Bill Text: NY A04507 | 2023-2024 | General Assembly | Amended
Bill Title: Establishes a matching grant program for small businesses receiving phase one or phase two funding under the federal small business innovation research program or the small business technology transfer program to promote commercialization and cover certain expenses.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-01-03 - referred to small business [A04507 Detail]
Download: New_York-2023-A04507-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 4507--A 2023-2024 Regular Sessions IN ASSEMBLY February 16, 2023 ___________ Introduced by M. of A. KELLES -- read once and referred to the Committee on Small Business -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the New York state urban development corporation act, in relation to establishing a matching grant program for certain small businesses receiving funding under the federal small business inno- vation research program or the small business technology transfer program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 1 of chapter 174 of the laws of 1968, constituting 2 the New York state urban development corporation act, is amended by 3 adding a new section 52-a to read as follows: 4 § 52-a. Small business innovation research and small business technol- 5 ogy transfer matching grant program. 1. The corporation, in consultation 6 with the department of economic development's division for small-busi- 7 ness, shall establish a matching grant program to provide funds to small 8 businesses who have been awarded phase one or phase two grants under the 9 federal small business innovation research program or the small business 10 technology transfer program within the last four years. Such grants 11 shall be awarded based on a company's potential for commercialization 12 and job growth. As used in this section, "small business" shall have the 13 same meaning as provided for in section one hundred thirty-one of the 14 economic development law. 15 2. The matching grant program established pursuant to this section 16 shall be staged over a period of three years. The funding amounts for 17 such grant program shall be as follows: 18 (a) For small businesses that have been awarded phase one funding 19 under the federal small business innovation research program or the 20 small business technology transfer program, the amount shall be one EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03425-03-3A. 4507--A 2 1 hundred thousand dollars in year one, two hundred thousand dollars in 2 year two, and five hundred thousand dollars in year three. 3 (b) For small businesses that have been awarded phase two funding 4 under the federal small business innovation research program or the 5 small business technology transfer program, the amount shall be one 6 hundred thousand dollars in year one, two hundred thousand dollars in 7 year two, and five hundred thousand dollars in year three. 8 3. (a) In the first year of the program, twenty small businesses shall 9 be awarded grants of one hundred thousand dollars. 10 (b) In the second year of the program, ten small businesses shall be 11 chosen from the companies that were awarded a grant in the first year, 12 to receive grants in the amount of two hundred thousand dollars. 13 (c) In the third year of the program, four small businesses shall be 14 chosen from the companies that were awarded a grant in the second year, 15 to receive grants or equity, depending on the situation, in the amount 16 of five hundred thousand dollars. 17 4. (a) Such funds awarded pursuant to this section shall be used to 18 expedite commercialization and generally used to cover expenses not 19 allowed under the federal small business innovation research program or 20 the small business technology transfer program, including but not limit- 21 ed to business planning, commercialization, patents and marketing 22 studies in sales efforts. 23 (b) Companies applying to the federal programs named herein shall 24 receive a commitment letter from the corporation that may be included 25 in their applications to the small business innovation research program 26 or the small business technology transfer program or to be used to 27 secure grants from other funding sources. Such commitment letter shall 28 demonstrate contingent state support, and therefore increasing their 29 likelihood of receiving federal funding. State matching grants shall 30 only be provided to small businesses that are selected for an award 31 through the federal small business innovation research program or the 32 small business technology transfer program. 33 5. Such funds shall be awarded on condition that the small business 34 recipient remains headquartered and operates or manufactures in the 35 state for at least five years following the successful commercialization 36 of the business's product or products. Any small business that has 37 received funding under this program that is not headquartered and oper- 38 ates or manufactures in the state for at least five years following the 39 successful commercialization of the business's product or products shall 40 return all grant awards to the state. If the small business ceases oper- 41 ations before five years after the commercialization of its product or 42 products, such business shall be eligible for a waiver of this clawback 43 provision, as determined by the corporation, in consultation with the 44 department of economic development's division of small business. 45 6. The corporation, in consultation with the department of economic 46 development's division for small business, shall establish the form and 47 manner in which applications for grant awards shall be submitted and 48 shall establish guidelines for the grant program. Preference for grant 49 awards shall be for applicants that can demonstrate to the satisfaction 50 of the corporation that: (a) green and sustainable development is a 51 priority in their business planning, operations or manufacturing. For 52 the purposes of this section, "green and sustainable development" shall 53 mean a business model that promotes the use of products or product 54 components, manufactures, develops technologies or processes that are 55 primarily targeted at reducing greenhouse gas emissions or supporting 56 the use of clean energy in a socially equitable manner;A. 4507--A 3 1 (b) such grant awardees' business headquarters and operations or manu- 2 facturing shall be located in New York state; and 3 (c) grant awardees shall certify to the corporation that future 4 research and development shall be performed principally in this state. 5 The corporation shall review each application for compliance with the 6 eligibility criteria and other requirements set forth in the program 7 guidelines established by the commissioner. The corporation may approve 8 or reject each application or may return an application for modifica- 9 tions, if necessary. 10 7. The corporation, beginning on June first, two thousand twenty-four, 11 and annually thereafter, provided program funds remain, shall submit a 12 report to the governor, the temporary president of the senate, and the 13 speaker of the assembly. Such annual report shall include, but need not 14 be limited to: the number of applicants by stage; the number of appli- 15 cants approved to receive grants; the total amount of grants awarded and 16 the average amount of such grants awarded; and such other information as 17 the corporation determines necessary and appropriate. Such report shall 18 be included on the corporation's website and any other publicly accessi- 19 ble state databases that list economic development programs, as deter- 20 mined by the corporation. 21 § 2. This act shall take effect one year after it shall have become a 22 law. Effective immediately, the addition, amendment and/or repeal of any 23 rule or regulation necessary for the implementation of this act on its 24 effective date are authorized to be made and completed on or before such 25 effective date.
