Bill Text: NY A07360 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to the small business regional revolving loan program.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Introduced) 2020-01-08 - referred to small business [A07360 Detail]

Download: New_York-2019-A07360-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          7360
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                     April 26, 2019
                                       ___________
        Introduced  by M. of A. REYES -- read once and referred to the Committee
          on Small Business
        AN ACT to amend the New York state urban development corporation act, in
          relation to the small business regional revolving loan trust fund  and
          the small business regional revolving loan program
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Statement of legislative  intent.  The  legislature  hereby
     2  finds  and  declares  that small businesses are the economic backbone of
     3  the state and the source of a majority  of  new  jobs.  The  legislature
     4  further finds that such businesses often have difficulty obtaining small
     5  amounts of capital from traditional banking organizations that is neces-
     6  sary to start-up, improve, or expand operations. State assistance in the
     7  form  of  loans to meet such capital gaps would enable the formation and
     8  expansion of small businesses across the state and,  thus,  provide  job
     9  opportunities  to  the  state's  citizens. The legislature further finds
    10  that the existing regional revolving loan program  of  the  state  urban
    11  development  corporation  demonstrated  that  it  is  more efficient and
    12  effective to provide such loans through regional  not-for-profit  corpo-
    13  rations  that  are  knowledgeable  about  local  businesses and economic
    14  conditions. Therefore, it is the intent of the  legislature  to  improve
    15  job  opportunities  in  the  state by revitalizing the urban development
    16  corporation's regional revolving loan program and re-naming it the small
    17  business regional revolving loan program.
    18    § 2. The New York state urban development corporation created by chap-
    19  ter 174 of the laws of 1968 is hereby directed  to  audit,  pursuant  to
    20  subdivision  (19)  of section 16-a of section 1 of the urban development
    21  corporation act, each  existing  regional  corporation  administering  a
    22  small business regional revolving loan fund and to either recertify such
    23  regional corporation or decertify such regional corporation and competi-
    24  tively  select  a successor corporation to administer the small business
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06075-02-9

        A. 7360                             2
     1  regional revolving loan fund.  In the case of regions that do not have a
     2  regional corporation administering a small business  regional  revolving
     3  loan  fund  or  that  have a decertified regional corporation, the urban
     4  development corporation shall issue a request for proposals, pursuant to
     5  the  provisions  of  section  16-a of section 1 of the urban development
     6  corporation act, to administer small business  regional  revolving  loan
     7  funds. The corporation shall select from the proposals received the most
     8  qualified  applicant  in  each region pursuant to subdivisions (4), (5),
     9  and (6) of such section 16-a. If there is no applicant or  no  qualified
    10  applicant in a region of the state, that region shall not participate in
    11  the  small  business  regional  revolving  loan fund program. The corpo-
    12  ration, from money available for this purpose, shall allocate  funds  to
    13  each  regional  corporation  pursuant  to  subdivision 1 of such section
    14  16-a.
    15    § 3. Section 16-a of section 1 of chapter 174 of  the  laws  of  1968,
    16  constituting  the  New  York state urban development corporation act, as
    17  amended by chapter 477 of the laws of 2002, subdivision 3-a as added  by
    18  chapter  474  of  the laws of 2017, subdivision 20 as amended by chapter
    19  378 of the laws of 2018 and subdivision 21 as amended by chapter 524  of
    20  the laws of 2005, is amended to read as follows:
    21    § 16-a. [Regional] Small business regional revolving loan program. (1)
    22  The  corporation  shall establish a fund to be known as the "small busi-
    23  ness regional revolving loan trust fund" and shall pay  into  such  fund
    24  any  monies  made  available  to  the corporation for such fund from any
    25  source. The monies held in or credited to the  fund  shall  be  expended
    26  solely for the purposes set forth in this section. The corporation shall
    27  not  commingle  the  monies  of  such  fund with any other monies of the
    28  corporation or any monies held in trust by the corporation.
