NY State Senate Bill 2023-S6490

Senate Bill S6490

2023-2024 Legislative Session

Provides that microbusinesses in New York are eligible for small business revolving loans and the linked deposit interest rate reductions

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Current Bill Status - In Senate Committee Commerce, Economic Development And Small Business Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to commerce, economic development and small business
Apr 24, 2023	referred to commerce, economic development and small business

co-Sponsors

2023-S6490 (ACTIVE) - Details

Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Economic Development Law
Laws Affected:: Add §131-a, Ec Dev L; amd §213, St Fin L; amd §16-t, UDC Act
Versions Introduced in Other Legislative Sessions:: 2011-2012: S7556
2013-2014: S546
2015-2016: S643
2017-2018: S1802
2019-2020: S1543
2021-2022: S3867

2023-S6490 (ACTIVE) - Summary

Provides that microbusinesses in New York are eligible for small business revolving loans and the linked deposit interest rate reductions.

2023-S6490 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6490

SPONSOR: KENNEDY
 
TITLE OF BILL:

An act to amend the economic development law, the state finance law and
the New York state urban development corporation act, in relation to
making small business loans available to microbusinesses

 
PURPOSE::

To provide that microbusinesses in New York are eligible for small busi-
ness revolving loans and the linked deposit interest rate reductions.

 
SUMMARY OF PROVISIONS::

Section 1 adds a new section 131-a to the economic development law to
include the definition of a microbusiness as one that is resident in New
York state, independently owned and operated, not dominant in its field,
and employs under five persons.

Section 2 amends paragraph f subdivision 11 of section 213 of the state

finance law, as added by chapter 705 of the laws of 1993, by adding a
new paragraph h stating that a microbusiness (that has been in operation
for 5 years and that is located in an empire zone, empowerment zone, a
highly distressed area of renewal community) is an eligible business for
the purpose of the excelsior linked deposit program.

Section 3 amends section 16-t of section 1 of chapter 174 of the laws of
1968 by adding a new subdivision 16 to provide that $5 million in
program funds be available for micro-loans to microbusinesses, which
will be eligible to apply in the same manner as other small businesses.

 
JUSTIFICATION::

Microbusinesses have been estimated to constitute around 90% of all
businesses within New York State by the Association for Enterprise
Opportunity. A microbusiness is a business that has 5 or fewer employ-
ees. Given their nature, it is often difficult for microbusiness owners
to access capital through lending institutions.  A microbusiness can
consist of a wide variety of businesses that run from 'mom and pop'
shops to start-up tech companies. These businesses are both the backbone
and the future of our economy.

Given their prevalence and importance, this bill adds the definition of
microbusinesses to the law in order to allow for their inclusion in
successful state programs, including the linked deposit program and
small business revolving loan fund.

 
PRIOR LEGISLATIVE HISTORY::

2021-22: S.3867

2019-20: S.1543 Referred to Commerce, Economic Development, and Small
Business

2017-18: S.1802 Referred to Commerce, Economic Development, and Small
Business

2015-16: Referred to Commerce, Economic Development, and Small Business

2014: S.546 Referred to Commerce, Economic Development, and Small Busi-
ness

2012: S.7556 Referred to Commerce, Small Business Economic Development

 
FISCAL IMPLICATIONS::

No additional cost to the state is estimated.

 
EFFECTIVE DATE::

This act shall take effect immediately.

2023-S6490 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6490
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              April 24, 2023
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment and Small Business
 
 AN  ACT to amend the economic development law, the state finance law and
   the New York state urban development corporation act, in  relation  to
   making small business loans available to microbusinesses
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The economic development law is amended  by  adding  a  new
 section 131-a to read as follows:
   § 131-A. DEFINITION OF A MICROBUSINESS. FOR THE PURPOSES OF THIS CHAP-
 TER,  A  MICROBUSINESS SHALL BE DEEMED TO BE A BUSINESS THAT IS RESIDENT
 IN THIS STATE, INDEPENDENTLY OWNED AND OPERATED,  NOT  DOMINANT  IN  ITS
 FIELD AND EMPLOYS UNDER FIVE PERSONS.
   §  2.  Paragraphs  (h) and (h) of subdivision 11 of section 213 of the
 state finance law, paragraph (h) as added by section 1  of  part  BB  of
 chapter  58  of  the laws of 2022, and paragraph (h) as added by chapter
 587 of the laws of 2022, are amended and a new paragraph (j) is added to
 read as follows:
   (h) a community development financial institution[.]; OR
   [(h)](I) any certified service-disabled veteran-owned business  enter-
 prises  seeking  financing necessary to carry out a procurement contract
 with an agency or authority or other entity  of  the  state  or  federal
 government[.]; OR
   (J) A MICROBUSINESS, AS DEFINED BY SECTION ONE HUNDRED THIRTY-ONE-A OF
 THE  ECONOMIC DEVELOPMENT LAW, THAT HAS BEEN IN OPERATION FOR FIVE YEARS
 AND THAT IS LOCATED IN  AN  EMPIRE  ZONE,  EMPOWERMENT  ZONE,  A  HIGHLY
 DISTRESSED AREA OR RENEWAL COMMUNITY.
   §  3.  Section  16-t  of section 1 of chapter 174 of the laws of 1968,
 constituting the urban development corporation act is amended by  adding
 a new subdivision 17 to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05061-01-3

 S. 6490                             2
 
   17.  NOTWITHSTANDING  ANYTHING  TO  THE  CONTRARY IN THIS SECTION, THE
 CORPORATION SHALL PROVIDE AT LEAST FIVE MILLION DOLLARS IN PROGRAM FUNDS
 PURSUANT TO THIS SECTION TO LENDING ORGANIZATIONS  FOR  THE  PURPOSE  OF
 MAKING MICRO-LOANS TO MICROBUSINESSES, AS DEFINED BY SECTION ONE HUNDRED
 THIRTY-ONE-A  OF  THE ECONOMIC DEVELOPMENT LAW. MICROBUSINESSES SHALL BE
 ELIGIBLE TO APPLY FOR FUNDING IN THE SAME MANNER AS  OTHER  SMALL  BUSI-
 NESSES PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
   § 4. This act shall take effect immediately.

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Senate Bill S6490

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Sponsored By

Timothy M. Kennedy