NY State Senate Bill 2019-S8364A

Archive: Last Bill Status - In Senate Committee Commerce, Economic Development And Small Business 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
May 22, 2020	print number 8364a
May 22, 2020	amend (t) and recommit to commerce, economic development and small business
May 19, 2020	referred to commerce, economic development and small business

Bill Amendments

Original

A (Active)

2019-S8364 - Details

See Assembly Version of this Bill:: A10924
Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Labor
Versions Introduced in Other Legislative Sessions:: 2021-2022: S1596, A6407
2023-2024: S2008

2019-S8364 - Summary

Establishes the New York state small business protection program to provide loans and grants to qualifying entities that have less than 100 employees per location, did not receive any federal funding for the Federal CARES Act, was in existence in New York state by the first day the state disaster emergency related to COVID-19 was declared by the governor, can document actual economic harm or revenue shortfall as a direct result of the pandemic, and has filed 2018 or 2019 tax returns.

2019-S8364 - Sponsor Memo

                                
 
BILL NUMBER: S8364

SPONSOR: SANDERS
 
TITLE OF BILL:

An act establishing the New York state paycheck protection program

 
PURPOSE:

This bill would establish the New York State Payroll Protection Program
to provide relief for small businesses, including minority and women-
owned businesses (MWBEs).

 
SUMMARY OF PROVISIONS:

Section 1: Legislative findings.

Section 2: Establishes the New York State Payroll Protection Program

Section 3: Eligibility. Specified entities in this section shall be
eligible for the NYSPPP provided such entity has less than 300 employ-

ees, did not receive any federal funding from the Federal CARES Act, and
was in existence in New York state by the first day the state disaster
emergency related to COVID-l9 was declared by the governor:

Section 4: Loan details and forgiveness. Section 5: Grants.

Section 6: Oversight.

Section 7: Effective date.

 
JUSTIFICATION:

New York state and the nation have been hit hard by a worldwide COVID-19
pandemic. New York City has been the epicenter of the coronavirus with
thousands of lives lost since March 2020.  In April 2020, the Federal
Government enacted two Coronavirus Aid, Relief and Economic Security
(CARES) Act stimulus packages where it introduced the Paycheck
Protection Program (PPP) totaling $659 billion dollars to financially
assist small businesses to prevent losing jobs and small business fail-
ures due to losses caused by the COVID-19 pandemic.

Many local small businesses, including minority and women-owned busi-
nesses (MWBE) in our state, did not receive any federal funding under
the federal PPP in either of the two rounds of funding. In fact, most of
the first round of funding of $349 billion, which was exhausted in just
two weeks, went to large, publicly traded businesses.  According to a
report issued by the Federal Small Business Administration Inspector
General, the Small Business Administration (SBA) was faulted in adminis-
tering the PPP for not issuing guidelines for banks to prioritize busi-
nesses in rural markets, companies that have only been in business for
two years or less, businesses owned by veterans, minorities, women, and
economically disadvantaged individuals. Moreover, the PPP application
did not include demographic information making it difficult or nearly
impossible to ever determine how much money went into the markets
Congress intended to prioritize and imposed a mandate Congress did not
require in authorizing this program.


As New York State is reopening regionally post COVID-19, many of our
small businesses, including MWBEs and farmers who did not receive any
PPP funding, are in desperate need of funding to employ and/or pay
staff, purchase inventory, pay rent and utilities to survive the COVID-
19.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the State. $100 million dollars from future federal stimulus
funding.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S8364 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8364
 
                             I N  S E N A T E
 
                               May 19, 2020
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment and Small Business
 