    29    (2) The corporation shall allocate any monies made available for  such
    30  fund  for  the  purpose  of  making grants to regional corporations. The
    31  grants shall be allocated as follows:
    32    (a) fifty percent divided equally among the regions;
    33    (b) fifty percent according to a formula weighted in  favor  of  those
    34  regions  with  the greatest levels of economic distress as determined by
    35  poverty rates, number of persons receiving public assistance,  unemploy-
    36  ment  rates,  rate  of  employment  decline and such other indicators of
    37  economic distress as the corporation deems appropriate; and
    38    (c) in the event a regional corporation advises the  corporation  that
    39  it  does  not  require  all  or a portion of the funds to be distributed
    40  pursuant to this subdivision, such funds shall be re-distributed by  the
    41  corporation equally among the other regional corporations.
    42    (3)  In  accordance with the rules and regulations of the corporation,
    43  each regional corporation  shall  establish  two  special  accounts  for
    44  monies  received  by the regional corporation pursuant to the provisions
    45  of this section. The grant monies received from the  corporation,  earn-
    46  ings  on such monies, and any principal repayments shall be deposited in
    47  a loan fund account; any interest earned by the regional corporation  on
    48  loans  will  be  deposited  in  a separate interest repayment account. A
    49  regional corporation shall be authorized to provide financing assistance
    50  to eligible projects. Any interest earned from its loans may be used  by
    51  a  regional  corporation  for  the  cost  of  administering the programs
    52  authorized by this section.
    53    (3-a) Notwithstanding subdivision three of this section, where  appli-
    54  cable,  the corporation is authorized to enter into agreements as may be
    55  necessary  for  the  administration  and  reporting  of  funds   repaid,
    56  received,  expended  or  collected  in  a  manner  consistent  with  the

        A. 7360                             3
     1  provisions in section sixteen-t of this act. The use of  such  funds  by
     2  the  corporation  shall  be  consistent  with  the terms, conditions and
     3  restrictions set forth in subdivision four of this section,  to  provide
     4  financial  assistance  to  eligible  regional corporations as defined in
     5  subdivision eighteen of section three of this act. Outstanding expenses,
     6  loans and other obligations executed prior to the effective date of this
     7  subdivision shall be subject to the terms and conditions of the original
     8  contract or contracts.
     9    (4) Regional corporations shall be selected by  the  corporation  from
    10  among  eligible  applicants  to  administer  a  small  business regional
    11  revolving loan program. An eligible applicant shall:
    12    (a) represent at least two entire contiguous counties;
    13    (b) have available to it staff with sufficient  expertise  to  analyze
    14  applications  for  financial  assistance, to regularly monitor financial
    15  assistance to clients, and have made arrangements to provide  management
    16  or technical assistance to clients;
    17    (c)  have an effective plan to market its services to small businesses
    18  through such entities as chambers of commerce,  industry  trade  associ-
    19  ations, banks, local development corporations, community based organiza-
    20  tions and industrial development agencies; and
    21    (d) have established a loan committee composed of five or more persons
    22  experienced  in  commercial  lending or in the operation of a for-profit
    23  business and a staff person of the regional office of the department  of
    24  economic development. Such loan committee shall review every application
    25  to  the  regional  corporation for financial assistance pursuant to this
    26  section, shall determine the feasibility of the transaction proposed  in
    27  the  application  and shall recommend to the board of directors or other
    28  governing body of the regional corporation such action as the  committee
    29  deems appropriate.
    30    (5)  Applications  to  the  corporation for certification or recertif-
    31  ication as a regional corporation shall:
    32    (a) describe the applicant corporation,  including  its  organization,
    33  membership, loan committee, staff, and sources of other funds, if any;
    34    (b) identify the geographic region to be served;
    35    (c)  explain  the methods and criteria to be used in determining firms
    36  eligible for financial  assistance  from  the  small  business  regional
    37  revolving loan program;
    38    (d) describe the means for coordinating financial assistance available
    39  from  the  small business regional revolving loan program with financial
    40  assistance available from other public funding sources within the region
    41  and how such program will be used  to  leverage  private  financing  for
    42  projects;
    43    [(e)  at any time, the corporation may consider proposals to reconfig-
    44  ure geographic areas served by regional corporations;] and
    45    [(f)] (e) contain such other  information  as  the  corporation  deems
    46  appropriate.
