NY State Senate Bill 2021-S3867

Senate Bill S3867

2021-2022 Legislative Session

Provides that microbusinesses in New York are eligible for small business revolving loans and the linked deposit interest rate reductions

download bill text pdf

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
Jan 05, 2022	referred to commerce, economic development and small business
Feb 01, 2021	referred to commerce, economic development and small business

2021-S3867 (ACTIVE) - Details

Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Economic Development Law
Laws Affected:: Add §131-a, Ec Dev L; amd §213, St Fin L; amd §16-t, UDC Act
Versions Introduced in Other Legislative Sessions:: 2011-2012: S7556
2013-2014: S546
2015-2016: S643
2017-2018: S1802
2019-2020: S1543
2023-2024: S6490
2025-2026: S6010

2021-S3867 (ACTIVE) - Summary

Provides that microbusinesses in New York are eligible for small business revolving loans and the linked deposit interest rate reductions.

2021-S3867 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3867

SPONSOR: KENNEDY
 
TITLE OF BILL:

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

 
PURPOSE:

To provide that microbusinesses in New York are eligible for small busi-
ness revolving loans and the linked deposit interest rate reductions.

 
SUMMARY OF PROVISIONS:

Section 1 adds a new section 131-a to the economic development law to
include the definition of a microbusiness as one that is resident in New
York state, independently owned and operated, not dominant in its field,
and employs under five persons.

Section 2 amends paragraph f subdivision 11 of section 213 of the state
finance law, as added by chapter 705 of the laws of 1993, by adding a
new paragraph h stating that a microbusiness (that has been in operation
for 5 years and that is located in an empire zone, empowerment zone, a
highly distressed area of renewal community) is an eligible business for
the purpose of the excelsior linked deposit program.

Section 3 amends section 16-t of section 1 of chapter 174 of the laws of
1968 by adding a new subdivision 16 to provide that $5 million in
program funds be available for micro-loans to microbusinesses, which
will be eligible to apply in the same manner as other small businesses.

 
JUSTIFICATION:

Microbusinesses have been estimated to constitute around 90% of all
businesses within New York State by the Association for Enterprise
Opportunity. A microbusiness is a business that has 5 or fewer employ-
ees. Given their nature, it is often difficult for microbusiness owners
to access capital through lending institutions.  A microbusiness can
consist of a wide variety of businesses that run from 'mom and pop'
shops to start-up tech companies. These businesses are both the backbone
and the future of our economy.

Given their prevalence and importance, this bill adds the definition of
microbusinesses to the law in order to allow for their inclusion in
successful state programs, including the linked deposit program and
small business revolving loan fund.

 
PRIOR LEGISLATIVE HISTORY:

2019-20: S.1543 Referred to Commerce, Economic Development, and Small
Business
2017-18: S.1802 Referred to Commerce, Economic Development, and Small
Business
2015-16: Referred to Commerce, Economic Development, and Small Business
2014: S.546 Referred to Commerce, Economic Development, and Small Busi-
ness
2012: S.7556 Referred to Commerce, Small Business Economic Development
 
FISCAL IMPLICATIONS:

No additional cost to the state is estimated.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S3867 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3867
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 1, 2021
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment 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:
   § 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.
   §  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
   (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06995-01-1

 S. 3867                             2
 
 AND THAT IS LOCATED IN  AN  EMPIRE  ZONE,  EMPOWERMENT  ZONE,  A  HIGHLY
 DISTRESSED AREA OR RENEWAL COMMUNITY.
   §  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 17 to read as follows:
   17.  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.
   § 4. This act shall take effect immediately.

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