S T A T E   O F   N E W   Y O R K
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                                 10294--A
 
                           I N  A S S E M B L Y
 
                              April 15, 2020
                                ___________
 
 Introduced  by  M.  of  A. STIRPE, OTIS -- read once and referred to the
   Committee on Corporations, Authorities and  Commissions  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN ACT to amend the general municipal law, in relation to establishing a
   state disaster emergency loan program; and providing for the repeal of
   such provisions upon the expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 16 and 17 of section 858 of the general munic-
 ipal law, as added by chapter 1030 of the laws of 1969 and as renumbered
 by chapter 356 of the laws of 1993, are amended to read as follows:
   (16) To establish and re-establish its fiscal year; [and]
   (17) TO PROVIDE LOANS TO SMALL  BUSINESSES  OR  NOT-FOR-PROFIT  CORPO-
 RATIONS  AS  AUTHORIZED  IN  SECTION  EIGHT HUNDRED FIFTY-NINE-C OF THIS
 TITLE; AND
   (18) TO PROVIDE GRANTS TO SMALL BUSINESSES AND  NOT-FOR-PROFIT  CORPO-
 RATIONS, AS DEFINED IN SECTION EIGHT HUNDRED FIFTY-NINE-C OF THIS TITLE,
 FOR THE PURPOSE OF ACQUIRING PERSONAL PROTECTIVE EQUIPMENT OR INSTALLING
 FIXTURES NECESSARY TO PREVENT THE SPREAD OF NOVEL CORONAVIRUS, COVID-19,
 DURING  THE PERIOD IN WHICH EXECUTIVE ORDER TWO HUNDRED TWO OF TWO THOU-
 SAND TWENTY, AS AMENDED, IS IN EFFECT. IN ORDER TO  BE  ELIGIBLE  FOR  A
 GRANT  PURSUANT  TO THIS SUBDIVISION, A SMALL BUSINESS OR NOT-FOR-PROFIT
 CORPORATION MUST MEET THE REQUIREMENTS OF  PARAGRAPH  A  OF  SUBDIVISION
 THREE  OF  SECTION  EIGHT HUNDRED FIFTY-NINE-C OF THIS TITLE.  NO INDUS-
 TRIAL DEVELOPMENT AGENCY MAY PROVIDE A SMALL BUSINESS OR  NOT-FOR-PROFIT
 CORPORATION  WITH MORE THAN TEN THOUSAND DOLLARS PURSUANT TO THIS SUBDI-
 VISION; AND
   (19) To do all  things  necessary  or  convenient  to  carry  out  its
 purposes and exercise the powers expressly given in this title.
   §  2.  The  general  municipal  law is amended by adding a new section
 859-c to read as follows:
   § 859-C. STATE DISASTER EMERGENCY LOAN PROGRAM.   1. FOR  PURPOSES  OF
 THIS SECTION:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16066-10-0

 A. 10294--A                         2
 
   A.  "GRACE  PERIOD"  MEANS THE SIXTY-DAY PERIOD AFTER A STATE DISASTER
 EMERGENCY ENDS;
   B.  "ELIGIBLE ENTITY" MEANS BOTH A SMALL BUSINESS AND A SMALL NOT-FOR-
 PROFIT CORPORATION THAT:
   (I) IS PHYSICALLY LOCATED IN THE STATE; AND
   (II) WAS OPERATIONAL PRIOR TO THE STATE DISASTER EMERGENCY.
   C. "SMALL BUSINESS" MEANS A BUSINESS WITH NOT MORE THAN FIFTY  EMPLOY-
 EES;
   D.  "SMALL  NOT-FOR-PROFIT  CORPORATION" MEANS A NOT-FOR-PROFIT CORPO-
 RATION, FORMED PURSUANT TO THE NOT-FOR-PROFIT CORPORATION LAW  WITH  NOT
 MORE THAN FIFTY EMPLOYEES; AND
   E.  "STATE  DISASTER  EMERGENCY"  MEANS  THE PERIOD IN WHICH EXECUTIVE
 ORDER TWO HUNDRED TWO OF TWO THOUSAND TWENTY, AS AMENDED, IS  IN  EFFECT
 TO ADDRESS THE OUTBREAK OF NOVEL CORONAVIRUS, COVID-19.
   2.  ANY  INDUSTRIAL  DEVELOPMENT  AGENCY  (IDA) MAY ADMINISTER A STATE
 DISASTER EMERGENCY LOAN PROGRAM TO PROVIDE LOANS FROM AVAILABLE  REVENUE
 TO  ELIGIBLE ENTITIES PURSUANT TO THIS SECTION, PROVIDED THAT NO IDA MAY
 CREATE MORE THAN ONE STATE DISASTER EMERGENCY LOAN PROGRAM.
   3. A. AN IDA MAY MAKE A LOAN TO AN ELIGIBLE  ENTITY  UPON  APPLICATION
 FROM  SUCH  ENTITY  THROUGH  THE  STATE DISASTER EMERGENCY LOAN PROGRAM,
 PROVIDED THE IDA HAS DETERMINED THAT THE APPLICANT:
   (I) WAS A FINANCIALLY VIABLE ENTITY PRIOR TO THE STATE DISASTER  EMER-
 GENCY;
   (II) CONDUCTS BUSINESS IN THE AREA SERVED BY THE IDA; AND
   (III) HAS BEEN NEGATIVELY AFFECTED BY THE STATE DISASTER EMERGENCY.
   B.  AN IDA SHALL CONSIDER THE FOLLOWING, BEFORE APPROVING THE APPLICA-
 TION OF AN ELIGIBLE ENTITY FOR A LOAN UNDER THE STATE DISASTER EMERGENCY
 LOAN PROGRAM:
   (I) CREDITWORTHINESS OF THE APPLICANT  PRIOR  TO  THE  STATE  DISASTER
 EMERGENCY;
   (II)  THE  LEVEL OF NEGATIVE IMPACT OF THE STATE DISASTER EMERGENCY ON
 THE OPERATIONS AND FINANCES OF THE APPLICANT;
   (III) APPLICANT'S PROPOSED PLAN TO USE THE FUNDS RECEIVED THROUGH THIS
 PROGRAM;
   (IV) APPLICANT'S TIES TO THEIR COMMUNITY AND THE IMPACT OF THEIR  WORK
 IN THE AREA SERVED BY THE IDA;
   (V)  APPLICANT'S  ASSURANCE  THAT  EFFORTS WILL BE MADE TO RETAIN JOBS
 DURING THE STATE DISASTER EMERGENCY; AND
   (VI) OTHER POTENTIAL SOURCES OF FUNDING AVAILABLE TO THE APPLICANT.
   C. AN IDA SHALL GIVE PRIORITY UNDER THE STATE DISASTER EMERGENCY  LOAN
 PROGRAM  TO APPLICATIONS FROM APPLICANTS SERVING HIGHLY DISTRESSED AREAS
 AS DEFINED PURSUANT TO SUBDIVISION EIGHTEEN  OF  SECTION  EIGHT  HUNDRED
 FIFTY-FOUR OF THIS TITLE.
   D. NO APPLICANT SHALL BE PERMITTED TO RECEIVE LOANS FROM MORE THAN ONE
 IDA.
   E. ANY IDAS THAT SERVE WITHIN THE SAME MUNICIPALITIES SHALL COORDINATE
 THE DISTRIBUTION OF LOANS IN THE STATE DISASTER EMERGENCY LOAN PROGRAM.
   4.  PRIOR TO ADMINISTERING A STATE DISASTER EMERGENCY LOAN PROGRAM, AN
 IDA SHALL DEVELOP, AND ADOPT BY RESOLUTION, THE TERMS AND CONDITIONS  OF
 SUCH LOANS, PROVIDED THAT:
   A.  THE AMOUNT OF ANY LOAN PROVIDED PURSUANT TO THIS SECTION SHALL NOT
 EXCEED TWENTY-FIVE THOUSAND DOLLARS, PROVIDED THAT THE TOTAL  AMOUNT  OF
 ALL  LOANS  RECEIVED  BY AN ELIGIBLE ENTITY SHALL NOT EXCEED TWENTY-FIVE
 THOUSAND DOLLARS;
   B. THE LOAN AGREEMENT SHALL NOT (I) REQUIRE REPAYMENT DURING THE GRACE
 PERIOD, OR (II) CHARGE INTEREST ON THE PRINCIPAL AMOUNT;

