Bill Text: NY S00571 | 2021-2022 | General Assembly | Introduced
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 6-0)
Status: (Passed) 2022-10-06 - APPROVAL MEMO.19 [S00571 Detail]
Download: New_York-2021-S00571-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 571 2021-2022 Regular Sessions IN SENATE (Prefiled) January 6, 2021 ___________ Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions 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] 20 (viii) notwithstanding any provision of law to the contrary, establish 21 a minority- and women-owned business investment fund to provide critical EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04791-01-1S. 571 2 1 financial support to foster the development of new and emerging ideas 2 and products of minority- and women-owned business enterprises as well 3 as to promote the long-term financial performance and success of early 4 stage enterprises that are minority- and women-owned start-ups. The 5 selection of an eligible applicant and beneficiary companies for the 6 minority- and women-owned business investment fund shall be selected by 7 the process established pursuant to subdivisions two through four of 8 section sixteen-u of this act. Minority- or women-owned business enter- 9 prises who participate in such minority- and women-owned business 10 investment fund under this subdivision shall not be precluded from qual- 11 ifying for any other assistance, grant or loan made available from the 12 state[.]; and 13 (ix) provide for the refinancing of debt or equity invested in an 14 enterprise or project, provided that the chairperson of the corporation 15 determines the terms of the original debt to be unreasonable. The appli- 16 cant must submit a written justification to the chairperson of the 17 corporation for each loan explaining why the current loan is not on 18 reasonable terms. Unreasonable terms of debt may include but are not 19 limited to: 20 (1) a demand or balloon maturity feature in the existing note; 21 (2) the current maturity is not appropriate for the original purpose 22 of the loan; 23 (3) the existing debt being refinanced is on a revolving line or a 24 credit card; 25 (4) the interest rate is deemed unreasonable by the corporation; or 26 (5) the loan is over-collateralized. 27 § 3. This act shall take effect on the ninetieth day after it shall 28 have become a law. Effective immediately, the addition, amendment and/or 29 repeal of any rule or regulation necessary for the implementation of 30 this act on its effective date are authorized to be made and completed 31 on or before such effective date.
