NY State Senate Bill 2017-S3218

Senate Bill S3218

2017-2018 Legislative Session

Allows businesses to use funds received from the minority and women-owned business development and lending program for the purpose of refinancing existing debt

download bill text pdf

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to corporations, authorities and commissions
Jan 20, 2017	referred to corporations, authorities and commissions

2017-S3218 (ACTIVE) - Details

See Assembly Version of this Bill:: A491
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Amd §16-c, UDC Act
Versions Introduced in Other Legislative Sessions:: 2011-2012: A8037
2013-2014: A4350
2015-2016: S5737, A4212, A7719
2019-2020: S2296, A1819
2021-2022: S571, A6420

2017-S3218 (ACTIVE) - Summary

Allows businesses to use funds received from minority- and women-owned business development and lending program for the purpose of refinancing existing debt.

2017-S3218 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3218

 TITLE OF BILL :  An act to amend the urban development corporation
act, in relation to allowing businesses to use funds received from the
minority and women-owned business development and lending program for
the purpose of refinancing existing debt

 PURPOSE :

Allows businesses to use funds received from minority and women-owned
business development and lending program for the purpose of
refinancing existing debt.

 SUMMARY OF PROVISIONS :

Section 1. Subparagraphs (vi) and (vii) of paragraph (c) of
subdivision 1 of section 16-c of section 1 of chapter 174 of the laws
of 1968, constituting the urban development corporation act, as added
by chapter 169 of the law of 1994, are amended.

 EXISTING LAW :

The state Minority and Women Owned Business Enterprises goals do not
currently apply to municipalities.

 JUSTIFICATION :

Currently, the minority and women-owned business development and
lending program does not allow small business to do debt refinancing.
Modifying this existing loan program would permit a small business to
refinance existing debt on more favorable terms, which would allow
these businesses to improve their cash flow. Too often, commercial
credit cards are the first and only means for small businesses to
access credit. And while credit cards provide relatively easy and
convenient credit, interest rates are substantially higher (often
topping @20%) than loans available through banks, credit unions, or
CDFIs. For example, a small business with $20,000 in credit card debt
could expect to pay $4,000 or more a year in interest on credit card
debt. However, if the business could refinance that debt under one of
the State's existing micro-loan programs, the interest payments could
fall to as little as $1,200 to $1,600, saving the business nearly
$3,000 a year.

(www.nysmalllbiztaskforce.org)

 LEGISLATIVE HISTORY :

2011: Referred to Economic Development;
2012: Referred to Economic Development;
2013-2014: Referred to Economic Development;

 FISCAL IMPLICATIONS :

None

 LOCAL FISCAL IMPLICATIONS :

None

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S3218 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3218
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2017
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN  ACT  to  amend the urban development corporation act, in relation to
   allowing businesses to  use  funds  received  from  the  minority  and
   women-owned  business  development and lending program for the purpose
   of refinancing existing debt
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subparagraphs (vi) and (vii) of paragraph (c) of subdivi-
 sion 1 of section 16-c of section 1 of chapter 174 of the laws of  1968,
 constituting  the  urban  development  corporation  act,  as  amended by
 section 1 of part AA of chapter 55 of the laws of 2014, are  amended  to
 read as follows:
   (vi) overnight lodging facilities[;
   (vii)  refinancing  of  debt  or  equity  invested in an enterprise or
 project].
   § 2. Subparagraphs (vii) and (viii) of paragraph (d) of subdivision  1
 of section 16-c of section 1 of chapter 174 of the laws of 1968, consti-
 tuting  the  urban  development  corporation  act, subparagraph (vii) as
 amended and subparagraph (viii) as added by section  1  of  part  AA  of
 chapter  55 of the laws of 2014, are amended and a new subparagraph (ix)
 is added to read as follows:
   (vii) establish a comprehensive technical assistance program in  coop-
 eration  with the department of economic development to assist minority-
 and women-owned businesses and potential minority  and  women-entrepren-
 eurs; [and]
   (viii) notwithstanding any provision of law to the contrary, establish
 a minority- and women-owned business investment fund to provide critical
 financial  support  to  foster the development of new and emerging ideas
 and products of minority- and women-owned business enterprises  as  well
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02001-01-7

 S. 3218                             2
 
 as  to  promote the long-term financial performance and success of early
 stage enterprises that are  minority-  and  women-owned  start-ups.  The
 selection  of  an  eligible  applicant and beneficiary companies for the
 minority-  and women-owned business investment fund shall be selected by
 the process established pursuant to subdivisions  two  through  four  of
 section  sixteen-u of this act. Minority- or women-owned business enter-
 prises who  participate  in  such  minority-  and  women-owned  business
 investment fund under this subdivision shall not be precluded from qual-
 ifying  for  any other assistance, grant or loan made available from the
 state[.]; AND
   (IX) PROVIDE FOR THE REFINANCING OF DEBT  OR  EQUITY  INVESTED  IN  AN
 ENTERPRISE OR PROJECT.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 have become a law; provided, however, that  effective  immediately,  the
 addition,  amendment  and/or  repeal of any rule or regulation necessary
 for the implementation of this act on its effective date are  authorized
 and directed to be made and completed on or before such effective date.

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