 A. 10294--A                         3
 
   C. THE LOAN AGREEMENT SHALL REQUIRE THAT THE ELIGIBLE ENTITY REPAY THE
 LOAN IN FULL NOT LATER THAN ONE YEAR AFTER THE END OF THE GRACE  PERIOD;
 AND
   D.  THE  LOAN  AGREEMENT  SHALL  NOT  CONTAIN A FEE OR PENALTY FOR THE
 PREPAYMENT OR EARLY PAYMENT OF THE LOAN.
   5. THE IDA SHALL OFFER CREDIT COUNSELING SERVICES  OR  REFER  ELIGIBLE
 ENTITIES TO NOT-FOR-PROFIT CREDIT COUNSELORS.
   6.  A.  EACH  IDA SHALL MAINTAIN RECORDS RELATED TO THE STATE DISASTER
 EMERGENCY LOAN PROGRAM, INCLUDING  A  RECORD  OF  LOANS  ISSUED  AND  OF
 PAYMENTS  RECEIVED,  AND  INCLUDE  SUCH INFORMATION IN THE ANNUAL REPORT
 REQUIRED BY SECTION TWENTY-EIGHT HUNDRED OF THE PUBLIC AUTHORITIES LAW.
   B. AN IDA THAT ESTABLISHES A STATE  DISASTER  EMERGENCY  LOAN  PROGRAM
 PURSUANT  TO THIS SECTION SHALL SUBMIT A REPORT ON THE PROGRAM INCLUDING
 BUT NOT LIMITED TO THE NUMBER AND AGGREGATE AMOUNT OF LOANS GIVEN, LOANS
 FULLY REPAID, ANY OUTSTANDING LOANS, DEFAULTS  AND  BAD  DEBTS,  TO  THE
 GOVERNOR,  THE  SPEAKER  OF THE ASSEMBLY, AND THE TEMPORARY PRESIDENT OF
 THE SENATE ONE YEAR AFTER THE STATE DISASTER EMERGENCY ENDS.
   7. ANY INTEREST DEFERRED OR NOT  CHARGED  RELATED  TO  A  LOAN  ISSUED
 PURSUANT  TO  THIS SECTION SHALL BE EXEMPT FROM ALL STATE TAXES THAT MAY
 BE APPLICABLE TO SUCH INTEREST AMOUNTS AS THEY  RELATE  TO  AN  ELIGIBLE
 ENTITY.  IDAS  SHALL DISCLOSE TO ELIGIBLE ENTITY BORROWERS IN LOAN DOCU-
 MENTS THAT THERE MAY BE FEDERAL TAX CONSEQUENCES TO THE PROGRAM LOANS.
   8. NO NEW LOAN APPLICATIONS PURSUANT TO THIS SECTION SHALL BE ACCEPTED
 AFTER THE STATE DISASTER EMERGENCY ENDS.
   § 3. This act shall take effect immediately and shall  expire  and  be
 deemed repealed December 31, 2021.