Creates the micro business outreach center assistance program and micro business outreach center

BILL NUMBER:S4574

Title of bill

An act to amend the economic development law, in relation to creating the micro business outreach center assistance program

Purpose

To create a means of supporting existing business outreach centers and creating additional centers that are serving micro enterprises as well as providing them with the opportunity to facilitate individuals of communities that are geographically and socially isolated from the mainstream economy with access to economic development counseling services and funds

Summary of specific provisions

Adds a new article 9-b to the economic development law thereby creating the micro business outreach center assistance program.

Justification

Small businesses are the backbone of every community. In this difficult economy small businesses are the source of the majority of new jobs. Daily, more and more individuals realize the opportunities that exist for people who have their own businesses and the benefits that such small businesses provide to the surrounding community. In New York State there are many people that have a talent or idea that could become a very successful enterprise if only they knew how to implement it. These are the types of people who are potential micro enterprise owners proprietors of businesses that begin with five or less employees, require less than $35,000 in start-up capital, and do not have access to the traditional commercial banking sector.

Business outreach centers take hard working men and women who may not have the knowledge Of experience of how to create a micro business and provide them with the tools they need to start an enterprise, whether it is teaching the individual how to write a business plan or matching the eager entrepreneur with a reasonable loan. With the help of business outreach centers the American dream is actually achievable. These programs are most helpful to minorities, women, and immigrant communities who might not have access to capital and are therefore ineligible to receive loans in the eyes of most major lending companies.

The Small Business Association has reported that women of color start businesses at six times the rate of men, and since 1997 the number of women owned businesses in New York City alone has grown by over 21 %. This has been able to occur through the hard work of centers that are already in existence in the New York Metropolitan area. Studies by the Aspen Institute have even shown that these types of services help move the working-poor out of poverty. When women, immigrant, and minority populations have the opportunity to become successful, self supporting business people that cater to the needs of their individual communities, local areas are revitalized and the entire State benefits.

This legislation ensures that business outreach centers serving micro enterprises will be able to receive federal funding as well as provide the opportunity and benefits of these services to a greater population throughout New York State thereby increasing both community wealth and

employment opportunities. The State has historically been financially supportive of many such programs and this legislation seeks to ensure that such support continues into the future and is provided to a greater population.

Legislative history

2012 - S.2825 - Died - Commerce, Economic Development, and Small Business 2010 - S.7968 - Passed Senate 2009 - S.5639 - Gov veto

Fiscal implications

To be determined

Effective date

This act shall take effect on the one hundred eightieth day after it shall become law.