Enacts the HIRE NY act to provide loans through the urban development corporation for hiring by micro-businesses

1 Co-sponsor

• Leroy Comrie

BILL NUMBER:S2565

Title of bill

An act to amend the New York state urban development corporation act, in relation to enacting the HIRE NY act

Purpose

To provide zero interest loans to businesses with less than 5 employees to hire New York residents. To grow small businesses and get New Yorkers hired.

Summary of provisions

Section 1 titles this act as the "the hire individuals in the real economy New York Act." Or the "HIRE NY Act."

Section 2 of this bill amends section 1 of chapter 174 of the laws of 1968, constituting the New York State urban development corporation act by adding a new section 16-x. Subpart 1 sets out the legislative intent. Subpart 2 set out definitions. Subpart 3 establishes the hire New York fund and outlines its purposes. Subpart 4 sets for the loan application process. Subpart 5 establishes an application fee. Subpart 6 sets forth the loan terms. Subpart 9 sets forth that a micro-business may utilize funds only for salary of micro-business qualifying new hire. Subpart 10 gives the corporation authorization to establish an advisory committee. Subpart 11 outlines the corporation's reporting requirements. Subpart 12 authorizes the corporation to promulgate rules and regulations required to fulfill the purposes of this act.

Section 3 sets forth that this act shall be eligible to be funded from any state agency, public authority, public benefit corporation or any other entity for which this act is consistent with the mission.

Section 4 sets out that it shall take effect immediately.

Justification

There are far too many unemployed New Yorkers and as a result New York's economy is suffering. Getting unemployed New Yorkers back to work is the key to New York's future economic development. At the same time, start-ups and businesses with less than 5 employees lack the access to capital required to hire new employees. Unfortunately, New York's current economic incentivizes fail to target these businesses because most of them lack taxable income to take advantage of the available tax credits. which make up a substantial portion of the state's economic development incentives.

So while micro-businesses arc the backbones of our communities and the engines of tomorrow's economy we are failing to provide them with the appropriate support so that they can spur significant job creation across the state. To get people back to work we need to offer economic incentives that provide capital to micro-businesses for their use in hiring new employees, instead of relying almost entirely on tax

credits that amount to feel good measures and cannot actually be used by the businesses we are intending to help.

Legislative history

2013-14: S5997B (Gipson) - Referred to Finance

Fiscal implications

None. This bill sets out that the program can be funded out of already budgeted funds from any state agency, public authority, public benefit corporation or any other entity for which this act is consistent with its mission.

Effective date

This act shall take effect immediately