    47    (6)  The  corporation  shall  select,  from among eligible applicants,
    48  regional corporations to administer  revolving  loan  programs,  on  the
    49  basis of:
    50    (a)  the  ability of the regional corporation to administer the finan-
    51  cial assistance programs authorized under this section;
    52    (b) the extent of coordination with other publicly supported financial
    53  assistance programs available  within  the  region  represented  by  the
    54  regional corporation;
    55    (c) the degree of public and private support within the region for the
    56  applicant regional corporation; and

        A. 7360                             4
     1    (d)  the  ability of the regional corporation to provide financial and
     2  other assistance to businesses located in distressed  areas  within  the
     3  region.
     4    (6-a)  The  corporation  shall,  every five years, recertify that each
     5  regional corporation has complied with the terms and conditions of  this
     6  section.  In the event a regional corporation is not recertified, or its
     7  certification is withdrawn pursuant  to  subdivision  nineteen  of  this
     8  section, then the corporation shall give written notice to such regional
     9  corporation  which shall thereafter neither make new loans nor undertake
    10  new obligations except upon written approval  of  the  corporation.  The
    11  corporation  may  thereafter certify another regional corporation in the
    12  manner provided in this section for the  selection  of  regional  corpo-
    13  rations. Upon the certification of a successor regional corporation, all
    14  remaining  loan  funds, records and accounts of the regional corporation
    15  not recertified shall be transferred to the corporation and the regional
    16  corporation not recertified shall cease to  function  pursuant  to  this
    17  section.  The  corporation  shall transfer returned funds to a successor
    18  regional corporation, or in the event no successor regional  corporation
    19  is formed, equally to other existing regional corporations.
    20    (7)  A regional corporation certified by the corporation shall use the
    21  funds received from the corporation, subject to  the  terms,  conditions
    22  and restrictions set forth in this section, to provide financial assist-
    23  ance  to  eligible  businesses  as  defined  in subdivision seventeen of
    24  section three of this act, for projects that demonstrate  a  substantial
    25  likelihood of providing increases in net new permanent jobs or retaining
    26  jobs in businesses that need such financial assistance to remain viable.
    27  The regional corporation certified by the corporation shall also use the
    28  funds  received  from the corporation, subject to the terms, conditions,
    29  and restrictions set forth in this section, to provide financial assist-
    30  ance to micro-enterprises, defined as any commercial business with  five
    31  or fewer employees, one or more of whom is the owner.
    32    (8)  The  decision  to  approve or reject an application for financial
    33  assistance pursuant to the provisions of this section shall be made by a
    34  majority of the directors of the regional corporation, and such decision
    35  shall be final. No member of the board or  other  governing  body  of  a
    36  regional corporation shall participate in a decision on a project appli-
    37  cation  when  such  member  is a party to or has a financial interest in
    38  such project. Any member who cannot  participate  in  a  decision  on  a
    39  project  application for such reason shall not be counted as a member of
    40  the board or other governing body for purposes of determining the number
    41  of members required for a majority vote on such application.
    42    (9) No employee or officer of any  regional  corporation  shall  be  a
    43  party  to  or  have  any financial interest in any project that receives
    44  financial assistance pursuant to this section.
    45    (10) A regional corporation, in approving applications  for  financial
    46  assistance, shall give priority to projects:
    47    (a) that will provide increases in net new permanent jobs;
    48    (b)  located in economically distressed areas as defined by the corpo-
    49  ration or employing persons who live in such areas;
    50    (c) of minority or women-owned enterprises  or  enterprises  owned  by
    51  dislocated  workers, such workers as defined in the Workforce Investment
    52  Act (P.L. 105-220); and
    53    (d) of businesses in the early stages of development  that  have  been
    54  denied access to credit.