 AN ACT establishing the New York state paycheck protection program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Legislative findings. a. In April 2020, the Federal Govern-
 ment enacted two Coronavirus Aid, Relief and Economic  Security  (CARES)
 Act  stimulus  packages  where  it  introduced  the  Paycheck Protection
 Program (PPP) totaling $659 billion dollars to financially assist  small
 businesses,  and  to  prevent  the loss of jobs and the failure of small
 businesses due to financial losses caused by the COVID-19 pandemic.
   b. Many local small businesses  including  minority-  and  women-owned
 businesses  (MWBEs)  in  our  state  did not receive any federal funding
 under the federal PPP in either of the two rounds of funding.  In  fact,
 most  of  the  first  round  of funding totaling $349 billion, which was
 exhausted in 2 weeks, went to large publicly traded businesses.
   c. According to a report issued by the Federal Small Business Adminis-
 tration Inspector General, the Small Business Administration  (SBA)  was
 faulted  in  administering the PPP, in that the SBA did not issue guide-
 lines for banks to prioritize businesses  in  rural  markets,  companies
 that  have  only  been  in business for two years or less, or businesses
 owned by veterans,  minorities,  women  and  economically  disadvantaged
 individuals.  Moreover,  the PPP application did not include demographic
 information making it difficult or near impossible to determine how much
 money went into the markets.
   d. As New York state is reopening regionally post  COVID-19,  many  of
 our  small  businesses,  including MWBEs and farmers who did not receive
 any PPP funding are in desperate need of funding to  employ  and/or  pay
 staff, purchase inventory, and pay rent and utilities.
   §  2.  Establishment.  Notwithstanding  any  provision  of  law to the
 contrary, the legislature shall authorize the  establishment  of  a  New
 York  State  Payroll  Protection  Program  (NYSPPP)  to be funded in the
 amount of 100 million dollars from future federal stimulus funding. Such
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD16401-02-0

 S. 8364                             2
 
 funding shall reimburse any moneys used from any  state  funds  for  the
 purposes  described  under sections four or five of this act, including,
 but not limited to the New York state common retirement fund.
   §  3.  Eligibility.  The  following entities shall be eligible for the
 NYSPPP provided such entity has less than 300 employees, did not receive
 any federal funding from the Federal CARES Act, and was in existence  in
 New  York state by the first day the state disaster emergency related to
 COVID-19 was declared by the governor:
   a. Small businesses,  including  minority-  and  women-owned  business
 enterprises,  owned  by veterans, minorities, women, economically disad-
 vantaged individuals and farmers;
   b. Small businesses that have been in existence for two years or less;
   c. Small businesses located in underserved and rural markets;
   d. A non-profit organization having tax exempt  status  under  section
 501(c)(3)  of  the  United  States  Internal Revenue Code, or a veterans
 organization having tax exempt status under section  501(c)(19)  of  the
 United States Internal Revenue Code;
   e.  Any  business with a North American Industry Classification System
 code for principal business activity for New  York  state  tax  purposes
 that  has  more  than  one  physical  location and employs less than 300
 people per location;
   f.  Sole  proprietors,  independent  contractors,  and   self-employed
 persons; and
   g. Any new businesses formed and/or incorporated during the federal or
 state  COVID-19 state of emergencies or within 30 days after the expira-
 tion of such state of emergencies.
   § 4. Loan details and forgiveness. a. All eligible  entities  pursuant
 to  section three of this act, shall submit an application through local
 community development financial institutions (CDFIs) located within  the
 state.  The  maximum  loan  amount  an  entity  may apply for is 100,000
 dollars.
   b. Such loan will be fully forgiven if the funds are used for  payroll
 costs,  interest  on  mortgages, rent, and utilities; provided, however,
 due to likely high subscription, at least 75%  of  the  forgiven  amount
 shall  have been used for payroll costs. Loan payments shall be deferred
 for six months. No  collateral  or  personal  guarantees  are  required.
 Neither  the  government  nor CDFIs shall charge qualifying entities any
 fees.
   c. Forgiveness is based on the qualifying small  business  maintaining
 or quickly rehiring employees and maintaining salary levels. Forgiveness
 will  be  reduced  if  full-time  headcount declines, or if salaries and
 wages decrease within 12 weeks of receiving such  funding.  The  12-week
 rule  shall  not  apply to any entity if such entity paid its employees'
 salaries during the COVID-19 state of disaster emergencies or when  such
 entity  was  closed.  Documented  proof of such payroll payment shall be
 required.
   d. All loans not forgiven under subdivision b of  this  section  shall
 have a maturity of 2 years and an interest rate of 1%.
   e. The department of financial services shall have oversight and moni-
 tor  the  application  process persuant to this section. Such department
 shall provide a report to the chairs of the senate banks  committee  and
 the  assembly  banks  committee within 6 months of the effective date of
 this act or when funds are fully exhausted, whichever happens first.
   § 5. Grants. The NYSPPP shall provide  the  following  grants  to  all
 qualified  small  businesses,  not-for-profits  and charitable organiza-
 tions:

