What's happening
This bill requires New York's small business revolving loan fund to specifically target and market loans to veteran-owned and service-disabled veteran-owned enterprises.
Why it matters
Expanding loan access to veteran and service-disabled veteran-owned businesses could help address unique barriers these groups face, such as higher rates of unemployment or difficulty securing traditional financing after military service.
By requiring targeted marketing, the bill aims not just to make loans available, but to actively inform and assist veteran entrepreneurs, potentially increasing their participation in the state’s small business economy.
Aligning state definitions with federal standards (referencing 15 U.S.C. section 632(Q)(3) and Article 17-B of the Executive Law) helps ensure consistency, potentially making it easier for veteran-owned businesses to navigate both state and federal programs.
The inclusion of veteran-owned and service-disabled veteran-owned businesses alongside minority- and women-owned businesses in the program may foster greater economic diversity and promote equitable business development across historically underrepresented groups.
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Who cares
Headline styles
Support Loans for Veteran Businesses
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2739
2019-2020 Regular Sessions
IN SENATE
January 29, 2019
Introduced by Sen. ADDABBO -- 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 requiring the small business revolving loan fund to target and market to veteran-owned enterprises and service-disabled veteranowned enterprises
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 3 of section 16-t of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, as amended by chapter 254 of the laws of 2016, is amended to read as follows:
3. Program loans to small businesses and micro-businesses shall be targeted and marketed to minority and women-owned enterprises, veteranowned enterprises as set forth in 15 U.S.C. section 632(Q)(3), as amended from time to time, and service-disabled veteran-owned enterprises as set forth in article seventeen-B of the executive law, and other small businesses and micro-businesses that are having difficulty accessing traditional credit markets. Program loans to small businesses and micro-businesses shall be used for the creation and retention of jobs, as defined by the corporation, including: (a) working capital; (b) the acquisition and/or improvement of real property; (c) the acquisition of machinery and equipment, property or improvement; or (d) the refinancing of debt obligations. There shall be two categories of loans to small businesses and micro-businesses: a micro loan that shall have a principal amount that is less than twenty-five thousand dollars and a regular loan that shall have a principal amount not less than twentyfive thousand dollars. Prior to receiving program funds, the lending organization must certify to the corporation that such loan complies with this section and rules and regulations promulgated for the program
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06851-01-9
S. 2739 2
and that the lending organization has performed its obligations pursuant to and is in compliance with this section, the program rules and regulations and all agreements entered into between the corporation and the lending organization. The program funds amount used by the lending organization to fund a program applicant loan shall not be more than fifty percent of the principal amount of such loan. The program funds amount used by the lending organization to fund a program applicant loan shall not be greater than one hundred and twenty-five thousand dollars. Minority- and women-owned business enterprises, veteran-owned enterprises as set forth in 15 U.S.C. section 632(Q)(3), as amended from time to time, and service-disabled veteran-owned enterprises as set forth in article seventeen-B of the executive law, and other small businesses or micro-businesses who access such program loans under this subdivision shall not be precluded from accessing such short-term financing loans provided under subdivision eleven of this section.
§ 2. 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 New York state urban development corporation act, in relation to requiring the small business revolving loan fund to target and market to veteran-owned enterprises and service-disabled veteran- owned enterprises
Purpose
The purpose of this bill is to require the small business revolving loan fund in the Empire State Development Corporation to target and market to veteran-owned enterprises and service disabled veteran-owned enter- prises.
Summary of provisions
Section 1 amends the New York state urban development corporation act to require the small business revolving loan fund to target and market to veteran-owned enterprises as set forth in 15 U.S.C. section 632(Q)(3), as amended from time to time, and service disabled veteran owned enter- prises as set forth in article seventeen-B of the executive law.
Section 2 of the bill establishes the effective date.
Justification
The small business revolving loan fund currently targets and markets to minority and women-owned enterprises. Veterans have contributed signif- icantly to defending the freedoms that we cherish. In recent years the state has increased its specific set-asides for businesses owned by service disabled veteran owned enterprises in recognition of their service and unique contributions. In recognition of their service to the nation, this bill would require the small business revolving loan fund to target and market to veteran-owned enterprises and service disabled veteran-owned enterprises, mirroring similar efforts already underway in the state.
Prior legislative history
2017: S. 4230 - Referred to Veterans, Homeland Security and Military Affairs 2018: S. 4230 - Referred to Veterans, Homeland Security and Military Affairs
Fiscal implications
There is no cost in adding these veteran-owned enterprises to the eligi- bility criteria. Increased eligible applicants will likely lead to a need for an increase in the current appropriation level for the revolv- ing loan fund, to ensure that there is not a loss in opportunity for currently eligible applicants. Any such increased appropriations shall be negotiated within the context of the yearly state budget.
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.