What's happening
This bill creates a Micro Business Outreach Center Assistance Program to provide technical and financial support for micro businesses in New York.
Why it matters
Strengthens support for the smallest businesses. By targeting micro businesses (defined as those with fewer than five employees), the bill addresses the unique challenges these very small enterprises face, such as limited access to resources, technical assistance, and funding, which are often overlooked by broader small business programs.
Focuses on underserved and isolated communities. The program prioritizes the establishment of outreach centers in geographically or socially isolated areas that are disconnected from mainstream economic activity, potentially reducing barriers faced by entrepreneurs in rural, minority, or low-income neighborhoods.
Promotes coordinated, regional support networks. By establishing a network of outreach centers, the legislation aims to create regional linkages and a coordinated system for sharing information, best practices, and technical assistance, thereby increasing the efficiency and effectiveness of support for micro businesses.
Requires ongoing accountability and improvement. The bill mandates annual reporting on the effectiveness of the program, with recommendations for further legislative action if needed, ensuring that the program remains responsive to evolving business needs and is held accountable for measurable outcomes.
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Who cares
Headline styles
Support for Micro Businesses
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 4
No co-sponsors yet.
History
- Reported and committed to rules
- Referred to commerce, economic development and small business
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.
Help for Micro Businesses
In Assembly Committee · Ways And Means · Sponsor Fred Thiele
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8551
IN SENATE
May 10, 2018
Introduced by Sen. BOYLE -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business
AN ACT to amend the economic development law, in relation to creating the micro business outreach center assistance program
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The economic development law is amended by adding a new article 9-B to read as follows:
ARTICLE 9-B
MICRO BUSINESS OUTREACH CENTER ASSISTANCE PROGRAM Section 216. Definitions.
217. Micro business outreach centers.
218. Micro business outreach center network.
219. Reporting requirement.
§ 216. Definitions. For the purposes of this article the following terms shall have the following meanings:
1. "Micro business" shall mean a sole proprietorship, partnership or family business that has fewer than five employees.
2. "Micro business outreach centers" shall mean a business outreach center that serves the business development needs of specific communities.
3. "Micro business outreach center network" shall mean a network of business outreach centers that provides services throughout a region and helps develop and assist individual micro-enterprise/small business development organizations in the delivery of customized business services to entrepreneurs, as well as capacity-building services to organizations establishing and operating community and micro-enterprise development programs.
§ 217. Micro business outreach centers. 1. There is hereby established within the department a micro business outreach center assistance program. The department is authorized, within amounts appropriated, to provide direct technical and financial assistance to the micro business
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02755-01-7
S. 8551 2
outreach center network, a not-for-profit corporation, for the following activities:
(a) to assist the micro business outreach center in setting up, or to assist the center in helping local sponsor organizations and/or new organizations to set up additional micro business outreach centers, in geographic areas of the state that are widely-separated from each other but are in need of, and would likely benefit from, the establishment of such center;
(b) to assist the micro business outreach center in providing aid for the operation and maintenance of the additional micro business outreach centers so created as well as for the operation and maintenance of its presently existing affiliated micro business outreach centers; and
(c) to assist the micro business outreach center to expand the center's coordination of networking and technical assistance activities among all micro business outreach centers.
2. The department shall provide monies, within available appropriations, in response to a community need for the micro business outreach centers network. The department shall establish criteria for selection and designation of such micro business outreach centers which shall include but not be limited to:
(a) communities that are geographically and/or socially isolated from the mainstream economy;
(b) a coordinated network of client information systems, regional linkages, and operational guidelines;
(c) a model that maximizes the efficient use of scarce existing economic development resources, addresses the recognized need for preloan and post loan technical assistance for growing small business;
(d) facilitating access to the complex infrastructure of economic development programs and small business services, connecting small business to needed information and capital technical assistance.
3. Assistance, services and data as will enable the department to properly carry out its functions, powers, and duties under this article shall be provided by the commissioner and to accomplish the same, the commissioner may request the assistance of other agencies and public corporations and districts.
§ 218. Micro business outreach center network. 1. There is hereby established within the department a micro business outreach center network. The department is authorized within amounts appropriated to provide direct technical and financial assistance to the micro business outreach center network, a not-for-profit corporation, for the following activities:
(a) to assist the micro business outreach center network in setting up, or to assist the center in helping local sponsor organizations and/or new organizations to set up additional micro business outreach centers, in geographic areas of the state that are widely-separated from each other but are in need of, and would likely benefit from, the establishment of such center;
(b) to assist the micro business outreach center network in providing aid for the operation and maintenance of the additional micro business outreach centers so created as well as for the operation and maintenance of its presently existing affiliated micro business outreach centers; and
(c) to assist the micro business outreach center network to expand the center's coordination of networking and technical assistance activities among all micro business outreach centers.