    55    (11) The funds allocated to each regional corporation pursuant to this
    56  section may be used to guarantee the repayment of a working capital loan

        A. 7360                             5
     1  provided  by  a  banking  organization  to  finance an eligible project.
     2  Guarantees may be provided for up to  ninety  percent  of  the  required
     3  total project financing, provided that no more than one hundred thousand
     4  dollars  may  be  guaranteed for any project. Guarantees may be made for
     5  the following types of financing: short and medium term loans for  work-
     6  ing  capital,  revolving  lines  of  credit,  and seasonal inventory and
     7  accounts receivable loans. Guarantees may  be  made  for  up  to  ninety
     8  percent  of  the required total financing up to a maximum of one hundred
     9  fifty thousand dollars for interim financing  where  another  lender  or
    10  guarantor  will  provide  permanent  financing within one hundred eighty
    11  days. In no event may a loan guarantee be for a term  longer  than  five
    12  years. Any loan made by a banking organization that is guaranteed pursu-
    13  ant  to this subdivision shall be secured by a security agreement, chat-
    14  tel paper, loan agreement, or such other instruments or documents deemed
    15  necessary or convenient by the regional corporation to secure the  loan.
    16  Any  guarantee  made  pursuant  to this subdivision shall be backed by a
    17  minimum reserve within the account established by each  regional  corpo-
    18  ration  of at least twenty-five percent of the amount guaranteed that is
    19  outstanding.
    20    (11-a) A regional corporation,  in  addition  to  receiving  funds  as
    21  provided  in  this section, may also apply for and accept funds from any
    22  other source for the purpose of furthering  its  goals  and  objectives.
    23  Such  funds  may  be  used in the same manner as funds received from the
    24  corporation to carry out the purposes of this section.
    25    (12) The funds of each regional corporation derived pursuant  to  this
    26  section  may  be  used to provide loans for working capital for eligible
    27  projects; provided that the amount of the loan does  not  exceed  ninety
    28  percent  of  the  total  project  cost, or one hundred thousand dollars,
    29  whichever is less. The interest rate and the terms [on]  of  such  loans
    30  shall  be  determined by the regional corporation, but in no event shall
    31  the interest rate be less than [five percent] the federal discount rate.
    32  The term of any loan shall not exceed five years.  All  loans  shall  be
    33  secured by lien positions on collateral at the highest level of priority
    34  that can accommodate the borrower's ability to raise sufficient debt and
    35  equity capital for the project.
    36    (13) A regional corporation shall not provide any financial assistance
    37  authorized by this section unless the following conditions are met:
    38    (a)  the  applicant  has demonstrated that there is little prospect of
    39  obtaining the project financing requested from other public  sources  of
    40  funding  within  the  region,  including local revolving loan funds, and
    41  that there is little prospect of obtaining  adequate  project  financing
    42  from  private  sources  of  capital, or in the case of a loan guarantee,
    43  that there is little prospect of obtaining project financing without the
    44  guarantee; except that in the case of local revolving loan funds, finan-
    45  cial assistance from the small business  regional  revolving  loan  fund
    46  account  may  be  provided  for  a project in conjunction with financial
    47  assistance from a local revolving loan fund,  provided  that  assistance
    48  from  the small business regional revolving loan fund is no greater than
    49  that provided by the local revolving loan fund, and that a project qual-
    50  ifying for financial assistance available from a  local  revolving  loan
    51  fund is not denied such assistance;
    52    (b)  the  applicant  has  a  minimum  equity  interest of at least ten
    53  percent in the business or project;
    54    (c) there is a reasonable prospect of repayment;
    55    (d) the project is located in the region represented by  the  regional
    56  corporation;

        A. 7360                             6
     1    (e) the project will comply with any applicable environmental rules or
     2  regulations;
     3    (f)  the applicant has certified that it will not discriminate against
     4  any employee or any applicant for employment because of race,  religion,
     5  color, national origin, sex, or age;
     6    (g)  a  staff  member  or a representative of the regional corporation
     7  acting in an official capacity has personally visited the  project  site
     8  and/or the applicant's place of business; and
     9    (h)  financial  commitments  for  the  project have been obtained from
    10  other public and private sources.
