NY State Senate Bill 2021-S4202

Senate Bill S4202

2021-2022 Legislative Session

Relates to requiring the small business revolving loan fund to target and market to veteran-owned enterprises and service disabled veteran-owned enterprises

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 05, 2022	referred to corporations, authorities and commissions
Feb 02, 2021	referred to corporations, authorities and commissions

2021-S4202 (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Amd §16-t, UDC Act
Versions Introduced in Other Legislative Sessions:: 2015-2016: S6096
2017-2018: S4230
2019-2020: S2739
2023-2024: S1671

2021-S4202 (ACTIVE) - Summary

Relates to requiring the small business revolving loan fund to target and market to veteran-owned enterprises and service disabled veteran-owned enterprises.

2021-S4202 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4202

SPONSOR: ADDABBO
 
TITLE OF BILL:

An act to amend the New York state urban development corporation act, in
relation to requiring the small business revolving loan fund to target
and market to veteran-owned enterprises and service-disabled veteran-
owned enterprises

 
PURPOSE:

The purpose of this bill is to require the small business revolving loan
fund in the Empire State Development Corporation to target and market to
veteran-owned enterprises and service disabled veteran-owned enter-
prises.

 
SUMMARY OF PROVISIONS:

Section 1 amends the New York state urban development corporation act to
require the small business revolving loan fund to target and market to

veteran-owned enterprises as set forth in 15 U.S.C. section 632(Q)(3),
as amended from time to time, and service disabled veteran owned enter-
prises as set forth in article seventeen-8 of the executive law.

Section 2 of the bill establishes the effective date.

 
JUSTIFICATION:

The small business revolving loan fund currently targets and markets to
minority and women-owned enterprises. Veterans have contributed signif-
icantly to defending the freedoms that we cherish. In recent years the
state has increased its specific set-asides for businesses owned by
service disabled veteran owned enterprises in recognition of their
service and unique contributions. In recognition of their service to the
nation, this bill would require the small business revolving loan fund
to target and market to veteran-owned enterprises and service disabled
veteran-owned enterprises, mirroring similar efforts already underway in
the state.

 
PRIOR LEGISLATIVE HISTORY:

2019: S. 2739 - Referred to Senate Corporations, Authorities & Commis-
sions.

2020: S. 2739 - Referred to Senate Corporations, Authorities & Commis-
sions.

 
FISCAL IMPLICATIONS:

There is no cost in adding these veteran-owned enterprises to the eligi-
bility criteria. Increased eligible applicants will likely lead to a
need for an increase in the current appropriation level for the revolv-
ing loan fund, to ensure that there is not a loss in opportunity for
currently eligible applicants. Any such increased appropriations shall
be negotiated within the context of the yearly state budget.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S4202 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4202
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 2, 2021
                                ___________
 
 Introduced  by  Sen. ADDABBO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN ACT to amend the New York state urban development corporation act, in
   relation to requiring the small business revolving loan fund to target
   and  market to veteran-owned enterprises and service-disabled veteran-
   owned enterprises
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 3 of section 16-t of section 1 of chapter 174
 of the laws of 1968, constituting the New York state  urban  development
 corporation  act,  as  amended  by  chapter  254 of the laws of 2016, is
 amended to read as follows:
   3. Program loans to small businesses  and  micro-businesses  shall  be
 targeted  and marketed to minority and women-owned enterprises, VETERAN-
 OWNED ENTERPRISES AS SET  FORTH  IN  15  U.S.C.  SECTION  632(Q)(3),  AS
 AMENDED  FROM  TIME  TO  TIME, AND SERVICE-DISABLED VETERAN-OWNED ENTER-
 PRISES AS SET FORTH IN ARTICLE SEVENTEEN-B OF  THE  EXECUTIVE  LAW,  and
 other  small  businesses and micro-businesses that are having difficulty
 accessing traditional credit markets. Program loans to small  businesses
 and  micro-businesses  shall  be  used for the creation and retention of
 jobs, as defined by the corporation, including: (a) working capital; (b)
 the acquisition and/or improvement of real property; (c) the acquisition
 of machinery and equipment, property or improvement; or  (d)  the  refi-
 nancing  of  debt obligations. There shall be two categories of loans to
 small businesses and micro-businesses: a micro loan that  shall  have  a
 principal  amount  that  is less than twenty-five thousand dollars and a
 regular loan that shall have a principal amount not  less  than  twenty-
 five  thousand  dollars.  Prior  to receiving program funds, the lending
 organization must certify to the corporation  that  such  loan  complies
 with  this section and rules and regulations promulgated for the program
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03401-01-1

 S. 4202                             2
 
 and that the lending organization has performed its obligations pursuant
 to and is in compliance with this section, the program rules  and  regu-
 lations  and all agreements entered into between the corporation and the
 lending  organization.  The  program  funds  amount  used by the lending
 organization to fund a program applicant loan shall  not  be  more  than
 fifty  percent  of  the principal amount of such loan. The program funds
 amount used by the lending organization to fund a program applicant loan
 shall not be greater than one hundred and twenty-five thousand  dollars.
 Minority-  and  women-owned  business  enterprises, VETERAN-OWNED ENTER-
 PRISES AS SET FORTH IN 15 U.S.C. SECTION 632(Q)(3), AS AMENDED FROM TIME
 TO TIME, AND SERVICE-DISABLED VETERAN-OWNED ENTERPRISES AS SET FORTH  IN
 ARTICLE  SEVENTEEN-B OF THE EXECUTIVE LAW, and other small businesses or
 micro-businesses who access such program loans  under  this  subdivision
 shall  not  be  precluded from accessing such short-term financing loans
 provided under subdivision eleven of this section.
   § 2. This act shall take effect immediately.

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