What's happening
This bill increases the maximum total loan amount a business can borrow under the Excelsior Linked Deposit Program from $2 million to $5 million.
Why it matters
Expanding borrowing limits from $2 million to $5 million means more ambitious business projects can be financed through the Excelsior Linked Deposit Program, potentially boosting business growth and job creation in New York State.
This change could make the program more attractive to mid-sized and rapidly growing businesses, not just small businesses, increasing the program’s impact on local economies.
By allowing higher borrowing, the program may help businesses better manage large capital expenses, invest in new technology, or expand operations, which could be particularly important in competitive or high-cost industries.
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Headline styles
Raise Linked Loan Limit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 41–18
- Advanced to third reading
- 2nd report cal.
- 1st report cal.475
- Referred to finance
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 45–17
Show 3 earlier actions
- Ordered to third reading cal.1362
- Committee discharged and committed to rules
- Referred to finance
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.
Raise Linked Loan Limit
In Assembly Committee · Ways And Means · Sponsor Robin Schimminger
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6165
2019-2020 Regular Sessions
IN SENATE
May 21, 2019
Introduced by Sen. SANDERS -- (at request of the Empire State Development) -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
AN ACT to amend the state finance law, in relation to the Excelsior Linked Deposit Program
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 217 of the state finance law, as amended by section 1 of part H of chapter 60 of the laws of 2011, is amended to read as follows:
§ 217. Linked loans. Linked loans shall be made by lenders pursuant to the program only to eligible businesses in connection with eligible projects. [A linked loan shall be limited to a maximum amount of two million dollars.] An eligible business may receive more than one linked loan. During the life of the linked loan program, the total amount of money that a business can borrow from the linked program is [two] five million dollars. The credit decision for making a linked loan shall be made solely by the lender. Notwithstanding the length of the term of a linked loan, the linked deposit relating to the linked loan shall be for a period of not more than four years.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09724-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the state finance law, in relation to the Excelsior Linked Deposit Program
Purpose of bill
The proposed legislation amends the Excelsior Linked Deposit program to increase the lifetime cap on the total amount of money a company may borrow in the program from $2 million to $5 million and to remove the current $2 million limit on the maximum loan amount a company may receive under the program.
Summary of provisions
Section one of the proposed legislation amends the state finance law to increase the lifetime cap on the total amount of money a company may borrow in the program from $2 million to $5 million. It also removes the current $2 million limit on the maximum loan amount a company may receive under the program.
Section 2 of the proposed legislation provides that it will take effect immediately upon the effective date of the bill.
Justification
The Linked Deposit Program is experiencing increased activity, which is associated with rising interest rates. Year to date activity has increased by 60 percent when comparing 2018 to 2017 activity. In addi- tion to rising interest rates impacting activity, Empire State Develop- ment ("ESD") has contributed to the increase as well by actively promot- ing the program through continued outreach to the banking community, small businesses and minority and women owned enterprises.
To date, Linked Deposit Program assistance has been provided on three hundred and thirty-one (331) loans to minority and/or woman owned firms for a total of $111.28 million, of which six (6) loans have reached their lifetime maximum. Overall, five thousand six hundred and seventy- seven (5,677) loans totaling over $1.9 billion have been approved for assistance, most of those to businesses with one hundred or fewer employees.
There are currently eighty-eight (88) borrowers that have reached their lifetime maximum for Linked Deposit assistance. A majority of these businesses have added employees, which demonstrates the effectiveness of the program and how it supports the growth of the economy.
Since these businesses are no longer able to utilize the program's interest rate reduction, they experience increased cost of capital and will face higher borrowing costs when attempting to expand or improve their operations. They are being penalized unnecessarily for having reached their lifetime maximum and through no fault of their own are paying more to borrow and invest in the growth of their business.
ESD expects these firms would continue to access the program if legally able to. In addition, ESD has heard from borrowers wishing to have the cap raised so they could continue to participated in the program and
from lenders stating it would be beneficial to their business if the lifetime allowance were to be increased.
ESD is confident that an increase to the lifetime maximum would allow the businesses that have reached the maximum to utilize the program again and further invest in the improvement and expansion of their busi- ness.
Prior legislative history
This is a new bill. This bill was previously introduced in 2017 and introduced as 5.6491 (Young) and A.8117 (Schimminger).
Fiscal implications
None.
Effective date
This bill would take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.