Bill Text: NY S00844 | 2019-2020 | General Assembly | Amended


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

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-04-15 - PRINT NUMBER 844A [S00844 Detail]

Download: New_York-2019-S00844-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         844--A
                               2019-2020 Regular Sessions
                    IN SENATE
                                     January 9, 2019
                                       ___________
        Introduced  by Sen. BENJAMIN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and   Commissions  --  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 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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06075-03-9

        S. 844--A                           2
     1  regional corporation or decertify such regional corporation and competi-
     2  tively  select  a successor corporation to administer the small business
     3  regional revolving loan fund.  In the case of regions that do not have a
     4  regional  corporation  administering a small business regional revolving
     5  loan fund or that have a decertified  regional  corporation,  the  urban
     6  development corporation shall issue a request for proposals, pursuant to
     7  the  provisions  of  section  16-a of section 1 of the urban development
     8  corporation act, to administer small business  regional  revolving  loan
     9  funds. The corporation shall select from the proposals received the most
    10  qualified  applicant  in  each region pursuant to subdivisions (4), (5),
    11  and (6) of such section 16-a. If there is no applicant or  no  qualified
    12  applicant in a region of the state, that region shall not participate in
    13  the  small  business  regional  revolving  loan fund program. The corpo-
    14  ration, from money available for this purpose, shall allocate  funds  to
    15  each  regional  corporation  pursuant  to  subdivision 1 of such section
    16  16-a.
    17    § 3. Section 16-a of section 1 of chapter 174 of  the  laws  of  1968,
    18  constituting  the  New  York state urban development corporation act, as
    19  amended by chapter 477 of the laws of 2002, subdivision 3-a as added  by
    20  chapter  474  of  the laws of 2017, subdivision 20 as amended by chapter
    21  378 of the laws of 2018 and subdivision 21 as amended by chapter 524  of
    22  the laws of 2005, is amended to read as follows:
    23    § 16-a. [Regional] Small business regional revolving loan program. (1)
    24  The  corporation  shall establish a fund to be known as the "small busi-
    25  ness regional revolving loan trust fund" and shall pay  into  such  fund
    26  any  monies  made  available  to  the corporation for such fund from any
    27  source. The monies held in or credited to the  fund  shall  be  expended
    28  solely for the purposes set forth in this section. The corporation shall
    29  not  commingle  the  monies  of  such  fund with any other monies of the
    30  corporation or any monies held in trust by the corporation.
    31    (2) The corporation shall allocate any monies made available for  such
    32  fund  for  the  purpose  of  making grants to regional corporations. The
    33  grants shall be allocated as follows:
    34    (a) fifty percent divided equally among the regions;
    35    (b) fifty percent according to a formula weighted in  favor  of  those
    36  regions  with  the greatest levels of economic distress as determined by
    37  poverty rates, number of persons receiving public assistance,  unemploy-
    38  ment  rates,  rate  of  employment  decline and such other indicators of
    39  economic distress as the corporation deems appropriate; and
    40    (c) in the event a regional corporation advises the  corporation  that
    41  it  does  not  require  all  or a portion of the funds to be distributed
    42  pursuant to this subdivision, such funds shall be re-distributed by  the
    43  corporation equally among the other regional corporations.
    44    (3)  In  accordance with the rules and regulations of the corporation,
    45  each regional corporation  shall  establish  two  special  accounts  for
    46  monies  received  by the regional corporation pursuant to the provisions
    47  of this section. The grant monies received from the  corporation,  earn-
    48  ings  on such monies, and any principal repayments shall be deposited in
    49  a loan fund account; any interest earned by the regional corporation  on
    50  loans  will  be  deposited  in  a separate interest repayment account. A
    51  regional corporation shall be authorized to provide financing assistance
    52  to eligible projects. Any interest earned from its loans may be used  by
    53  a  regional  corporation  for  the  cost  of  administering the programs
    54  authorized by this section.
    55    (3-a) Notwithstanding subdivision three of this section, where  appli-
    56  cable,  the corporation is authorized to enter into agreements as may be

