1. The Laws of New York
  2. Unconsolidated Laws
  3. Urban Development Corporation Act 174/68


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)

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.