Bill Text: NY A01819 | 2019-2020 | General Assembly | Amended

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Bill Title: Allows businesses to use funds received from the minority- and women-owned business development and lending program for the purpose of refinancing existing debt.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2020-03-13 - print number 1819a [A01819 Detail]

Download: New_York-2019-A01819-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         1819--A

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                    January 17, 2019
                                       ___________

        Introduced  by  M. of A. BICHOTTE, PEOPLES-STOKES, SCHIMMINGER, REYES --
          read once and referred to the Committee  on  Economic  Development  --
          recommitted  to  the  Committee  on Economic Development in accordance
          with Assembly Rule 3, sec. 2 -- committee  discharged,  bill  amended,
          ordered reprinted as amended and recommitted to said committee

        AN  ACT  to  amend the urban development corporation act, in relation to
          allowing businesses to  use  funds  received  from  the  minority  and
          women-owned  business  development and lending program for the purpose
          of refinancing existing debt

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subparagraph  (vii)  of paragraph (c) of subdivision 1 of
     2  section 16-c of section 1 of chapter 174 of the laws of 1968, constitut-
     3  ing the urban development corporation act, as amended by  section  1  of
     4  part  AA  of  chapter  55  of  the  laws  of 2014, is amended to read as
     5  follows:
     6    (vii) refinancing of debt or  equity  invested  in  an  enterprise  or
     7  project,  unless  the  chairperson of the corporation finds the terms of
     8  the original debt to be unreasonable as provided in subparagraph (ix) of
     9  paragraph (d) of this subdivision.
    10    § 2. Subparagraphs (vii) and (viii) of paragraph (d) of subdivision  1
    11  of section 16-c of section 1 of chapter 174 of the laws of 1968, consti-
    12  tuting  the  urban  development  corporation  act, subparagraph (vii) as
    13  amended and subparagraph (viii) as added by section  1  of  part  AA  of
    14  chapter  55 of the laws of 2014, are amended and a new subparagraph (ix)
    15  is added to read as follows:
    16    (vii) establish a comprehensive technical assistance program in  coop-
    17  eration  with the department of economic development to assist minority-
    18  and women-owned businesses and potential minority  and  women-entrepren-
    19  eurs; [and]

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00792-03-9
        A. 1819--A                          2

     1    (viii) notwithstanding any provision of law to the contrary, establish
     2  a minority- and women-owned business investment fund to provide critical
     3  financial  support  to  foster the development of new and emerging ideas
     4  and products of minority- and women-owned business enterprises  as  well
     5  as  to  promote the long-term financial performance and success of early
     6  stage enterprises that are  minority-  and  women-owned  start-ups.  The
     7  selection  of  an  eligible  applicant and beneficiary companies for the
     8  minority- and women-owned business investment fund shall be selected  by
     9  the  process  established  pursuant  to subdivisions two through four of
    10  section sixteen-u of this act. Minority- or women-owned business  enter-
    11  prises  who  participate  in  such  minority-  and  women-owned business
    12  investment fund under this subdivision shall not be precluded from qual-
    13  ifying for any other assistance, grant or loan made available  from  the
    14  state[.]; and
    15    (ix)  provide  for  the  refinancing  of debt or equity invested in an
    16  enterprise or project, provided that the chairperson of the  corporation
    17  determines the terms of the original debt to be unreasonable. The appli-
    18  cant  must  submit  a  written  justification  to the chairperson of the
    19  corporation for each loan explaining why the  current  loan  is  not  on
    20  reasonable  terms.  Unreasonable  terms  of debt may include but are not
    21  limited to:
    22    (1) a demand or balloon maturity feature in the existing note;
    23    (2) the current maturity is not appropriate for the  original  purpose
    24  of the loan;
    25    (3)  the  existing  debt  being refinanced is on a revolving line or a
    26  credit card;
    27    (4) the interest rate is deemed unreasonable by the corporation; or
    28    (5) the loan is over-collateralized.
    29    § 3. This act shall take effect on the ninetieth day  after  it  shall
    30  have become a law. Effective immediately, the addition, amendment and/or
    31  repeal  of  any  rule  or regulation necessary for the implementation of
    32  this act on its effective date are authorized and directed  to  be  made
    33  and completed on or before such effective date.