S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4724
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 5, 2025
                                ___________
 
 Introduced  by M. of A. JONES -- read once and referred to the Committee
   on Local Governments
 
 AN ACT to amend the general municipal law, in relation to the powers  of
   industrial development agencies and certain loans and grants to eligi-
   ble entities
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 17 of section 858 of the general municipal law,
 as renumbered by chapter 356 of the laws of 1993, is renumbered subdivi-
 sion 19 and two new subdivisions 17 and 18 are added to read as follows:
   (17) TO PROVIDE LOANS IN ACCORDANCE WITH SECTION EIGHT HUNDRED  FIFTY-
 NINE-C OF THIS ARTICLE, TO ANY ELIGIBLE ENTITY AS DEFINED IN PARAGRAPH A
 OF  SUBDIVISION ONE OF SECTION EIGHT HUNDRED FIFTY-NINE-C OF THIS TITLE,
 PROVIDED SUCH LOAN IS MEMORIALIZED IN AN APPROPRIATE LOAN AGREEMENT  AND
 FURTHER  PROVIDED  THAT THE LOAN PROCEEDS ARE USED IN FURTHERANCE OF THE
 AGENCY'S CORPORATE PURPOSES;
   (18) TO PROVIDE GRANTS TO ANY ELIGIBLE ENTITY AS DEFINED IN  PARAGRAPH
 A  OF  SUBDIVISION  ONE  OF  SECTION  EIGHT HUNDRED FIFTY-NINE-C OF THIS
 TITLE, PROVIDED SAID GRANT  IS  MEMORIALIZED  IN  AN  APPROPRIATE  GRANT
 AGREEMENT  STIPULATING THE SERVICES TO BE PROVIDED IN FURTHERANCE OF THE
 AGENCY'S CORPORATE PURPOSES, TO BE PROVIDED IN A MANNER CONSISTENT  WITH
 UNIFORM CRITERIA, AS DEFINED IN SUBDIVISION TWO OF SECTION EIGHT HUNDRED
 FIFTY-NINE-C  OF THIS TITLE, SAID UNIFORM CRITERIA TO BE ESTABLISHED FOR
 THE EVALUATION AND SELECTION OF ELIGIBLE ENTITIES;
   § 2. The general municipal law is amended  by  adding  a  new  section
 859-c to read as follows:
   §  859-C.  UNIFORM  CRITERIA  FOR EVALUATION AND SELECTION OF ELIGIBLE
 ENTITIES FOR LOANS. 1. FOR THE PURPOSES OF THIS SECTION,  THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08490-01-5
 A. 4724                             2
 
              

   (A)  "ELIGIBLE  ENTITY"  SHALL MEAN A SMALL BUSINESS OR NOT-FOR-PROFIT
 WITH NOT MORE THAN FIFTY EMPLOYEES THAT IS  PHYSICALLY  LOCATED  IN  THE
 JURISDICTION OF THE APPLICABLE AGENCY.
   (B) "SMALL BUSINESS" MEANS A BUSINESS WITH NOT MORE THAN FIFTY EMPLOY-
 EES.
   2.  (A)  AN  AGENCY  SHALL  DEVELOP,  AND ADOPT BY RESOLUTION, UNIFORM
 CRITERIA FOR THE EVALUATION AND SELECTION OF AN ELIGIBLE  ENTITY  FOR  A
 LOAN  THROUGH THE FUNDING PROGRAM, SUCH CRITERIA MAY INCLUDE, BUT IS NOT
 LIMITED TO, WHETHER THE ELIGIBLE ENTITY:
   (I) IS A FINANCIALLY VIABLE ENTITY;
   (II) CONDUCTS BUSINESS IN THE AREA SERVED BY THE AGENCY;
   (III) IS CREDITWORTHY;
   (IV) HAS A PROPOSED PLAN  TO  USE  THE  FUNDS  RECEIVED  THROUGH  THIS
 PROGRAM; AND
   (V) WILL UNDERTAKE EFFORTS TO RETAIN JOBS.
   (B) ANY AGENCIES THAT SERVE WITHIN THE SAME MUNICIPALITIES SHALL COOR-
 DINATE THE DISTRIBUTION OF FUNDS TO A SINGLE ENTITY.
   (C)  NO ELIGIBLE ENTITY MAY RECEIVE A GRANT OR LOAN FROM MORE THAN ONE
 AGENCY PER PROJECT.
   (D) AN OUTSTANDING LOAN MUST BE PAID BACK IN FULL PRIOR TO  AN  AGENCY
 ISSUING AN ADDITIONAL LOAN AGREEMENT TO THE SAME ELIGIBLE ENTITY.
   2. PRIOR TO ADMINISTERING A LOAN PROGRAM, AN AGENCY SHALL DEVELOP, AND
 ADOPT  BY  RESOLUTION,  THE TERMS AND CONDITIONS OF SUCH LOANS, PROVIDED
 THAT THE AMOUNT OF ANY FUNDING PROVIDED PURSUANT TO THIS  SECTION  SHALL
 NOT  EXCEED  TWENTY-FIVE THOUSAND DOLLARS, AND FURTHER PROVIDED THAT THE
 TOTAL AMOUNT OF ALL FUNDS RECEIVED  BY  AN  ELIGIBLE  ENTITY  SHALL  NOT
 EXCEED TWENTY-FIVE THOUSAND DOLLARS.
   3.  EACH  AGENCY  SHALL  MAINTAIN RECORDS RELATED TO THE LOAN PROGRAM,
 INCLUDING A RECORD OF  THE  NUMBER  OF  LOANS  ISSUED  AND  OF  PAYMENTS
 RECEIVED,  THE  NUMBER  OF  LOANS  FULLY  REPAID, ANY OUTSTANDING LOANS,
 DEFAULTS AND BAD DEBTS, AND  INCLUDE  SUCH  INFORMATION  IN  THE  ANNUAL
 REPORT  REQUIRED  BY SECTION TWENTY-EIGHT HUNDRED OF THE PUBLIC AUTHORI-
 TIES LAW.
   4. ANY INTEREST DEFERRED OR NOT  CHARGED  RELATED  TO  A  LOAN  ISSUED
 PURSUANT  THE LOAN PROGRAM SHALL BE EXEMPT FROM ALL STATE TAXES THAT MAY
 BE APPLICABLE TO SUCH INTEREST AMOUNTS AS SUCH TAXES RELATE TO AN ELIGI-
 BLE ENTITY. AGENCIES SHALL DISCLOSE TO ELIGIBLE ENTITY BORROWERS IN LOAN
 DOCUMENTS THAT THERE MAY BE FEDERAL  TAX  CONSEQUENCES  TO  THE  PROGRAM
 LOANS.
   § 3. This act shall take effect immediately.