S T A T E O F N E W Y O R K
________________________________________________________________________
7068--A
2021-2022 Regular Sessions
I N S E N A T E
May 26, 2021
___________
Introduced by Sens. BROOKS, SANDERS -- read twice and ordered printed,
and when printed to be committed to the Committee on Finance -- recom-
mitted to the Committee on Finance 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 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 213 of the state finance law is amended by adding a
new subdivision 25 to read as follows:
25. "CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE"
MEANS ANY SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE AS PROVIDED
FOR IN SECTION THREE HUNDRED SIXTY-NINE-H OF THE EXECUTIVE LAW AND
CERTIFIED PURSUANT TO SECTION THREE HUNDRED SIXTY-NINE-I OF THE EXECU-
TIVE LAW.
§ 2. Paragraphs (f) and (g) of subdivision 11 of section 213 of the
state finance law, paragraph (f) as added by chapter 705 of the laws of
1993 and paragraph (g) as added by section 1 of part HH of chapter 59 of
the laws of 2013, are amended and a new paragraph (h) is added to read
as follows:
(f) any service business that is independently owned and operated, is
not dominant in its field, employs one hundred or fewer persons on a
full-time basis within the state, and is seeking financing through the
program for a project that will result in the retention or creation of
permanent private sector jobs within the state, other than a business
that sells a service rendered at a facility personally by an individual
for another individual, directly, without the intervention of a third
party, or a professional service business such as health, legal,
accounting, engineering, or architectural services[.]; OR
(g) a qualifying technology or innovation business which business
employs one hundred or fewer employees within the state on a full-time
basis and engages in:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11424-03-1
S. 7068--A 2
(1) biotechnologies, which shall be defined as technologies involving
the scientific manipulation of living organisms, especially at the
molecular and/or the sub-molecular genetic level, to produce products
conducive to improving the lives and health of plants, animals, and
humans; and the associated scientific research, pharmacological, mechan-
ical, and computational applications and services connected with these
improvements;
(2) information and communication technologies, equipment and systems
that involve advanced computer software and hardware, visualization
technologies, and human interface technologies;
(3) advanced materials and processing technologies that involve the
development, modification, or improvement of one or more materials or
methods to produce devices and structures with improved performance
characteristics or special functional attributes, or to activate, speed
up, or otherwise alter chemical, biochemical, or medical processes;
(4) electronic and photonic devices and components for use in produc-
ing electronic, optoelectronic, mechanical equipment and products of
electronic distribution with interactive media content;
(5) energy efficiency, renewable energy and environmental technolo-
gies, products, devices and services; or
(6) small scale systems integration and packaging[.]; OR
(H) ANY CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES
SEEKING FINANCING NECESSARY TO CARRY OUT A PROCUREMENT CONTRACT
WITH AN AGENCY OR AUTHORITY OR OTHER ENTITY OF THE STATE OR FEDERAL
GOVERNMENT.
§ 3. Paragraph (e) of subdivision 12 of section 213 of the state
finance law, as added by chapter 705 of the laws of 1993, is amended and
a new paragraph (f) is added to read as follows:
(e) for certified minority-and women-owned businesses, projects to
provide financing necessary to carry out a procurement contract with an
agency or authority or other entity of the state or federal govern-
ment[.]; OR
(F) FOR CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES,
PROJECTS TO PROVIDE FINANCING NECESSARY TO CARRY OUT A PROCUREMENT
CONTRACT WITH AN AGENCY OR AUTHORITY OR OTHER ENTITY OF THE STATE OR
FEDERAL GOVERNMENT.
§ 4. Subdivision 1 of section 218 of the state finance law, as amended
by section 1 of part U of chapter 58 of the laws of 2012, is amended to
read as follows:
1. Linked loans made to certified businesses in empire zones or to
eligible businesses in highly distressed areas or to eligible businesses
that are defined in paragraph (b-1) of subdivision eleven of section two
hundred thirteen of this article that are located in a renewal community
or defined in paragraph (b-2) of such subdivision that are located in an
empowerment zone or defined in paragraph (b-3) of such subdivision that
are located in an enterprise community, respectively for eligible
projects defined in paragraph (c) of subdivision twelve of section two
hundred thirteen of this article OR TO SERVICE-DISABLED VETERAN-OWNED
BUSINESS ENTERPRISES FOR AN ELIGIBLE PROJECT DEFINED IN PARAGRAPH (F) OF
SUBDIVISION TWELVE OF SECTION TWO HUNDRED THIRTEEN OF THIS ARTICLE or to
minority- or women-owned business enterprises for an eligible project
defined in paragraph (e) of subdivision twelve of section two hundred
thirteen of this article or to a defense industry manufacturer for a
project defined in paragraph (d) of subdivision twelve of section two
hundred thirteen of this article or to an eligible business pursuant to
paragraph (a) of subdivision eleven of section two hundred thirteen of
S. 7068--A 3
this article that produces products defined in subdivision two of
section three hundred one of the agriculture and markets law for an
eligible project as defined in paragraph (b) of subdivision twelve of
section two hundred thirteen of this article shall bear interest at a
fixed rate equal to three percentage points below the fixed interest
rate the lender would have charged for the loan in the absence of a
linked deposit based on its usual credit considerations. All other
linked loans shall bear interest at a fixed rate equal to two percentage
points below the fixed interest rate the lender would have charged for
the loan in the absence of a linked deposit based on its usual credit
considerations. Lenders shall certify to the commissioner of economic
development that the rate to be charged on a linked loan is two percent-
age points or three percentage points, as the case may be, below the
interest rate the lender would have charged for the loan in the absence
of a linked deposit.
§ 5. Section 220 of the state finance law, as added by section 2 of
part H of chapter 60 of the laws of 2011, is amended to read as follows:
§ 220. Renewal of linked deposit. A lender may, on behalf of a borrow-
er, apply to the commissioner of economic development to request a
renewal of the linked deposit for an additional four year period to
correspond with a second four year period of a borrower's linked loan.
The commissioner may grant such application if the commissioner deter-
mines that the borrower, during the second four year period of the
linked loan, will create additional industrial modernization benefits or
additional export trade benefits or additional jobs. If the commissioner
of economic development grants such application, the commissioner shall
notify the authorized depositor who made the linked deposit that the
commissioner has determined that the application satisfies the require-
ments of this article and shall request the authorized depositor to
continue the linked deposit with the lender for an additional four year
period in accordance with section ninety-eight-a of this chapter and
with the authorized depositor's established procedures. Such linked
deposit shall continue to be secured in accordance with the provisions
of section one hundred five of this chapter. The fixed interest rate on
the continued linked deposit shall be the linked deposit interest rate
in effect on the first day of the continuation of the linked deposit.
The authorized depositor and the lender shall enter into a written
deposit agreement governing the continuation of the linked deposit. The
interest rate payable on the linked loan for the second four year period
shall be, in the case of a certified business in an economic development
zone or an eligible business located in an economically distressed area
or federal empowerment zone or enterprise or renewal community or a
minority or women-owned business enterprise OR SERVICE-DISABLED VETER-
AN-OWNED BUSINESS ENTERPRISES, three percentage points below the inter-
est rate the lender would have charged for the loan in effect on the
first day of the continuation of the linked deposit; or in the case of a
business not located in an economic development zone or economically
distressed area or federal empowerment zone or enterprise or renewal
community or which is not a minority or women-owned business enterprise,
SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES, two percentage
points below the interest rate the lender would have charged for the
loan in the absence of a linked deposit in effect on the first day of
the continuation of the linked deposit.
§ 6. This act shall take effect immediately.
