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This entry was published on 2014-09-22
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SECTION 38
Small business and minority-owned and women-owned business enterprises transportation capital assistance and guaranteed loan program
Urban Development Corporation Act 174/68 (UDA) CHAPTER INTRO
§ 38. Small business and minority-owned and women-owned business
enterprises transportation capital assistance and guaranteed loan
program. 1. To provide financial assistance to small business and
minority-owned and women-owned business enterprises engaged in
government sponsored, transportation related construction projects, the
corporation shall establish a small business and minority-owned and
women-owned business enterprise transportation capital assistance
revolving loan fund which shall provide loans or loan guarantees to
small business and minority-owned and women-owned business enterprises.
For purposes of this section: (a) the term small business shall have the
same meaning as defined in section one hundred thirty-one of the
economic development law and (b) the term project shall mean a project
of state agency or authority that sponsors transportation related
construction projects and participates in this program and any
definition of project contained elsewhere in this act shall not apply.

2. Such loans, or loan guarantees for loans made by federally and
state chartered credit institutions, financial institutions, and
federally insured banking organizations to small business and
minority-owned and women-owned business enterprises, shall be used to
(a) enable such businesses, through the acquisition, leasing or
improvement of real property, machinery or equipment, or through the
provision of working capital to secure service, commodity or
construction contracts; (b) restore working capital to such businesses
which have successfully completed work under a contract but whose
liquidity has been adversely affected by problems resulting from delayed
payments; and (c) ensure the completion of the work associated with a
governmental service, commodity or construction contract in order to
prevent default on such contract.

3. (a) To be eligible for such loans or loan guarantees (i) a
minority-owned or women-owned business enterprise must be certified as a
minority-owned or women-owned business enterprise pursuant to article
15-A of the executive law; and (ii) a small business or a minority-owned
or women-owned business enterprise shall have a contract or sub-contract
to provide goods or services related to a government sponsored,
transportation related construction project.

(b) Only such business enterprises referred to the corporation by a
written application of a state agency or authority that sponsors
transportation related construction projects shall be eligible for
program assistance. Such assistance shall be provided to such an
enterprise only in connection with its performance as a contractor or
sub-contractor on a specific transportation related project of the
referring agency or authority. In order for such an agency or authority
to refer such enterprises to the corporation, such agency or authority
shall enter into a master agreement with the corporation covering
procedures and requirements for providing program assistance. The
corporation shall determine whether or not to approve such an agency's
or authority's written application for program assistance to such a
business within twenty business days of the corporation's receipt of
such application. If it approves the application, the corporation will
provide assistance pursuant to the applicable master agreement.

4. The corporation shall give preference to minority-owned and
women-owned business enterprises in making such loans and loan
guarantees and shall establish such other criteria as it may deem
necessary for this program and for any required amount that shall be
held in reserve for any guarantees made under this program.

5. Notwithstanding any inconsistent provision of law, general, special
or local, including pursuant to capital projects budget appropriations
or reappropriations, where applicable, the corporation is hereby
authorized to enter into such agreements as may be necessary for the
operation and administration of a small business and minority-owned and
women-owned business enterprises transportation capital assistance and
guaranteed loan program.

6. The corporation is authorized to establish a revolving loan fund
account into which funds may be received and from which funds may be
expended for the aforementioned purposes.

7. The provisions of section ten and subdivision two of section
sixteen of this act shall not apply to assistance provided under this
program.