What's happening
This bill expands small business loan access to microbusinesses with under five employees, especially in economically distressed areas.
Why it matters
Targets the smallest businesses. by formally defining a "microbusiness" as one with fewer than five employees, ensuring that very small, independently-owned enterprises are recognized in state law and eligible for specific support.
Directs financial resources specifically to microbusinesses. by requiring at least $5 million in loan program funds be allocated for micro-loans, potentially increasing access to capital for businesses that often face the biggest barriers to traditional financing.
Prioritizes economically distressed communities. by extending eligibility to microbusinesses located in "empire zones," "empowerment zones," "highly distressed areas," and "renewal communities," aiming to spur job creation and economic activity where it is most needed.
Levels the playing field for microbusinesses. by making them eligible for funding on the same basis as larger small businesses, which could reduce disparities in economic development support and help stabilize vulnerable local economies.
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Who cares
New York microbusiness owners
Independently owned, non-dominant businesses with fewer than five employees would become eligible to apply for small business revolving loan funding in the same manner as other small businesses.
Microbusinesses in designated distressed areas
Those operating for five years in an empire zone, empowerment zone, highly distressed area or renewal community would become eligible for linked deposit interest rate reductions.
Lending organizations
They would receive at least $5 million in program funds from the Urban Development Corporation to make micro-loans to microbusinesses.
New York State Urban Development Corporation
It would be required to provide that minimum allocation for microbusiness lending.
Headline styles
Expand Loans for Microbusinesses
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to commerce, economic development and small business
- Referred to commerce, economic development and small business
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1543
2019-2020 Regular Sessions
IN SENATE
January 15, 2019
Introduced by Sen. KENNEDY -- 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, the state finance law and the New York state urban development corporation act, in relation to making small business loans available to microbusinesses
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 section 131-a to read as follows:
§ 131-a. Definition of a microbusiness. For the purposes of this chapter, a microbusiness shall be deemed to be a business that is resident in this state, independently owned and operated, not dominant in its field and employs under five persons.
§ 2. Paragraph (f) and subparagraph 6 of paragraph (g) of subdivision 11 of section 213 of the state finance law, paragraph (f) as added by chapter 705 of the laws of 1993, subparagraph 6 of paragraph (g) as added by section 1 of part HH of chapter 59 of the laws of 2013, are amended and a new paragraph (h) is added to read as follows:
(f) any service business that is independently owned and operated, is not dominant in its field, employs one hundred or fewer persons on a full-time basis within the state, and is seeking financing through the program for a project that will result in the retention or creation of permanent private sector jobs within the state, other than a business that sells a service rendered at a facility personally by an individual for another individual, directly, without the intervention of a third party, or a professional service business such as health, legal, accounting, engineering, or architectural services[.]; or
(6) small scale systems integration and packaging[.]; or
(h) a microbusiness, as defined by section one hundred thirty-one-a of the economic development law, that has been in operation for five years
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02107-01-9
S. 1543 2
and that is located in an empire zone, empowerment zone, a highly distressed area or renewal community.
§ 3. Section 16-t of section 1 of chapter 174 of the laws of 1968, constituting the urban development corporation act is amended by adding a new subdivision 17 to read as follows:
17. Notwithstanding anything to the contrary in this section, the corporation shall provide at least five million dollars in program funds pursuant to this section to lending organizations for the purpose of making micro-loans to microbusinesses, as defined by section one hundred thirty-one-a of the economic development law. Microbusinesses shall be eligible to apply for funding in the same manner as other small businesses pursuant to subdivision three of this section.
§ 4. 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 economic development law, the state finance law and the New York state urban development corporation act, in relation to making small business loans available to microbusinesses
Purpose
To provide that microbusinesses in New York are eligible for small busi- ness revolving loans and the linked deposit interest rate reductions.
Summary of provisions
Section 1 adds a new section 131-a to the economic development law to include the definition of a microbusiness as one that is resident in New York state, independently owned and operated, not dominant in its field, and employs under five persons.
Section 2 amends paragraph f subdivision 11 of section 213 of the state finance law, as added by chapter 705 of the laws of 1993, by adding a new paragraph h stating that a microbusiness (that has been in operation for 5 years and that is located in an empire zone, empowerment zone, a highly distressed area of renewal community) is an eligible business for the purpose of the excelsior linked deposit program.
Section 3 amends section 16-t of section 1 of chapter 174 of the laws of 1968 by adding a new subdivision 16 to provide that $5 million in program funds be available for micro-loans to microbusinesses, which will be eligible to apply in the same manner as other small businesses.
Justification
Microbusinesses have been estimated to constitute around 90% of all businesses within New York State by the Association for Enterprise Opportunity. A microbusiness is a business that has 5 or fewer employ- ees. Given their nature, it is often difficult for microbusiness owners to access capital through lending institutions. A microbusiness can consist of a wide variety of businesses that run from 'mom and pop' shops to start-up tech companies. These businesses are both the backbone and the future of our economy.
Given their prevalence and importance, this bill adds the definition of microbusinesses to the law in order to allow for their inclusion in successful state programs, including the linked deposit program and small business revolving loan fund.
Prior legislative history
2017-18: S.1802 Referred to Commerce, Economic Development, and Small Business 2015-16: Referred to Commerce, Economic Development, and Small Business 2014: S.546 Referred to Commerce, Economic Development, and Small Busi- ness 2012: S.7556 Referred to Commerce, Small Business Economic Development
Fiscal implications
No additional cost to the state is estimated.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.