S T A T E O F N E W Y O R K
________________________________________________________________________
8094
I N S E N A T E
January 5, 2024
___________
Introduced by Sen. SANDERS -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the banking law and the New York state urban development
corporation act, in relation to the capital access program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (b) of subdivision 1 of section 212 of the bank-
ing law, as amended by a chapter of the laws of 2023 amending the bank-
ing law and the New York state urban development corporation act relat-
ing to the capital access program, as proposed in legislative bills
numbers S. 1690-A and A. 6716-A, is amended to read as follows:
(b) The corporation shall undertake the following programs in further-
ance of the above objectives: (i) establish regional offices at
locations throughout New York, with sufficient staffing to advise,
develop and package financial assistance for small and medium sized
businesses; (ii) develop a comprehensive outreach program to increase
the visibility and awareness of the corporation's programs, including
allocating budget and staff to establish and maintain an aggressive and
extensive marketing program of the corporation's program of assistance
to small and medium sized businesses, providing for specific outreach to
minority and [women owned] WOMEN-OWNED enterprises, and entering into
cooperative relationships with local chambers of commerce, local devel-
opment agencies, local development corporations and other community
based financial intermediaries as set forth in subdivision three of this
section; (iii) establish and operate, or affiliate with a small business
investment company and a specialized small business investment company;
(iv) establish a pilot export financing program, using personnel from
the private sector, to evaluate whether the corporation can play a
significant role in the growth of the export industry in the state and
(v) establish a program in cooperation with the empire state development
corporation that shall focus on small businesses located in highly
distressed areas and minority and women-owned business enterprises
(MWBEs) as such designations are defined by [the regulations of] the New
York state urban development corporation act, through which the corpo-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05985-04-4
S. 8094 2
ration shall be authorized to: (A) act as third-party agent for the
capital access program established by section sixteen-k of section one
of chapter one hundred seventy-four of the laws of nineteen hundred
sixty-eight, constituting the urban development corporation act; (B)
process, fund and approve qualifying program loans made by the corpo-
ration or a participating financial institution pursuant to section
sixteen-k of section one of chapter one hundred seventy-four of the laws
of nineteen hundred sixty-eight, constituting the urban development
corporation act; (C) maintain and service a portfolio of qualifying
loans made pursuant to the capital access program; and (D) engage in
outreach and marketing to financial institutions to increase awareness
of the program established under this subparagraph. The corporation
shall undertake the programs enumerated herein at such times as its
board of directors determines that the corporation's capital base and
available funds are adequate to support the operation of such program.
The programs enumerated herein may be modified by the corporation as may
be necessary to meet the changing needs of the state's economy, as
determined by the board of directors.
§ 2. Paragraph (b) of subdivision 3 of section 16-k of section 1 of
chapter 174 of the laws of 1968, constituting the New York state urban
development corporation act, as amended by a chapter of the laws of 2023
amending the banking law and the New York state urban development corpo-
ration act relating to the capital access program, as proposed in legis-
lative bills numbers S. 1690-A and A. 6716-A, is amended to read as
follows:
(b) Any contract entered into pursuant to subparagraph (i) of para-
graph (a) of this subdivision shall:
(i) be for a period of two years and shall be renewed for an addi-
tional two year period subject to requirements of subparagraph (ii) of
paragraph (a) of this subdivision;
(ii) provide for compensation for expenses incurred by the third party
agent in connection with its services as agent and for such other
services as the NEW YORK BUSINESS DEVELOPMENT corporation may deem
appropriate including, but not limited to the use of the premises,
personnel and personal property of the third party agent; AND
(iii) notwithstanding any law, rule or regulation to the contrary, use
the GUIDELINES, RELATED TO, BUT NOT LIMITED TO underwriting standards
provided for in subdivision four of this section to evaluate applica-
tions for loans pursuant to the program filed by a minority and women-
owned business [enterprise] ENTERPRISES, or a small business whose prin-
cipal place of business is in a highly distressed area[;
(iv) provide for the development of an integrated web portal for the
third-party agent which enables access by minority and women-owned busi-
ness enterprises and small businesses in highly distressed areas to
obtain information on the capital access loan program including the
ability to make application and to receive approval for such loan
online; and
(v) provide funding for marketing to the third-party agent to be
directed to potential loan recipients and to financial institutions to
increase awareness participation and referrals to the capital access
loan program].
§ 3. Subdivision 3 of section 16-k of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban development corpo-
ration act, is amended by adding a new paragraph (c) to read as follows:
(C) THE CORPORATION, AND ANY THIRD PARTY IT CONTRACTS WITH PURSUANT TO
PARAGRAPH (A) OF THIS SUBDIVISION, SHALL COLLABORATE, TO THE EXTENT
S. 8094 3
PRACTICABLE, TO INCREASE MINORITY AND WOMEN-OWNED BUSINESSES' AND SMALL
BUSINESSES' WHOSE PRINCIPAL PLACE OF BUSINESS IS IN A HIGHLY DISTRESSED
AREA, AWARENESS OF, PARTICIPATION IN, AND REFERRALS TO THE CAPITAL
ACCESS LOAN PROGRAM.
§ 4. Subdivision 4 of section 16-k of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban development corpo-
ration act, as added by a chapter of the laws of 2023 amending the bank-
ing law and the New York state urban development corporation act relat-
ing to the capital access program, as proposed in legislative bills
numbers S. 1690-A and A. 6716-A, is amended to read as follows:
4. Notwithstanding any law, rule or regulation to the contrary, the
department of financial services, the empire state development corpo-
ration and the New York business development corporation, IN CONSULTA-
TION WITH RELEVANT STAKEHOLDERS, shall jointly establish [underwriting
standards] GUIDELINES RELATING TO, BUT NOT LIMITED TO, UNDERWRITING
STANDARDS to assist minority and women-owned business enterprises and
small businesses in highly distressed areas IN ACCESSING AND PARTICIPAT-
ING IN THE CAPITAL ACCESS PROGRAM. In addition to other factors, such
[standards] GUIDELINES should incorporate verifiable alternative indi-
cations AND BEST PRACTICES of creditworthiness presented or made avail-
able by the applicant.
§ 5. This act shall take effect on the same date and in the same
manner as a chapter of the laws of 2023 amending the banking law and the
New York state urban development corporation act relating to the capital
access program, as proposed in legislative bills numbers S. 1690-A and
A. 6716-A, takes effect.
