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History
- Held for consideration in ways and means
- Print number 5247a
- Amend and recommit to ways and means
- Referred to ways and means
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Establishes a small business tax credit for Small Business Administration (SBA) guaranty fees paid by a taxpayer
In Assembly Committee · Ways And Means · Sponsor Brian X. Foley
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A5247A
Title of bill
An act to amend the tax law, in relation to establishing a small business tax credit for SBA guaranty fees paid
Purpose
The purpose of this legislation is to assist small businesses in obtaining loans by providing a tax credit for the fees which are a part of the United States Small Business Administration (SBA) loan proc- essing.
Summary of provisions
This bill would allow small businesses in New York State that have paid a loan guaranty fee to the SBA in order to obtain an SBA 7(a) guaranteed loan, to receive a tax credit, beginning January 1, 2006, for the full amount of the guaranty fee. The tax credit may only be claimed by the small business and may not be claimed if the guaranty fee has been added to the amount financed by the borrower. Any unused tax credit may be carried over for five years.
Justification
A major concern for today's small business owners is access to capital and credit. The SBA's loan guarantee program provides guarantees on loans to small businesses looking to expand, invest in new equipment or refinance existing debt. Many of these firms are considered high-risk and most likely would not receive financing without SBA support.
The 7(a) Loan Guaranty Program is the SBA's primary loan program. The SBA reduces the risk to lenders by guaranteeing up to 8O percent of the loan made to a small business by the private lender. By providing this guaranty, the SBA is able to help tens of thousands of small businesses every year get financing they would not otherwise obtain.
The SBA charges the lender a nominal fee (guaranty fee) to provide a guaranty, and the lender may pass this charge on to the small business. The guaranty fee is determined on a sliding scale based on the maturity of the loan and the dollar amount that the SBA guarantees.
In an effort to encourage business growth worth and to assist small businesses, a number of other states have been providing tax credits for the fees which are part of the SBA loan processing. New York State should offer its small businesses the same tax credit for any fees paid to the SBA in order to obtain a loan.
Legislative history
A.544 of 2003-2004. A.2007 of 2005-2006. A4427 of 2007-2008 - referred to ways and means
Fiscal implications
Undetermined.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.