        S. 844--A                           3
     1  necessary  for  the  administration  and  reporting  of  funds   repaid,
     2  received,  expended  or  collected  in  a  manner  consistent  with  the
     3  provisions in section sixteen-t of this act. The use of  such  funds  by
     4  the  corporation  shall  be  consistent  with  the terms, conditions and
     5  restrictions set forth in subdivision four of this section,  to  provide
     6  financial  assistance  to  eligible  regional corporations as defined in
     7  subdivision eighteen of section three of this act. Outstanding expenses,
     8  loans and other obligations executed prior to the effective date of this
     9  subdivision shall be subject to the terms and conditions of the original
    10  contract or contracts.
    11    (4) Regional corporations shall be selected by  the  corporation  from
    12  among  eligible  applicants  to  administer  a  small  business regional
    13  revolving loan program. An eligible applicant shall:
    14    (a) represent at least two entire contiguous counties;
    15    (b) have available to it staff with sufficient  expertise  to  analyze
    16  applications  for  financial  assistance, to regularly monitor financial
    17  assistance to clients, and have made arrangements to provide  management
    18  or technical assistance to clients;
    19    (c)  have an effective plan to market its services to small businesses
    20  through such entities as chambers of commerce,  industry  trade  associ-
    21  ations, banks, local development corporations, community based organiza-
    22  tions and industrial development agencies; and
    23    (d) have established a loan committee composed of five or more persons
    24  experienced  in  commercial  lending or in the operation of a for-profit
    25  business and a staff person of the regional office of the department  of
    26  economic development. Such loan committee shall review every application
    27  to  the  regional  corporation for financial assistance pursuant to this
    28  section, shall determine the feasibility of the transaction proposed  in
    29  the  application  and shall recommend to the board of directors or other
    30  governing body of the regional corporation such action as the  committee
    31  deems appropriate.
    32    (5)  Applications  to  the  corporation for certification or recertif-
    33  ication as a regional corporation shall:
    34    (a) describe the applicant corporation,  including  its  organization,
    35  membership, loan committee, staff, and sources of other funds, if any;
    36    (b) identify the geographic region to be served;
    37    (c)  explain  the methods and criteria to be used in determining firms
    38  eligible for financial  assistance  from  the  small  business  regional
    39  revolving loan program;
    40    (d) describe the means for coordinating financial assistance available
    41  from  the  small business regional revolving loan program with financial
    42  assistance available from other public funding sources within the region
    43  and how such program will be used  to  leverage  private  financing  for
    44  projects;
    45    [(e)  at any time, the corporation may consider proposals to reconfig-
    46  ure geographic areas served by regional corporations;] and
    47    [(f)] (e) contain such other  information  as  the  corporation  deems
    48  appropriate.
    49    (6)  The  corporation  shall  select,  from among eligible applicants,
    50  regional corporations to administer  revolving  loan  programs,  on  the
    51  basis of:
    52    (a)  the  ability of the regional corporation to administer the finan-
    53  cial assistance programs authorized under this section;
    54    (b) the extent of coordination with other publicly supported financial
    55  assistance programs available  within  the  region  represented  by  the
    56  regional corporation;

        S. 844--A                           4
     1    (c) the degree of public and private support within the region for the
     2  applicant regional corporation; and
     3    (d)  the  ability of the regional corporation to provide financial and
     4  other assistance to businesses located in distressed  areas  within  the
     5  region.
     6    (6-a)  The  corporation  shall,  every five years, recertify that each
     7  regional corporation has complied with the terms and conditions of  this
     8  section.  In the event a regional corporation is not recertified, or its
     9  certification is withdrawn pursuant  to  subdivision  nineteen  of  this
    10  section, then the corporation shall give written notice to such regional
    11  corporation  which shall thereafter neither make new loans nor undertake
    12  new obligations except upon written approval  of  the  corporation.  The
    13  corporation  may  thereafter certify another regional corporation in the
    14  manner provided in this section for the  selection  of  regional  corpo-
    15  rations. Upon the certification of a successor regional corporation, all
    16  remaining  loan  funds, records and accounts of the regional corporation
    17  not recertified shall be transferred to the corporation and the regional
    18  corporation not recertified shall cease to  function  pursuant  to  this
    19  section.  The  corporation  shall transfer returned funds to a successor
    20  regional corporation, or in the event no successor regional  corporation
    21  is formed, equally to other existing regional corporations.
    22    (7)  A regional corporation certified by the corporation shall use the
    23  funds received from the corporation, subject to  the  terms,  conditions
    24  and restrictions set forth in this section, to provide financial assist-
    25  ance  to  eligible  businesses  as  defined  in subdivision seventeen of
    26  section three of this act, for projects that demonstrate  a  substantial
    27  likelihood of providing increases in net new permanent jobs or retaining
    28  jobs in businesses that need such financial assistance to remain viable.
    29  The regional corporation certified by the corporation shall also use the
    30  funds  received  from the corporation, subject to the terms, conditions,
    31  and restrictions set forth in this section, to provide financial assist-
    32  ance to micro-enterprises, defined as any commercial business with  five
    33  or fewer employees, one or more of whom is the owner.
    34    (8)  The  decision  to  approve or reject an application for financial
    35  assistance pursuant to the provisions of this section shall be made by a
    36  majority of the directors of the regional corporation, and such decision
    37  shall be final. No member of the board or  other  governing  body  of  a
    38  regional corporation shall participate in a decision on a project appli-
    39  cation  when  such  member  is a party to or has a financial interest in
    40  such project. Any member who cannot  participate  in  a  decision  on  a
    41  project  application for such reason shall not be counted as a member of
    42  the board or other governing body for purposes of determining the number
    43  of members required for a majority vote on such application.
    44    (9) No employee or officer of any  regional  corporation  shall  be  a
    45  party  to  or  have  any financial interest in any project that receives
    46  financial assistance pursuant to this section.
    47    (10) A regional corporation, in approving applications  for  financial
    48  assistance, shall give priority to projects:
    49    (a) that will provide increases in net new permanent jobs;
    50    (b)  located in economically distressed areas as defined by the corpo-
    51  ration or employing persons who live in such areas;
    52    (c) of minority or women-owned enterprises  or  enterprises  owned  by
    53  dislocated  workers, such workers as defined in the Workforce Investment
    54  Act (P.L. 105-220); and
    55    (d) of businesses in the early stages of development  that  have  been
    56  denied access to credit.