 S. 8364                             3
 
   a. A rent reimbursement grant to  reimburse  qualifying  entities  for
 rent  paid  during the COVID-19 pandemic, provided such entity has docu-
 mentary proof of such paid rent. This rent reimbursement grant shall  be
 capped at 3 months of paid rent;
   b.  A  grant to reimburse qualifying entities for perishable inventory
 purchased before the COVID-19  state  of  disaster  emergency  that  was
 thrown  out  due  to  the forced shut down of such entity and/or to help
 replace food inventory to such entity reopen; and
   c. A grant subsidy for farmers to pay for gas and tolls to deliver the
 products throughout the state.
   § 6. Oversight. The state comptroller  shall  monitor  the  NYSPPP  to
 ensure the provisions of this act are properly executed. The state comp-
 troller  shall  submit  a  report  on  such program to the governor, the
 temporary president of the senate and the speaker of the  assembly,  and
 shall  post  such  on  the  comptroller's  website  on a quarterly basis
 describing any loans granted under such program.
   § 7. This act shall take effect immediately.

co-Sponsors

2019-S8364A (ACTIVE) - Details

See Assembly Version of this Bill:: A10924
Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Labor
Versions Introduced in Other Legislative Sessions:: 2021-2022: S1596, A6407
2023-2024: S2008

2019-S8364A (ACTIVE) - Summary

2019-S8364A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8364a

SPONSOR: SANDERS
 
TITLE OF BILL:

An act establishing the New York state small business protection program

 
PURPOSE:

This bill would establish the New York State Small Business Protection
Program to provide relief for small businesses, including certified
minority and women-owned businesses (MWBEs).

 
SUMMARY OF PROVISIONS:

Section 1: Legislative findings.

Section 2: Establishes the New York State Small Business Protection
Program

Section 3: Eligibility. Specified entities in this section shall be

eligible for the NYSBPP provided such entity has 100 employees or less
per location, did not receive any federal funding from the Federal CARES
Act, was in existence in New York state by the first day the state
disaster emergency related to COVID-19 was declared by the governor, and
can document actual economic harm or revenue short fall as a direct
result of the pandemic.

Section 4: Loan details and forgiveness.

The lending priority under this program shall be:

a. small businesses, including certified MWBEs, owned by veterans,
minorities, women, economically disadvantaged individuals, and farmers;

b. Businesses in the restaurant, luxury service (barbershops and
salons), retail, transportation, hospitality and farming industries;

c. businesses located in economically distressed or underserved communi-
ties and rural markets;

d. non-profit organization having tax exempt status under section
501(c)(3), or a veterans organization having a tax exempt status under
section 501(c)(19) of the Internal Revenue Code;

e. sole proprietors, independent contractors, and self employed persons;

f. small businesses that have been in existence for two years of less;
and

g. new businesses formed or incorporated within 30 days after the expi-
ration of the state of emergencies or the region of the state where the
business is located has reopened post COVID."  All eligible entities
pursuant to section three of this act, shall submit an application
through a community development financial institutions (CDFIs), minority
depository institutions (MDIs), local community banks or credit unions
located within the state. No applications shall be processed through any
merchant cash advance or any financial technology companies. All lending
institutions in this program shall collect and provide data about the
borrowers' demographics and loan amount. The loan amount shall equal 60%
of the prior year eligible expenses not to exceed $100,000.00. Loans not
forgiven shall mature in 2 years at 1% interest rate, or 3 years if the
loan payments have been deferred under this program.

Section 5: Grants.

Loans shall be forgiven if funds are used for payroll or 1099 employees,
interest on mortgages, rent, utilities and inventory. This program also
provides for reimbursement grants for rent paid during the state of
emergencies, perishable food that had to be discarded due to the closure
of restaurants, and a start up business grant.

Section 6: Oversight.

Department of Financial Services shall have oversight in monitoring the
loan application process and promulgate rules for the administration of
the program. The State Comptroller shall have oversight of the loan
program.

 
JUSTIFICATION:

New York state and the nation have been hit hard by a worldwide COVID-19
pandemic. New York City has been the epicenter of the coronavirus with
thousands of lives lost since March 2020. In April 2020, the Federal
Government enacted two Coronavirus Aid, Relief and Economic Security
(CARES) Act stimulus packages where it introduced the Paycheck
Protection Program (PPP) totaling $659 billion dollars to financially
assist small businesses to prevent losing jobs and small business fail-
ures due to losses caused by the COVID-19 pandemic.

