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History
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
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.
Allows businesses to use funds received from the minority and women-owned business development and lending program for the purpose of refinancing existing debt
In Assembly Committee · Economic Development · Sponsor Rodneyse Bichotte Hermelyn
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S5737
Title of bill
An act to amend the urban development corporation act, in relation to allowing businesses to use funds received from the minority and women-owned business development and lending program for the purpose of refinancing existing debt
Purpose
Allows businesses to use funds received from the minority and women-owned business development and lending program for the purpose of refinancing existing debt.
Summary of provisions
Section 1. Subparagraphs (vi) and (vii) of paragraph (c) of subdivision 1 of section 16-c of section 1 of chapter 174 of the laws of 1968, constituting the urban development corporation act, as added by chapter 169 of the law of 1994, are amended.
Justification
Currently, the minority and women-owned business development and lending program does not allow small business to do debt refinancing. Modifying this existing loan program would permit a small business to refinance existing debt on more favorable terms, which would allow these businesses to improve their cash flow. Too often, commercial credit cards are the first and only means for small businesses to access credit. And while credit cards provide relatively easy and convenient credit, interest rates are substantially higher (often topping @20%) than loans available through banks, credit unions, or CDFIs. For example, a small business with $20,000 in credit card debt could expect to pay $4,000 or more a year in interest on credit card debt. However, if the business could refinance that debt under one of the State's existing micro-loan programs, the interest payments could fall to as little as $1,200 to $1,600, saving the business nearly $3,000 a year.
(www.nysmalllbiztaskforce.org)
Legislative history
2011: Referred to Economic Development; 2012: Referred to Economic Development; 2013-2014: Referred to Economic Development;
Fiscal implications
None
Local fiscal implications
None
Effective date
This act shall take affect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.