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

                                   643

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  Sens. KENNEDY, AVELLA -- read twice and ordered printed,
  and when printed to be committed to the Committee on Commerce, Econom-
  ic Development and Small Business

AN ACT to amend the economic development law, the state finance law  and
  the  New  York state urban development corporation act, in relation to
  making small business loans available to microbusinesses

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

  Section  1.  The  economic  development law is amended by adding a new
section 131-a to read as follows:
  S 131-A. DEFINITION OF A MICROBUSINESS. FOR THE PURPOSES OF THIS CHAP-
TER, A MICROBUSINESS SHALL BE DEEMED TO BE A BUSINESS THAT  IS  RESIDENT
IN  THIS  STATE,  INDEPENDENTLY  OWNED AND OPERATED, NOT DOMINANT IN ITS
FIELD AND EMPLOYS UNDER FIVE PERSONS.
  S 2. Paragraph (f) and subparagraph 6 of paragraph (g) of  subdivision
11  of  section  213 of the state finance law, paragraph (f) as added by
chapter 705 of the laws of 1993, subparagraph  6  of  paragraph  (g)  as
added  by  section  1  of part HH of chapter 59 of the laws of 2013, are
amended and a new paragraph (h) is added to read as follows:
  (f) any service business that is independently owned and operated,  is
not  dominant  in  its  field, employs one hundred or fewer persons on a
full-time basis within the state, and is seeking financing  through  the
program  for  a project that will result in the retention or creation of
permanent private sector jobs within the state, other  than  a  business
that  sells a service rendered at a facility personally by an individual
for another individual, directly, without the intervention  of  a  third
party,  or  a  professional  service  business  such  as  health, legal,
accounting, engineering, or architectural services[.]; OR
  (6) small scale systems integration and packaging[.]; OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03248-01-5
              

S. 643                              2

  (H) A MICROBUSINESS, AS DEFINED BY SECTION ONE HUNDRED THIRTY-ONE-A OF
THE ECONOMIC DEVELOPMENT LAW, THAT HAS BEEN IN OPERATION FOR FIVE  YEARS
AND  THAT  IS  LOCATED  IN  AN  EMPIRE  ZONE, EMPOWERMENT ZONE, A HIGHLY
DISTRESSED AREA OR RENEWAL COMMUNITY.
  S  3.  Section  16-t  of section 1 of chapter 174 of the laws of 1968,
constituting the urban development corporation act is amended by  adding
a new subdivision 16 to read as follows:
  16.  NOTWITHSTANDING  ANYTHING  TO  THE  CONTRARY IN THIS SECTION, THE
CORPORATION SHALL PROVIDE AT LEAST FIVE MILLION DOLLARS IN PROGRAM FUNDS
PURSUANT TO THIS SECTION TO LENDING ORGANIZATIONS  FOR  THE  PURPOSE  OF
MAKING MICRO-LOANS TO MICROBUSINESSES, AS DEFINED BY SECTION ONE HUNDRED
THIRTY-ONE-A  OF  THE ECONOMIC DEVELOPMENT LAW. MICROBUSINESSES SHALL BE
ELIGIBLE TO APPLY FOR FUNDING IN THE SAME MANNER AS  OTHER  SMALL  BUSI-
NESSES PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
  S 4. This act shall take effect immediately.