S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   965

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by M. of A. KELLNER -- read once and referred to the Commit-
  tee on Small Business

AN ACT to amend the New York state urban development corporation act, in
  relation to requiring the small business revolving loan fund to  issue
  a  certain  percentage of its remaining principal or further appropri-
  ations to micro loans and micro seed loans

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision 3 of section 16-t of section 1 of chapter 174
of the laws of 1968, constituting the New York state  urban  development
corporation  act,  as  added by section 1 of part N of chapter 59 of the
laws of 2010, is amended to read as follows:
  3. Program loans to small businesses shall be targeted and marketed to
minority and women-owned enterprises and other small businesses that are
having difficulty accessing traditional credit markets. Program loans to
small businesses shall be used for the creation and retention  of  jobs,
as  defined  by the corporation, including: (a) working capital; (b) the
acquisition and/or improvement of real property; (c) the acquisition  of
machinery and equipment, property or improvement; or (d) the refinancing
of  debt  obligations. There shall be [two] THREE categories of loans to
small businesses:  A MICRO SEED LOAN THAT SHALL HAVE A PRINCIPAL  AMOUNT
LESS  THAN FIVE THOUSAND DOLLARS; a micro loan that shall have a princi-
pal amount [that is] NOT LESS THAN FIVE THOUSAND DOLLARS AND  less  than
twenty-five thousand dollars; and a regular loan that shall have a prin-
cipal  amount  not  less  than twenty-five thousand dollars.  THE CORPO-
RATION SHALL PROVIDE THAT NOT LESS THAN FIFTEEN PERCENT OF ANY REMAINING
PRINCIPAL OR FURTHER APPROPRIATION OF THE FUND ON OR AFTER  JULY  FIRST,
TWO  THOUSAND  THIRTEEN  IS  SET ASIDE FOR MICRO LOANS.  FURTHERMORE THE
CORPORATION SHALL PROVIDE THAT NOT LESS THAN FIVE PERCENT OF ANY REMAIN-
ING PRINCIPAL OR FURTHER APPROPRIATION OF THE  FUND  ON  OR  AFTER  JULY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD01898-01-3

A. 965                              2

FIRST, TWO THOUSAND THIRTEEN IS SET ASIDE FOR MICRO SEED LOANS. IN YEARS
AFTER  JULY  FIRST,  TWO  THOUSAND  THIRTEEN, WHEN THERE IS NO REMAINING
PRINCIPAL OR THERE IS NO ADDITIONAL APPROPRIATION, NOT LESS THAN FIFTEEN
PERCENT  OF  ANY  GENERATED  REVENUE SHALL BE SET ASIDE FOR MICRO LOANS.
FURTHERMORE IN YEARS AFTER JULY FIRST, TWO THOUSAND THIRTEEN, WHEN THERE
IS NO REMAINING PRINCIPAL OR THERE IS NO ADDITIONAL  APPROPRIATION,  NOT
LESS  THAN  FIVE PERCENT OF ANY GENERATED REVENUE SHALL BE SET ASIDE FOR
MICRO SEED LOANS. Prior to receiving program funds, the  lending  organ-
ization  must  certify  to  the corporation that such loan complies with
this section and rules and regulations promulgated for the  program  and
that  the lending organization has performed its obligations pursuant to
and is in compliance with this section,  the  program  rules  and  regu-
lations  and all agreements entered into between the corporation and the
lending organization. The program  funds  amount  used  by  the  lending
organization  to  fund  a  program applicant loan shall not be more than
fifty percent of the principal amount of such loan.  The  program  funds
amount used by the lending organization to fund a program applicant loan
shall  not  be  greater  than  one  hundred  [and]  twenty-five thousand
dollars.
  S 2. This act shall take effect immediately.