Many local small businesses, including minority and women-owned busi-
nesses (MWBE) in our state, did not receive any federal funding under
the federal PPP in either of the two rounds of funding. In fact, most of
the first round of funding of $349 billion, which was exhausted in just
two weeks, went to large, publicly traded businesses.

According to a report issued by the Federal Small Business Adminis-
tration Inspector General, the Small Business Administration (SBA) was
faulted in administering the PPP for not issuing guidelines for banks to
prioritize businesses in rural markets, companies that have only been in
business for two years or less, businesses owned by veterans, minori-
ties, women, and economically disadvantaged individuals. Moreover, the
PPP application did not include demographic information making it diffi-
cult or nearly impossible to ever determine how much money went into the
markets Congress intended to prioritize and imposed a mandate Congress
did not require in authorizing this program.

As New York State is reopening regionally post COVID-19, many of our
small businesses, including MWBEs and farmers who did not receive any
PPP funding, are in desperate need of funding to employ and/or pay
staff, purchase inventory, pay rent and utilities to survive the COVID-
19.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the State. $100 million dollars from future federal stimulus
funding.

 
EFFECTIVE DATE:

2019-S8364A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8364--A
 
                             I N  S E N A T E
 
                               May 19, 2020
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment  and  Small  Business  --  committee  discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT establishing the New York state small business protection program

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. a. In April 2020, the Federal Govern-
 ment  enacted  two Coronavirus Aid, Relief and Economic Security (CARES)
 Act stimulus  packages  where  it  introduced  the  Paycheck  Protection
 Program  (PPP) totaling $659 billion dollars to financially assist small
 businesses, and to prevent the loss of jobs and  the  failure  of  small
 businesses due to financial losses caused by the COVID-19 pandemic.
   b.  Many  local  small  businesses including minority- and women-owned
 businesses (MWBEs) in our state did  not  receive  any  federal  funding
 under  the  federal PPP in either of the two rounds of funding. In fact,
 most of the first round of funding  totaling  $349  billion,  which  was
 exhausted in 2 weeks, went to large publicly traded businesses.
   c. According to a report issued by the Federal Small Business Adminis-
 tration  Inspector  General, the Small Business Administration (SBA) was
 faulted in administering the PPP, in that the SBA did not  issue  guide-
 lines  for  banks  to  prioritize businesses in rural markets, companies
 that have only been in business for two years  or  less,  or  businesses
 owned  by  veterans,  minorities,  women  and economically disadvantaged
 individuals. Moreover, the PPP application did not  include  demographic
 information making it difficult or near impossible to determine how much
 money went into the markets.
   d.  As  New  York state is reopening regionally post COVID-19, many of
 our small businesses, including MWBEs and farmers who  did  not  receive
 any  PPP  funding  are in desperate need of funding to employ and/or pay
 staff, purchase inventory, and pay rent and utilities.
   § 2. Establishment.  Notwithstanding  any  provision  of  law  to  the
 contrary,  the  legislature  shall  authorize the establishment of a New
 York State Small Business Protection Program (NYSSBPP) to be  funded  in
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD16401-03-0