    11    (14) Grants made by the corporation pursuant to this section shall not
    12  be made available for:
    13    (a) projects that would result in the relocation of any business oper-
    14  ation from one municipality within the state to  another,  except  under
    15  one  of  the  following  conditions:   (i) when a business is relocating
    16  within a municipality with a population of at least  one  million  where
    17  the  governing  body  of  such municipality approves such relocation; or
    18  (ii) the regional corporation notifies each municipality from which such
    19  business operation will be relocated and  each  municipality  agrees  to
    20  such relocation;
    21    (b)  projects of newspapers, broadcasting or other news media; medical
    22  facilities, libraries, community or civic centers; or public infrastruc-
    23  ture improvements;
    24    (c) refinancing any portion of the total project cost or other  exist-
    25  ing  loans  or  debts  of an applicant, except for the purpose of trans-
    26  ferring to the employees or to other  local  interests  ownership  of  a
    27  company  that  would  otherwise  depart  from  or cease or substantially
    28  reduce operations in the state  and  except  when  such  refinancing  is
    29  required  to  enable  a  viable business to maintain or expand its oper-
    30  ations in the state;
    31    (d) providing funds, directly or  indirectly,  for  payment,  distrib-
    32  ution,  or  as a loan, to owners, partners or shareholders of the appli-
    33  cant enterprise, except as ordinary income for services rendered; and
    34    (e) retail projects, except where the regional corporation finds there
    35  will be an increase in net new permanent jobs.
    36    (15) A regional corporation may  charge  application,  commitment  and
    37  loan  guarantee  fees  pursuant  to  a  schedule  of fees adopted by the
    38  regional corporation and approved by the corporation.
    39    (16) The regional corporations shall submit  annual  reports  for  the
    40  previous fiscal year to the corporation describing the financial assist-
    41  ance  provided  pursuant  to  this  section,  including:  the  number of
    42  projects assisted;  the  amount  and  type  of  assistance  provided;  a
    43  description of the projects; the number of jobs created or retained; the
    44  status  of outstanding loans, guarantees, earnings and account balances;
    45  and such other information as the corporation may require.
    46    (17) The corporation shall, assisted by the commissioner  of  economic
    47  development and in consultation with the department of economic develop-
    48  ment,  promulgate  rules  and  regulations  in accordance with the state
    49  administrative procedure act setting forth procedures to be followed by,
    50  and the responsibilities and obligations of, regional  corporations  and
    51  the corporation. Such rules and regulations shall be consistent with the
    52  program  plan required by subdivision nineteen of section one hundred of
    53  the economic development law.
    54    (18) For any positions opened as a result of  assistance  provided  in
    55  this  section, businesses so assisted shall first consider unemployed or
    56  low income  individuals  eligible  to  participate  in  programs  funded

        A. 7360                             7
     1  through  the  Workforce  Investment  Act  (P.L.  105-220)  who  shall be
     2  referred to the business by local workforce  investment  boards  created
     3  pursuant to such act or by the job service division of the department of
     4  labor.
     5    (19)  The corporation shall annually conduct an audit of each regional
     6  corporation to ensure conformity of  all  aspects  of  program  adminis-
     7  tration  and  of  financial assistance transactions with the substantive
     8  and procedural provisions of this section. In the event that the  corpo-
     9  ration finds instances of substantive noncompliance by a regional corpo-
    10  ration  with  any  of  the provisions of this section and such instances
    11  were, or should have been, known to be in  noncompliance,  the  regional
    12  corporation  shall return, within thirty days, upon demand by the corpo-
    13  ration, all uncommitted grant funds on hand and provide an accounting of
    14  the loans currently outstanding.
