Bill Text: NY A10294 | 2019-2020 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Establishes a state disaster emergency loan program to be administered by industrial development agencies for small businesses and small not-for-profit corporations.
Spectrum: Partisan Bill (Democrat 18-0)
Status: (Passed) 2020-06-17 - SIGNED CHAP.109 [A10294 Detail]
Download: New_York-2019-A10294-Introduced.html
Bill Title: Establishes a state disaster emergency loan program to be administered by industrial development agencies for small businesses and small not-for-profit corporations.
Spectrum: Partisan Bill (Democrat 18-0)
Status: (Passed) 2020-06-17 - SIGNED CHAP.109 [A10294 Detail]
Download: New_York-2019-A10294-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10294 IN ASSEMBLY April 15, 2020 ___________ Introduced by M. of A. STIRPE -- read once and referred to the Committee on Corporations, Authorities and Commissions AN ACT to amend the public authorities law, in relation to establishing the industrial development agency public health state of emergency loan program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Article 9 of the public authorities law is amended by 2 adding a new title 7-A to read as follows: 3 TITLE 7-A 4 INDUSTRIAL DEVELOPMENT AGENCY PUBLIC HEALTH 5 STATE OF EMERGENCY LOAN PROGRAM 6 Section 2928. Industrial development agency public health state of 7 emergency loan program. 8 § 2928. Industrial development agency public health state of emergency 9 loan program. 1. Definitions. As used in this section, the following 10 terms shall have the following meanings: 11 (a) "Affected business or organization" means and includes both a 12 small business and a small not-for-profit organization located within 13 this state during a state of emergency; 14 (b) "Grace period" means the sixty-day period after a state of emer- 15 gency is over; 16 (c) "Industrial development agency" or "IDA" means any industrial 17 development agency established pursuant to this chapter, by special act 18 or by any other provision of law. 19 (d) "Small business" means a business with not more than fifty employ- 20 ees; 21 (e) "Small not-for-profit organization" means a not-for-profit organ- 22 ization with not more than fifty employees; and 23 (f) "State of emergency" means the period beginning with a declaration 24 by the governor that a public health state of emergency exists. 25 2. Industrial development agency public health state of emergency loan 26 program. Notwithstanding any other provision of law, any IDA may admin- 27 ister an industrial development agency public health state of emergency EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD16066-01-0A. 10294 2 1 loan program to provide loans to affected businesses and organizations 2 pursuant to this section. 3 3. Loan eligibility. An IDA may make a loan to an affected business or 4 organization, provided: 5 (a) The affected business or organization has provided to the IDA 6 proof satisfactory to such IDA that such affected business or organiza- 7 tion is an affected business or organization located within the state of 8 New York. 9 (b) The amount of the loan shall not exceed twenty-five thousand 10 dollars. 11 (c) The affected business or organization's creditworthiness shall not 12 be a factor used for the purposes of determining eligibility. 13 (d) The loan agreement shall not (i) require repayment during the 14 grace period, or (ii) charge interest on the principal amount before or 15 during the grace period or for one hundred eighty days after the grace 16 period, provided after such one hundred eighty-day period, the IDA may 17 charge interest or fees according to the terms of the loan agreement. 18 (e) The loan agreement shall require that the affected business or 19 organization repay the loan in full not later than one hundred eighty 20 days after the end of the grace period by making at least three, and no 21 more than six, equal installment payments. The loan agreement shall not 22 contain a fee or penalty for the prepayment or early payment of the 23 loan. 24 (f) The IDA shall offer credit counseling services or refer such 25 affected business or organization to nonprofit credit counselors. 26 4. Additional loans. An affected business or organization who has 27 received a loan pursuant to this section may apply to the same IDA for 28 an additional loan for each thirty-day period such small business or 29 not-for-profit organization remains an affected business or organiza- 30 tion, provided no affected business or organization may receive more 31 than three loans under the program. Each additional loan shall be made 32 in accordance with subdivision three of this section. The total amount 33 of all loans received by an affected business or organization shall not 34 exceed twenty-five thousand dollars. 35 5. Collection of loans. On and after one hundred eighty days from the 36 end of the grace period, an IDA that has made a good-faith effort to 37 collect the outstanding principal from a loan issued pursuant to this 38 section may make a claim to the comptroller for recovery of an amount 39 equal to the outstanding principal for such loan. Prior to the comp- 40 troller approving such claim, such IDA shall demonstrate to the satis- 41 faction of the comptroller that the IDA has made a good-faith effort to 42 collect the outstanding principal from the affected small business or 43 organization. Upon payment of a claim, the loan shall be assigned to the 44 state, and the comptroller shall have the right to continue collection 45 efforts on the loan. 46 6. Records. Each IDA shall maintain records in the regular course of 47 administration of the loan guarantee program, including a record of 48 loans issued and of payments made. 49 7. Taxability. Any interest deferred or not charged related to a loan 50 issued pursuant to this section shall be exempt from all state taxes 51 that may be applicable to such interest amounts as they relate to an 52 affected business or organization. Eligible IDAs shall disclose to 53 affected business or organization borrowers in loan documents that there 54 may be federal tax consequences to the program loans. 55 8. End of state of emergency. No new loan applications shall be 56 submitted under the program after the state of emergency ends. TheA. 10294 3 1 program shall expire upon the repayment of all loans made under the 2 program and, for all loans in default, the repayment of claims made 3 under the program. 4 § 2. This act shall take effect immediately.
