What's happening
This bill creates a community capital loan program providing interest-free loans to low-income individuals to support self-employment.
Why it matters
Targets economic mobility for low-income individuals. By offering interest-free loans specifically to those earning below 200% of the federal poverty level, the program aims to remove a key barrier to self-employment—access to startup capital—potentially enabling more people to move out of poverty through entrepreneurship.
Promotes community-based administration and oversight. The program will be run by a limited number of nonprofit organizations or local government agencies (no more than four, with only one in New York City), encouraging localized solutions and tailored support for loan recipients.
Ensures loans do not affect eligibility for public assistance. Funds received through this program are explicitly not counted as income or resources for public assistance purposes, preventing recipients from losing needed benefits simply because they are trying to start a business.
Requires data collection and transparency. Program sites must report on loan usage, repayment rates, recipients’ financial situations, and subsequent reliance on public assistance. This data-driven approach will help policymakers assess the program’s effectiveness and make improvements as needed.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
No-Interest Loans for Poor
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to social services
- Referred to social services
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2801
2017-2018 Regular Sessions
IN SENATE
January 17, 2017
Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Social Services
AN ACT to amend the social services law, in relation to establishing the community capital loan program and providing for the filing of a report thereon
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The social services law is amended by adding a new section 131-bb to read as follows:
§ 131-bb. Community capital loan program. 1. From amounts appropriated for such purpose, the department of labor in consultation with the department of family assistance is hereby authorized and directed to solicit proposals to establish programs to be known as community capital loan programs. Such programs shall provide small, no-interest loans to persons with income below two hundred percent of the federal poverty level for the purpose of assisting the loan recipient to become self-employed. Loans awarded through a community capital loan program may be paid directly to a third party on behalf of a loan recipient and in either case shall not constitute income or resources for the purposes of public assistance and care so long as the funds are used for the intended purpose.
2. The commissioner of labor shall enter into written agreements with not-for-profit organizations or local government agencies to administer loan pools. Agreements shall be entered into with no more than four organizations and/or agencies, no more than one of which shall be located in the city of New York.
3. Program sites shall be approved based on the demonstrated ability of the organization or governmental agency to secure funding from private and/or public sources sufficient to establish a loan pool to be maintained through repayment agreements entered into by eligible low-income individuals. Funds awarded by the department of labor to approved
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07541-01-7
S. 2801 2
program sites shall be used for the express purposes of covering staffing and administration costs associated with administering the loan pool.
§ 2. A program site, as provided in subdivision 3 of section 131-bb of the social services law, as added by section one of this act, shall, within one year of receiving approval by the department of labor, report to the department of labor on the utilization of the loan pool, including but not limited to, the number and average amount of the loans awarded, the rate of repayment on the loans, the purposes for which the loans were awarded, the financial circumstance of persons receiving the loans, and the number of persons receiving loans who subsequently required public assistance. The department of labor shall provide the findings to the temporary president of the senate and the speaker of the assembly within one month of receiving the reports.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the social services law, in relation to establishing the community capital loan program and providing for the filing of a report thereon
Purpose
To allow individuals on public assistance and the working poor to qualify for small, low-interest loans for the purpose of becoming self-employed.
Summary of provisions
Section 1 amends the social services law by adding a new section 131-bb, which does the following: Subdivision 1 authorizes the Department of Labor to solicit proposals to establish programs to be known as community capital loan program? Such programs shall provide small, low interest loans to persons with incomes below two hundred percent of the federal poverty level for the purpose of assisting the loan recipient to become self-employed. Such loans shall not constitute income or resources for the purposes of public assistance so long as the funds are used for the intended purpose; Subdivision 2 authorizes the Commissioner of Labor to enter into written agreements with not-for-profit organizations or local government agencies (program site) for the purpose of administering loan pools; Subdivision 3 designates how sites will be approved and how funds will be applied.
Section 2 outlines the necessary information to be reported by the program site to the Department of Labor, and from the Department of Labor to the Legislature.
Justification
With more individuals moving from welfare to work, it is necessary to create stable, decent-paying jobs that will allow individuals to remain off public assistance. One way to address this problem is by encouraging self-employment for those who have the capability. Several agencies in Albany County have indicated that they would like to provide loans to welfare recipients for the purpose of becoming self-employed. Further, as large corporations downsize, small business is one of the fastest growing employment sectors in our economy. Facilitating self-employment for both welfare recipients and the working poor will allow them to enter this growing field. Creating a "community capital loan program" would benefit welfare recipients across the state. It may also prevent certain low-income individuals from ever becoming dependent on public assistance.
Legislative history
2013-2014 - S.1188 Referred to Senate Social Services Committee 2011-2012 - S.1444 Remained in the Senate Committee on Social Services 2009/2010 - S.415 Senate Committee on Social Services, Children, and Families discharged and Committed to Social Services 2007/2008 - S.742 Remained in the Senate Committee on Social Services, Children and Families 2005/2006 - S.234 Remained in the Senate Committee on Social Services, Children and Families
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.