Bill Text: NY A08802 | 2019-2020 | General Assembly | Introduced

Bill Title: Provides zero and low interest loans or loan interest rate reduction for energy improvement projects to stimulate the growth and development of small businesses and jobs.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2020-01-08 - referred to small business [A08802 Detail]

Download: New_York-2019-A08802-Introduced.html

                STATE OF NEW YORK


                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                    November 25, 2019

        Introduced by M. of A. THIELE -- 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 creating the small business energy loan program

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

     1    Section 1. The legislature hereby finds and declares that the  state's
     2  chronically  high  energy  costs are often cited as a key factor for why
     3  New York-based businesses and New York-made products are not competitive
     4  in national and global markets. The legislature further finds  that  the
     5  state's  economic  expansion  is  tied  to the growth and development of
     6  small businesses. By reducing a primary  cost  component  in  a  rapidly
     7  growing  sector  of  the  state's economy, those businesses are rendered
     8  more competitive, and thus help to better secure New York-based jobs. In
     9  addition, thriving businesses and communities will augment the tax base,
    10  which in distressed communities  is  disproportionately  lower  than  in
    11  other areas of the state.
    12    Therefore, the legislature seeks to provide funds to reduce high ener-
    13  gy  costs,  via  a  zero  or  low  interest  loan, or loan interest rate
    14  reduction program for energy efficiency projects to stimulate the growth
    15  and development of small businesses and jobs in New York state.
    16    § 2. Section 1 of chapter 174 of the laws of  1968,  constituting  the
    17  New York state urban development corporation act, is amended by adding a
    18  new section 16-bb to read as follows:
    19    §  16-bb.  Small business energy loan program. 1. Definitions. For the
    20  purpose of this section:
    21    (a) "Authority" shall mean the New  York  state  energy  research  and
    22  development  authority as defined in section 1851 of the public authori-
    23  ties law.
    24    (b) "Economically distressed areas" shall mean areas as determined  by
    25  the  corporation,  meeting  criteria  indicative  of  economic distress,

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 8802                             2

     1  including consideration of unemployment rate; rate of employment change;
     2  numbers and percentages of low-income persons; per capita income and per
     3  capita real property wealth; such other indicators of  distress  as  the
     4  corporation  shall  determine. Economically distressed areas may include
     5  designations such as cities, municipalities, block numbering  areas  and
     6  census tracts.
     7    (c)  "Loan fund" shall mean the small business energy loan fund estab-
     8  lished pursuant to this section.
     9    (d) "Small businesses" shall mean businesses which meet the  following
    10  criteria:  (i)  independently  owned  and  operated, and not dominant in
    11  their field, (ii) headquartered in the state,  with  principal  business
    12  operations  located  in the state, and (iii) employs one hundred or less
    13  persons.
    14    2. (a) The corporation, with the assistance of  the  authority,  shall
    15  establish  a  small  business  energy  loan  fund to provide zero or low
    16  interest loans and loan interest rate reductions to small businesses  in
    17  economically   distressed  areas  for  energy  efficiency  projects  and
    18  advanced energy technologies.
    19    (b) In order to be eligible to participate in this loan program, small
    20  businesses in economically distressed areas must have  an  energy  audit
    21  provided  through  the authority's energy audit program that helps small
    22  businesses make informed electrical energy decisions and implement ener-
    23  gy efficiency strategies. Technologies identified in  such  audit  shall
    24  become  eligible  technologies for which monies for the loan fund may be
    25  available.
    26    3. (a) The corporation shall, within available appropriations, provide
    27  financial assistance from the loan fund to eligible small businesses  in
    28  economically distressed areas.
    29    (b)  The  corporation  is  authorized  to provide zero or low interest
    30  loans from the loan fund for eligible improvements. To be  eligible  for
    31  such  loans,  a  small business in an economically distressed area shall
    32  identify an eligible improvement project and provide necessary  documen-
    33  tation.
    34    (c)  (i)  The  corporation is authorized to provide loan interest rate
    35  reductions from the loan fund for eligible improvements. To be  eligible
    36  for  an  interest  rate  reduction,  a small business in an economically
    37  distressed area shall:  (1) identify an eligible improvement project and
    38  provide necessary documentation, and (2) receive a loan commitment  from
    39  a participating lender, including banks, credit unions, community devel-
    40  opment financial institutions, and farm credit associations.
    41    (ii) The corporation is authorized to buy down the participating lend-
    42  er's  interest  rate  by up to four hundred basis points or four percent
    43  through the loan fund. Such interest rate reductions shall be  available
    44  for the lesser of ten years or the life of the loan.
    45    (d)  Loans  provided  by  the corporation or issued by a participating
    46  lender shall not exceed one hundred thousand dollars.
    47    4. Energy efficiency improvements eligible for zero  or  low  interest
    48  loans  or  loan  interest  rate  reductions  through the loan fund shall
    49  include, but not be limited to:
    50    (a) Pre-qualified measures that are proven cost effective  investments
    51  which reduce energy use;
    52    (b)  Custom  measures  that  pay  for  themselves in ten years through
    53  reduced energy use;
    54    (c) Process improvement measures that reduce manufacturing energy  use
    55  on a cost-per-unit basis; and

        A. 8802                             3

     1    (d)  Renewable technologies that use the sun, wind, water or ground to
     2  generate heat or power.
     3    5.  Applications  for  assistance  pursuant  to  this section shall be
     4  reviewed and evaluated  by  the  corporation  in  cooperation  with  the
     5  authority pursuant to eligibility requirements and criteria set forth in
     6  the rules and regulations promulgated by the corporation.
     7    6.  The  corporation  and the authority shall submit an annual written
     8  report to the speaker of the assembly and the temporary president of the
     9  senate identifying the number of businesses assisted  through  the  loan
    10  fund  program, and the types of improvements implemented and energy cost
    11  savings realized by the small businesses assisted by this program.
    12    § 3. Paragraph (m) of subdivision 1 of section 16-m of  section  1  of
    13  chapter  174  of the laws of 1968, constituting the New York state urban
    14  development corporation act, as added by chapter  467  of  the  laws  of
    15  2011, is amended and a new paragraph (o) is added to read as follows:
    16    (m)  Assistance  to businesses that conduct basic, applied or transla-
    17  tional research that leads to the development of products  that  improve
    18  human  health  or  agriculture  and that require approval by the federal
    19  food and drug administration, in order to create or  expand  facilities,
    20  in  accordance  with  good manufacturing practice regulations, that will
    21  create or retain more than fifty jobs. For purposes of  this  paragraph,
    22  good  manufacturing  practice  regulations  refers  to those regulations
    23  promulgated by the United States Food and Drug Administration under  the
    24  authority of the Federal Food, Drug and Cosmetic Act[.];
    25    (o)  Loans, loan guarantees, interest subsidy grants and direct grants
    26  to small businesses under section sixteen-bb  of  this  act  for  energy
    27  efficiency projects and advanced energy technologies.
    28    §  4.  This act shall take effect immediately, provided, however, that
    29  the amendments to section 16-m of the New York state  urban  development
    30  corporation  act  made by section three of this act shall not affect the
    31  expiration of such section and shall expire and be deemed repealed ther-
    32  ewith.