changing
 needs of the state's economy, as determined by the board of directors.
   §  2.  Paragraph  (b) of subdivision 3 of section 16-k of section 1 of
 chapter 174 of the laws of 1968, constituting the New York  state  urban
 development  corporation  act,  as amended by chapter 103 of the laws of
 2011, is amended to read as follows:
   (b) Any contract entered into pursuant to subparagraph  (i)  of  para-
 graph (a) of this subdivision shall:
   (i)  be  for  a  period of two years and shall be renewed for an addi-
 tional two year period subject to requirements of subparagraph  (ii)  of
 paragraph (a) of this subdivision; [and]
   (ii) provide for compensation for expenses incurred by the third party
 agent  in  connection  with  its  services  as  agent and for such other
 services as the corporation may  deem  appropriate  including,  but  not
 limited  to  the use of the premises, personnel and personal property of
 the third party agent;
   (III) NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO THE CONTRARY, USE
 THE UNDERWRITING STANDARDS PROVIDED FOR  IN  SUBDIVISION  FOUR  OF  THIS
 SECTION TO EVALUATE APPLICATIONS FOR LOANS PURSUANT TO THE PROGRAM FILED
 BY  A  MINORITY BUSINESS ENTERPRISE, OR A SMALL BUSINESS WHOSE PRINCIPAL
 PLACE OF BUSINESS IS IN A HIGHLY DISTRESSED AREA;
   (IV) PROVIDE FOR THE DEVELOPMENT OF AN INTEGRATED WEB PORTAL  FOR  THE
 THIRD-PARTY  AGENT WHICH ENABLES ACCESS BY MINORITY BUSINESS ENTERPRISES
 AND SMALL BUSINESSES IN HIGHLY DISTRESSED AREAS TO OBTAIN INFORMATION ON
 THE CAPITAL ACCESS LOAN PROGRAM INCLUDING THE ABILITY TO  MAKE  APPLICA-
 TION AND TO RECEIVE APPROVAL FOR SUCH LOAN ONLINE; AND
   (V)  PROVIDE  FUNDING  FOR  MARKETING  TO  THE THIRD-PARTY AGENT TO BE
 DIRECTED TO POTENTIAL LOAN RECIPIENTS AND TO FINANCIAL  INSTITUTIONS  TO
 INCREASE  AWARENESS  PARTICIPATION  AND  REFERRALS TO THE CAPITAL ACCESS
 LOAN PROGRAM.
   § 3. Section 16-k of section 1 of chapter 174 of  the  laws  of  1968,
 constituting  the  New  York state urban development corporation act, is
 amended by adding two new subdivisions 4 and 5 to read as follows:
   4. NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO  THE  CONTRARY,  THE
 DEPARTMENT  OF  FINANCIAL  SERVICES, THE EMPIRE STATE DEVELOPMENT CORPO-
 RATION AND THE NEW YORK BUSINESS DEVELOPMENT CORPORATION  SHALL  JOINTLY
 ESTABLISH UNDERWRITING STANDARDS TO ASSIST MINORITY BUSINESS ENTERPRISES
 AND  SMALL  BUSINESSES  IN HIGHLY DISTRESSED AREAS. IN ADDITION TO OTHER
 FACTORS, SUCH STANDARDS SHOULD INCORPORATE VERIFIABLE ALTERNATIVE  INDI-
 CATIONS  OF  CREDITWORTHINESS  PRESENTED OR MADE AVAILABLE BY THE APPLI-
 CANT.
   5. PURSUANT TO SUBPARAGRAPH (V) OF PARAGRAPH (B) OF SUBDIVISION  1  OF
 SECTION 212 OF THE BANKING LAW, THE NEW YORK BUSINESS DEVELOPMENT CORPO-
 S. 9515                             3
 
 RATION  AND THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL ENTER INTO AN
 AGREEMENT PURSUANT TO WHICH THE NEW  YORK  BUSINESS  DEVELOPMENT  CORPO-
 RATION  SHALL AUTHORIZE, MAINTAIN AND ADMINISTER THE PROGRAM ESTABLISHED
 IN SUCH SUBPARAGRAPH.
   § 4. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.