S. 8551 3
2. The department shall provide monies, within available appropriations, in response to a community need for the micro business outreach centers network. The department shall establish criteria for selection and destination of such micro business outreach centers which shall include but not be limited to:
(a) communities that are geographically and/or socially isolated from the mainstream economy;
(b) a coordinated network of client information systems, regional linkages, and operational guidelines;
(c) a model that maximizes the efficient use of scarce existing economic development resources, addresses the recognized need for preloan and post loan technical assistance for growing small business;
(d) facilitating access to the complex infrastructure of economic development programs and small business services, connecting small business to needed information and capital technical assistance.
3. Assistance, services and data as will enable the department to properly carry out its functions, powers, and duties under this article shall be provided by the commissioner and to accomplish the same, the commissioner may request the assistance of other agencies and public corporations and districts.
§ 219. Reporting requirement. The department shall monitor the effectiveness of the direct technical and financial assistance it provides to the micro business outreach center network, incorporated, in order to determine and report to what extent the goals specified in this section have been achieved. The commissioner shall make and file an annual report to the governor, temporary president of the senate and speaker of the assembly within thirty days following the close of the state's fiscal year containing the results of such monitoring pursuant to this section. Such annual report shall contain recommendations for further legislation to implement the purposes of this article if in the judgment of the commissioner new legislation to further effectuate the purposes of this article is warranted.
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the economic development law, in relation to creating the micro business outreach center assistance program
Purpose
To create a means of supporting existing business outreach centers and creating additional centers that are serving micro enterprises as well as providing them with the opportunity to facilitate individuals of communities that are geographically and socially isolated from the main- stream economy with access to economic development counseling services and funds.
Summary of provisions
Adds a new Article 9-B to the economic development law thereby creating the micro business outreach center assistance program.
Read the full memo (615 words)
Justification
Small businesses are the backbone of every community. In this difficult economy, small businesses are the source of the majority of new jobs. Daily, more and more individuals realize the opportunities that exist for people who have their own businesses and the benefits that such small businesses provide to the surrounding community. In New York State, many people that have a talent or idea could become a very successful enterprise if only they knew how to implement it. These are the types of people who are potential micro-enterprise owners-proprie- tors of businesses that begin with five or less employees including the owner, require less than $50,000 in startup capital, and do not have access to the traditional commercial banking sector. Microbusinesses and start-ups have the largest unmet financing needs with 63% and 58%, respectively, reporting a financial shortfall.
Business outreach centers take hard working men and women who may not have the knowledge or experience of how to create a micro business and provide them with the tools they need to start an enterprise; whether it is teaching the individual how to write a business plan or matching the eager entrepreneur with a reasonable loan. With the help of business outreach centers the American dream is actually achievable. These programs are most helpful to minorities, women, and immigrant communi- ties who might not have access to capital and are therefore ineligible to receive loans in the eyes of most major lending companies.
Between 2007 and 2016, there was an increase of 3.5 million women-owned firms. Fully 78% of these net new women-owned firms (nearly 2.8 million) are firms owned by women of color - an average of 842 net new minority women-owned firms were launched each day over the past nine years. As of 2012, there were 709,021 minority-owned businesses and 725,709 women- owned businesses in New York, many of them small businesses. This has been able to occur through the hard work of centers that are already in existence in the New York Metropolitan area. Studies by the Aspen Insti- tute have even shown that these types of services help move the work- ing-poor out of poverty. When women, immigrant, and minority populations have the opportunity to become successful, self-supporting business
people that cater to the needs of their individual communities, local areas are revitalized and the entire State benefits.
This legislation ensures that business outreach centers serving micro- enterprises will be able to receive federal funding as well as provide the opportunity and benefits of these services to a greater population throughout New York State thereby increasing both community wealth and employment opportunities. The State has historically been financially supportive of many such programs and this legislation seeks to ensure that such support continues into the future and is provided to a greater population.
Legislative history
2000: A.11029/S.7743B 2001-02: A.2789A/S.122A 2003-04: A.927 2005-06: A.6704A/S.4063A 2007-08: A.2766/S.1338 2009: A.3193/S.5639 2010: A.10471/S.7968 2011-12: A.6669/S.2825 2013-14: A.4358/S.4574 2015-16: A.7796/S.3443
Fiscal implications
To be determined.
Effective date
This act shall take effect on the one hundred and eightieth (180) day after it becomes law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.