    15    The corporation may withdraw a regional corporation's certification:
    16    (a) when a member of a board of directors or other governing body,  an
    17  officer  or  an employee of said regional corporation is party to or has
    18  financial interests in loan projects;
    19    (b) when said regional corporation fails to comply with  the  require-
    20  ments for project loans pursuant to this section; or
    21    (c)  when  a  regional  corporation makes no loans within the previous
    22  fiscal year and there is more than one hundred thousand dollars  remain-
    23  ing in its loan fund account.
    24    The  corporation  shall  transfer  funds  returned  from a decertified
    25  regional corporation to a successor regional corporation, or,  if  there
    26  be  none,  distribute  such  funds equally among other existing regional
    27  corporations. Outstanding loans and other obligations payable to such  a
    28  decertified  regional  corporation  shall  be  assigned to its successor
    29  regional corporation, or to the corporation or an  agent  designated  by
    30  the  corporation upon such terms and conditions as the corporation shall
    31  determine.
    32    (20) [Reporting.] (a) The lending organization  shall  submit  to  the
    33  corporation  annual  reports  stating: the number of program loans made;
    34  the amount of program funding used for loans; the use of  loan  proceeds
    35  by  the  borrower; the number of jobs created or retained; the status of
    36  each outstanding program loan, including fund balance;  and  such  other
    37  information as the corporation may require.
    38    (b)  The  corporation  shall,  on  or before October 1, 1988 and on or
    39  before each October first thereafter, submit a report  to  the  governor
    40  and  the  legislature on the operations and accomplishments of the small
    41  business regional revolving loan program. Such report  shall  include  a
    42  summary  of  the information contained in the reports submitted pursuant
    43  to subdivision sixteen of this section and of the results of the  audits
    44  performed  by  the  corporation pursuant to subdivision nineteen of this
    45  section, and shall set forth the status of the small  business  regional
    46  revolving loan program for the previous fiscal year, including grants to
    47  the  regional corporations, earnings and account balances as reported to
    48  the corporation. The report to be submitted on October 1, 2005 and on or
    49  before each October first thereafter  shall  be  consolidated  with  the
    50  annual  program  report of the corporation required under the provisions
    51  of subdivision (b) of section thirty of this act, as amended.
    52    (c) Beginning April 1, 2019, the  corporation  shall  publish  on  its
    53  website  the  information contained in the annual reports required under
    54  paragraphs (a) and (b) of this subdivision in  aggregate  form  omitting
    55  borrower identifiable information.

        A. 7360                             8
     1    (21) [Evaluation.] (a) The corporation shall submit to the director of
     2  the  division  of  the  budget,  the  chairperson  of the senate finance
     3  committee, and the chairperson of the assembly ways and means  committee
     4  an  evaluation  of this program prepared by an entity independent of the
     5  corporation. Such evaluation shall be submitted by September 1, 2005 and
     6  by September first every four years thereafter.
     7    (b)  Between  evaluation due dates, the corporation shall maintain the
     8  necessary records and data required to satisfy such evaluation  require-
     9  ments  and to satisfy information requests received from the director of
    10  the budget, the chairperson of the  senate  finance  committee  and  the
    11  chairperson of the assembly ways and means committee between such evalu-
    12  ation due dates.
    13    (22)  The  corporation  shall recertify existing regional corporations
    14  or, in the event a regional corporation's certification has  been  with-
    15  drawn, seek successor corporations among eligible applicants after April
    16  first, two thousand two.
