What's happening
This bill allows the New York State Industrial Development Agency to provide loans, grants, and early-stage equity funding to entities furthering its corporate purposes.
Why it matters
Expands funding tools for local economic growth. By allowing the New York State Industrial Development Agency (IDA) to make loans, grants, and early-stage equity investments, the bill provides new ways for the IDA to support businesses and economic development beyond traditional tax incentives and bonds.
Targets innovation and startups. The new authority to offer seed and early-stage equity funding specifically aims to help emerging companies, which are often underserved by conventional financing but can drive job creation and innovation in local economies.
Encourages companies to stay local. The requirement that equity-funded companies must return funds if they leave the municipality within a specified period helps ensure that public investment benefits the local area and discourages companies from relocating after receiving support.
Brings flexibility and accountability. By mandating formal agreements for loans and grants, and by having the IDA develop detailed funding plans, the bill seeks to ensure that public funds are used transparently and directly tied to the agency’s economic development goals.
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Who cares
Headline styles
Expand IDA Loan Powers
Plain English, a few words. Used as the page title.
Sponsors
1 Multi-sponsor
History
- Referred to local governments
- Referred to local governments
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8358
2017-2018 Regular Sessions
IN ASSEMBLY
June 12, 2017
Introduced by M. of A. MAGNARELLI, SCHIMMINGER -- read once and referred to the Committee on Local Governments
AN ACT to amend the general municipal law, in relation to the powers of the New York state industrial development agency
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivisions 16 and 17 of section 858 of the general municipal law, as renumbered by chapter 356 of the laws of 1993, are renumbered subdivisions 19 and 20 and three new subdivisions 16, 17 and 18 are added to read as follows:
(16) To provide loans to any private or public corporation or any legal entity provided said loan is memorialized in an appropriate loan agreement and further provided that the loan proceeds are used in furtherance of the agency's corporate purposes;
(17) To provide grants to any private or public corporation or any legal entity provided said grant is memorialized in an appropriate grant agreement stipulating the services to be provided in furtherance of the agency's corporate purposes;
(18) Notwithstanding any other law, to provide seed and early-stage equity funding to any private corporation or any legal entity, in accordance with a plan to be developed by the agency, located within, or to be located within, the municipality for whose benefit the agency was created and that is in the seed, early stage or venture stage of development and that has the potential to generate additional economic activity in New York state provided, however, that funds received by the beneficiary private corporation or legal entity shall be returned if the beneficiary private corporation or legal entity leaves the municipality for whose benefit the agency was created within a period of time to be established by the agency;
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11693-02-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.