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


Section 9-F Special assistance for small and medium-sized businesses which are adversely affected by the absence of eligible reservists ordered to ac...

Urban Development Corporation Act 174/68 (UDA)

Special assistance for small and medium-sized businesses which are adversely affected by the absence of eligible reservists ordered to active duty with the armed forces. (1) In addition to loans for small and medium-sized business assistance projects authorized by this act, the corporation is hereby authorized to make loans to assist a small or medium-sized business concern which is likely to suffer economic injury as the result of the owner, manager or key employee of such small or medium-sized business concern who is an eligible reservist being ordered to active military duty during a period of military conflict. The corporation shall determine the term and interest rate of such loans except that no loan shall exceed one hundred fifty thousand dollars, no loan shall have an interest rate greater than five percent and no loan shall have a term that exceeds a number of years which in the opinion of the corporation is necessary for the small or medium-sized business concern to recover financially from the absence of such eligible reservist. Any such loan shall be secured by a security agreement chattel paper, loan agreement or such other instruments or documents deemed necessary or convenient by the corporation to secure the loan. In determining the economic need for a loan authorized by this section, the corporation shall consider the decline in income or gross receipts of the business during the period of active military duty of the eligible reservist. Such loans shall be made in an expeditious manner to enable the small or medium-sized business concern to recover forthwith from such absence. Loans made pursuant to this section shall be used for working capital by the small or medium-sized business concern. The corporation shall render such other assistance and services as it deems advisable and proper in connection with such loans and the purpose therefor.

  (2)(a) With respect to any loan granted to a small or medium-sized business concern pursuant to this act, the corporation may temporarily suspend the repayment obligation of any small or medium-sized business concern if any person liable thereon is or if any owner, manager or key employee is an eligible reservist called to active duty in the military service subsequent to the disbursement of the proceeds of such loan and such business concern has suffered or is likely to suffer economic injury as a result of such order. The suspension, if approved, shall be effective on the date the corporation is notified that the eligible reservist has commenced active duty status or, at the election of the corporation it shall be made effective at any time subsequent to the date such eligible reservist entered active duty status, and shall continue for ninety days after such person is discharged or released from active duty.

  (b) Within thirty days after the return to non-active duty status of any person to whom this subdivision may apply, the corporation shall arrange a meeting with the affected small or medium-sized business to arrange repayment of the loan. The corporation is authorized to extend the terms of any loan or to set a repayment schedule for such loans made for a period of up to one year for each sixty days of active duty, but not to exceed five years.

  (c) If the corporation determines that such small or medium-sized business concern meets the criteria of this subdivision, it may, in its discretion, reduce or eliminate the assistance provided herein if it determines such business has the financial ability to meet the terms and conditions of the obligation without substantially disrupting business operations. Any such determination shall be made only after affording the applicant the opportunity to present information in person or through others in support of the request for assistance.

  (3) Nothing in this section shall preclude a small or medium-sized business concern which is ineligible for assistance pursuant to the provisions of this section from qualifying for any other assistance pursuant to article 13 of the military law or the Federal Soldiers' and Sailors' Civil Relief Act of 1940, as amended.

  (4) The corporation is directed to liberally construe the provisions of this section to benefit eligible small and medium-sized business concerns in recovering from any demonstrated economic loss caused by the active military service of the eligible reservist.