    17    §  4.  Paragraph  (f) of subdivision 2 of section 16-c of section 1 of
    18  chapter 174 of the laws of 1968, constituting the New York  state  urban
    19  development  corporation  act,  as  added  by chapter 169 of the laws of
    20  1994, is amended to read as follows:
    21    (f) The provisions of subdivisions eight, nine, and  fourteen  through
    22  nineteen  of section sixteen-a of this act pertaining to the small busi-
    23  ness regional revolving [loans] loan trust fund shall also be applicable
    24  to the minority and women revolving  loan  trust  fund,  provided  that:
    25  where the term "regional corporation" appears therein it shall be inter-
    26  preted  to  mean  an  entity selected to administer a minority and women
    27  revolving loan trust fund account, and "small business regional  revolv-
    28  ing  [loans]  loan trust fund" shall mean a minority and women revolving
    29  loan trust fund, and where the term "this section"  appears  therein  it
    30  shall mean this section sixteen-c.
    31    §  5.  Paragraph  (h) of subdivision 1 of section 16-e of section 1 of
    32  chapter 174 of the laws of 1968, constituting the New York  state  urban
    33  development  corporation  act,  as  added  by chapter 169 of the laws of
    34  1994, is amended to read as follows:
    35    (h) "Revolving loan fund account grants" shall include: (i) grants  to
    36  provide the local match for federally funded community-based loan funds;
    37  (ii)  grants  to  capitalize  and  recapitalize  small business regional
    38  revolving loan trust fund accounts pursuant to section sixteen-a of this
    39  act; and (iii) grants to recapitalize minority and women revolving  loan
    40  trust  fund  accounts  established pursuant to section sixteen-c of this
    41  act.
    42    § 6. Subdivision 13 of section 16-e of section 1 of chapter 174 of the
    43  laws of 1968, constituting the New York state urban  development  corpo-
    44  ration  act,  as added by chapter 169 of the laws of 1994, is amended to
    45  read as follows:
    46    (13) Regional loan fund account grants. Assistance from  this  program
    47  may  be  provided  for  grants of up to five hundred thousand dollars to
    48  capitalize, and up to two  hundred  thousand  dollars  to  recapitalize,
    49  small  business  regional revolving loan trust fund accounts established
    50  pursuant to section sixteen-a of this act and up to two hundred thousand
    51  dollars to recapitalize minority and women  revolving  loan  trust  fund
    52  accounts  established  pursuant to section sixteen-c of this act; and up
    53  to two hundred thousand dollars to provide the local match for appropri-
    54  ately federally-financed community-based loan funds.
    55    § 7. The opening paragraph of paragraph  (b-1)  of  subdivision  6  of
    56  section 16-l of section 1 of chapter 174 of the laws of 1968, constitut-

        A. 7360                             9
     1  ing  the  New  York state urban development corporation act, as added by
     2  chapter 603 of the laws of 2003, is amended to read as follows:
     3    The  corporation is authorized, within available appropriations in the
     4  empire state economic development fund established pursuant  to  section
     5  16-m  of this act, to provide financial assistance in the form of loans,
     6  loan guarantees, working capital loans, and interest subsidy  grants  to
     7  subsidize loans from federally chartered instrumentalities and state and
     8  private  lending institutions, including agricultural cooperative corpo-
     9  rations, provided that such assistance  to  state  lending  institutions
    10  shall  not  exceed  one-third  of the total project cost or four hundred
    11  thousand dollars, whichever is less, to agricultural enterprises seeking
    12  to implement the projects listed in this  paragraph.    Funds  for  such
    13  loans,  grants, subsidies, or any other assistance specified pursuant to
    14  this act may come from funds derived from the financial  assistance  for
    15  small and medium-sized business assistance projects established pursuant
    16  to  section  9-a of this act, the small business regional revolving loan
    17  trust fund established  pursuant  to  section  16-a  of  this  act,  the
    18  regional  economic  development partnership program established pursuant
    19  to section 16-e of this act, the empire state economic development  fund
    20  established  pursuant  to  section  16-m  of this act, or from any other
    21  funds, programs, or projects administered by the corporation or by other
    22  state appropriations.
    23    § 8. This act shall take effect immediately.
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