What's happening
This bill establishes a loan program to assist small businesses with federal contracts financially impacted by federal government shutdowns.
Why it matters
Targets small businesses with federal contracts. The program specifically assists small businesses that can prove they have an active federal contract and have suffered financial harm due to a federal government shutdown, focusing relief on businesses most likely to be disrupted by federal payment delays.
Strict eligibility and compliance requirements. Applicants must allow state departments to access sensitive tax and employment data (with privacy safeguards), and certify under penalty of perjury that they are in compliance with tax, labor, and environmental laws—aiming to ensure only eligible, law-abiding businesses benefit.
Payroll-focused, short-term loans. The loans provided must be used strictly for payroll purposes and are required to be repaid within 12 months, signaling an intent to prevent layoffs and maintain workforce stability during shutdowns, rather than providing general business relief.
State oversight and adaptability. The Department of Economic Development is empowered to set loan amounts (subject to available funding) and create rules, allowing the program to be responsive to changing shutdown impacts and ensuring proper use of taxpayer funds.
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Who cares
Headline styles
Aid for Federal Contract Workers
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred to rules
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 Federal Contract Workers
In Assembly Committee · Small Business · Sponsor Daniel Rosenthal
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8884
IN SENATE
August 7, 2020
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the economic development law, in relation to creating the federal contract workers 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 23 to read as follows:
ARTICLE 23
FEDERAL CONTRACT WORKERS
ASSISTANCE PROGRAM Section 450. Eligibility criteria.
451. Application and approval process.
452. Federal contract worker assistance program.
§ 450. Eligibility criteria. 1. In order to participate in the federal contract workers assistance program, a business entity must satisfy the following criteria:
(a) The business entity must be a small business;
(b) The business entity must demonstrate that it currently has a contract with the federal government; and
(c) The business entity must demonstrate that their business has been negatively affected financially due to a federal government shutdown.
2. For purposes of this article the term "small business" shall have the same meaning as section one hundred thirty-one of this chapter.
§ 451. Application and approval process. 1. A business entity must submit a completed application in such form and with such information as prescribed by the commissioner.
2. As part of such application, each business entity must:
(a) provide such documentation as the commissioner may require in order for the commissioner to determine that the business entity is eligible for the program;
(b) agree to allow the department of taxation and finance to share its tax information with the department. However, any information shared as
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08951-02-9
S. 8884 2
a result of this agreement shall not be available for disclosure or inspection under the state freedom of information law;
(c) agree to allow the department of labor to share its tax and employer information with the department. However, any information shared as a result of this agreement shall not be available for disclosure or inspection under the state freedom of information law;
(d) allow the department and its agents access to any and all books and records the department may require to monitor compliance; and
(e) certify, under penalty of perjury, that it is in substantial compliance with all environmental, worker protection, and local, state, and federal tax laws.
§ 452. Federal contract worker assistance program. 1. The state may provide loans to be administered by the department to assist business entities which meet the criteria of section four hundred fifty-one of this article and whose applications have been approved pursuant to section four hundred fifty-one of this article.
2. All loans shall be repaid by the business entity within twelve calendar months from when such funds are disbursed to the business entity.
3. Such loans shall only be used by the business entity for payroll purposes.
4. The amount of such loans shall be determined by the commissioner but shall not exceed the amount made available therefor by appropriation.
5. The commissioner shall promulgate rules and regulations for purposes of carrying out the provisions of this article.
§ 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 economic development law, in relation to creating the federal contract workers assistance program
Purpose or general idea of bill
Directs the economic development corporation to establish a payroll loan program for New York based small businesses that contract with the federal government, especially for periods of federal government shut- down
Summary of specific provisions
Section 1: Creates a new article to economic development program and establishes definitions and criteria to participate in the program. Directs the commissioner of EDC to promulgate rules and regulations for the program
Section 2: Sets the effective date
Justification
During periods of federal government shutdown, many federal employees are asked to work without pay or are furloughed. Essential employees continue to work with the expectation that they will receive back pay once the shutdown ends. However, essential government contractors are often not afforded this security. New York small businesses with federal contracts are expected to continue to pay their employees while the federal government ceases payment. This forces many businesses to take drastic actions or default on their contracts, essentially shuttering the entity. This situation is especially poignant for essential contrac- tors that provide services like security to the government. The contracted company is expected to pay their employees during the period of the shutdown with diminishing liquid assets. This legislation would establish a loan program overseen by EDC to grant payroll loans to eligible companies. The loan would be repaid within one year of the federal government making repayments to the contracted company.
Prior legislative history
This is a new bill.
Fiscal implications
To be determined.
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.