 S. 8364--A                          2
 
 the  amount of 100 million dollars from future federal stimulus funding.
 Such funding shall reimburse any moneys used from any  state  funds  for
 the purposes described under sections four or five of this act.
   §  3. Eligibility. Entities shall be eligible for the NYSSBPP provided
 such entity has less than 100 employees per location,  did  not  receive
 any  federal funding from the Federal CARES Act, was in existence in New
 York state by the first day the  state  disaster  emergency  related  to
 COVID-19 was declared by the governor, can document actual economic harm
 or  revenue  shortfall as a direct result of the pandemic, and has filed
 2018 or 2019 tax returns. The lending priority shall be as follows:
   a. small businesses,  including  minority-  and  women-owned  business
 enterprises,  owned  by veterans, minorities, women, economically disad-
 vantaged individuals and farmers;
   b. businesses in the restaurant, luxury service,  retail,  transporta-
 tion, hospitality and farming industries;
   c.  small businesses located in economically distressed or underserved
 communities and rural markets;
   d. non-profit organizations having tax  exempt  status  under  section
 501(c)(3),  or  a  veterans  organization having tax exempt status under
 section 501(c)(19) of the United States Internal Revenue Code;
   e.  sole  proprietors,  independent  contractors,  and   self-employed
 persons;
   f. small businesses that have been in existence for two years or less;
 and
   g.  new  businesses  formed  or  incorporated within 30 days after the
 expiration of the state of emergencies or the region of the state  where
 the business is located has reopened post COVID-19.
   §  4.  Loan details and forgiveness. a. All eligible entities pursuant
 to section three of this act, shall submit an application through commu-
 nity development financial  institutions  (CDFIs),  minority  depository
 institutions  (MDIs),  local  community  banks  or credit unions located
 within the  state.  No  applications  shall  be  processed  through  any
 merchant cash advance or any financial technology companies. All lending
 institutions  in  this  program shall collect and provide data about the
 borrowers' demographics and loan amount.
   b. The loan amount shall equal 60% of the prior year eligible expenses
 not to exceed $100,000.00.
   c. Such loan shall be forgiven if funds are used for payroll  or  1099
 employees, interest on mortgages, rent, utilities and inventory.
   d.  Purchases  of new equipment are permissible under this program but
 such loan will not be forgiven as a grant.
   e. All loan payments shall be deferred for  6  months,  which  can  be
 deferred  for  an  additional 6 months but not to exceed 1 year from the
 date of the loan.
   f. No collateral or personal  guarantees  are  required.  Neither  the
 government  nor  financial institutions shall charge qualifying entities
 any fees.
   g. Forgiveness is based on the qualifying small  business  maintaining
 or quickly rehiring employees and maintaining salary levels. Forgiveness
 will  be  reduced  if  full-time  headcount declines, or if salaries and
 wages decrease within 12 weeks of receiving such  funding.  The  12-week
 rule  shall  not  apply to any entity if such entity paid its employees'
 salaries during the COVID-19 state of disaster emergencies or when  such
 entity  was  closed.  Documented  proof of such payroll payment shall be
 required.

 S. 8364--A                          3
 
   h. All loans not forgiven under subdivision b of  this  section  shall
 have  a maturity of 2 years and an interest rate of 1% or 3 years of the
 loan payments have been deferred.
   i. The department of financial services shall have oversight and moni-
 tor  the  application  process pursuant to this section. Such department
 shall create the application and  promulgate  rules  necessary  for  the
 administration of this program.
   §  5.  Grants.  The  NYSSBPP shall provide the following grants to all
 qualified small businesses,  not-for-profits  and  charitable  organiza-
 tions:
   a.  A  rent  reimbursement  grant to reimburse qualifying entities for
 rent paid during the COVID-19 pandemic, provided such entity  has  docu-
 mentary  proof of such paid rent. This rent reimbursement grant shall be
 capped at 3 months of paid rent during the state of emergencies;
   b. A grant to reimburse qualifying entities for  perishable  inventory
 purchased  before  the  COVID-19  state  of  disaster emergency that was
 thrown out due to the forced shut down of such entity and/or to  replace
 food inventory to help such entity reopen; and
   c. A grant subsidy for farmers to pay for gas and tolls to deliver the
 products throughout the state.
   §  6.  Oversight.  The  state comptroller shall monitor the NYSSBPP to
 ensure the provisions of this act are properly executed. The state comp-
 troller shall submit a report on  such  program  to  the  governor,  the
 temporary  president  of the senate and the speaker of the assembly, and
 shall post such on  the  comptroller's  website  on  a  quarterly  basis
 describing any loans granted under such program.
   § 7. This act shall take effect immediately.

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Senate Bill S8364A

Sponsored By

Archive: Last Bill Status - In Senate Committee Commerce, Economic Development And Small Business Committee

Bill Amendments

2019-S8364 - Details

2019-S8364 - Summary

2019-S8364 - Sponsor Memo

2019-S8364 - Bill Text download pdf

co-Sponsors

2019-S8364A (ACTIVE) - Details

2019-S8364A (ACTIVE) - Summary

2019-S8364A (ACTIVE) - Sponsor Memo

2019-S8364A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8364A

Share this bill

Sponsored By

James Sanders Jr.

Archive: Last Bill Status - In Senate Committee Commerce, Economic Development And Small Business Committee

Bill Amendments

2019-S8364 - Details

2019-S8364 - Summary

2019-S8364 - Sponsor Memo

2019-S8364 - Bill Text download pdf

co-Sponsors

Rachel May

2019-S8364A (ACTIVE) - Details

2019-S8364A (ACTIVE) - Summary

2019-S8364A (ACTIVE) - Sponsor Memo

2019-S8364A (ACTIVE) - Bill Text download pdf

Comments