What's happening
This bill allows the reallocation of certain loan trust funds to support small business revolving loans, expanding eligible uses and access.
Why it matters
Expands access to small business loans. by allowing funds from existing regional and commercial district loan programs to be redirected, potentially increasing available capital for small businesses across New York State.
Prioritizes geographic equity. , requiring—where feasible—that reallocated funds from regional trust funds are accessible to eligible borrowers in all regions, aiming to prevent concentration of resources in only a few areas.
Streamlines the funding process. by letting participating lending organizations receive and use reallocated funds without going through a new competitive application process, which could speed up loan delivery to businesses in need.
Enables full principal funding for loans. , allowing lending organizations to use reallocated funds to cover up to 100% of each loan’s principal, which may be especially important for small businesses with limited collateral or resources.
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Who cares
Empire State Development
The bill would authorize the corporation to shift funds from the regional and commercial district revolving loan trust funds into the small business revolving loan fund program.
Retail businesses in commercial districts
Loans using reallocated commercial district trust funds would be reserved for retail businesses within a commercial district.
Eligible small business borrowers statewide
The corporation would have to make loans using reallocated regional trust funds accessible in all regions of the state to the extent feasible.
Participating lending organizations
Existing participants in either trust fund or the program could receive reallocated funds without a new competitive solicitation and could be authorized to use those funds for up to 100 percent of a loan’s principal.
Headline styles
Expand Small Business Loans
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 61
No co-sponsors yet.
History
- Referred to corporations, authorities and commissions
- Returned to senate
- Died in assembly
- Referred to small business
- Delivered to assembly
- Passed senateVote 63–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.723
- Referred to corporations, authorities and commissions
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5374
2017-2018 Regular Sessions
IN SENATE
March 23, 2017
Introduced by Sen. RANZENHOFER -- (at request of the Empire State Development) -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the New York State urban development corporation act, in relation to the small business revolving loan fund program
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 16-t of section 1 of chapter 174 of the laws of 1968, constituting the New York State urban development corporation act, is amended by adding a new subdivision 17 to read as follows:
17. As provided in this subdivision, the corporation is authorized to reallocate to the program funds from the regional revolving loan trust fund and commercial district revolving loan trust fund. For program loans made with such reallocated funds: (a) loans provided with funds reallocated from the commercial district revolving loan trust fund shall be to retail businesses within a commercial district; (b) to the extent feasible, the corporation shall apply the reallocated funds from the regional revolving loan trust fund so that program eligible borrowers in all regions of the state shall have access to loans funded with such reallocated funds; (c) the corporation may authorize a lending organization to fund up to one hundred percent of the principal amount of each loan with reallocated funds; (d) lending organizations participating in the regional revolving loan trust fund and commercial district revolving loan trust fund, or the program may receive such reallocated funds without participating in a new competitive solicitation; and (e) subject to the provisions of this subdivision, all other provisions of this section will apply with respect to the reallocated funds.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09974-02-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the New York State urban development corporation act, in relation to the small business revolving loan fund program
Purpose
This bill would increase the opportunity for the New York State Urban Development Corporation to utilize fully its Small Business Revolving Loan Fund program.
Summary of provisions
Section 1 of the bill would add a new subdivision 17 to Section 16-t of the Urban Development Corporation Act to authorize the reallocation of funding to the Small Business Revolving Loan Trust Fund Program from the Regional Revolving Loan Trust Fund Program and Commercial District Revolving Loan Trust Fund Program. Such funds may only be relocated if they are made to the type of business that would be eligible under the respective program from which the funds were reallocated.
Section 2 of the bill would make it effective immediately.
Justification
The bill would authorize the Corporation to reallocate funding from two revolving loan fund programs to the Small Business Revolving Loan Fund Program. This will allow the Corporation greater flexibility to structure transactions that more closely meet changing market requirements, while still servicing the types of businesses from which the funds being reallocated were intended to benefit.
Legislative history
This bill passed the Senate in 2013 (S.4359) and in 2015 (S.4828).
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.