        S. 844--A                           5
     1    (11) The funds allocated to each regional corporation pursuant to this
     2  section may be used to guarantee the repayment of a working capital loan
     3  provided  by  a  banking  organization  to  finance an eligible project.
     4  Guarantees may be provided for up to  ninety  percent  of  the  required
     5  total project financing, provided that no more than one hundred thousand
     6  dollars  may  be  guaranteed for any project. Guarantees may be made for
     7  the following types of financing: short and medium term loans for  work-
     8  ing  capital,  revolving  lines  of  credit,  and seasonal inventory and
     9  accounts receivable loans. Guarantees may  be  made  for  up  to  ninety
    10  percent  of  the required total financing up to a maximum of one hundred
    11  fifty thousand dollars for interim financing  where  another  lender  or
    12  guarantor  will  provide  permanent  financing within one hundred eighty
    13  days. In no event may a loan guarantee be for a term  longer  than  five
    14  years. Any loan made by a banking organization that is guaranteed pursu-
    15  ant  to this subdivision shall be secured by a security agreement, chat-
    16  tel paper, loan agreement, or such other instruments or documents deemed
    17  necessary or convenient by the regional corporation to secure the  loan.
    18  Any  guarantee  made  pursuant  to this subdivision shall be backed by a
    19  minimum reserve within the account established by each  regional  corpo-
    20  ration  of at least twenty-five percent of the amount guaranteed that is
    21  outstanding.
    22    (11-a) A regional corporation,  in  addition  to  receiving  funds  as
    23  provided  in  this section, may also apply for and accept funds from any
    24  other source for the purpose of furthering  its  goals  and  objectives.
    25  Such  funds  may  be  used in the same manner as funds received from the
    26  corporation to carry out the purposes of this section.
    27    (12) The funds of each regional corporation derived pursuant  to  this
    28  section  may  be  used to provide loans for working capital for eligible
    29  projects; provided that the amount of the loan does  not  exceed  ninety
    30  percent  of  the  total  project  cost, or one hundred thousand dollars,
    31  whichever is less. The interest rate and the terms [on]  of  such  loans
    32  shall  be  determined by the regional corporation, but in no event shall
    33  the interest rate be less than [five percent] the federal discount rate.
    34  The term of any loan shall not exceed five years.  All  loans  shall  be
    35  secured by lien positions on collateral at the highest level of priority
    36  that can accommodate the borrower's ability to raise sufficient debt and
    37  equity capital for the project.
    38    (13) A regional corporation shall not provide any financial assistance
    39  authorized by this section unless the following conditions are met:
    40    (a)  the  applicant  has demonstrated that there is little prospect of
    41  obtaining the project financing requested from other public  sources  of
    42  funding  within  the  region,  including local revolving loan funds, and
    43  that there is little prospect of obtaining  adequate  project  financing
    44  from  private  sources  of  capital, or in the case of a loan guarantee,
    45  that there is little prospect of obtaining project financing without the
    46  guarantee; except that in the case of local revolving loan funds, finan-
    47  cial assistance from the small business  regional  revolving  loan  fund
    48  account  may  be  provided  for  a project in conjunction with financial
    49  assistance from a local revolving loan fund,  provided  that  assistance
    50  from  the small business regional revolving loan fund is no greater than
    51  that provided by the local revolving loan fund, and that a project qual-
    52  ifying for financial assistance available from a  local  revolving  loan
    53  fund is not denied such assistance;
    54    (b)  the  applicant  has  a  minimum  equity  interest of at least ten
    55  percent in the business or project;
    56    (c) there is a reasonable prospect of repayment;

        S. 844--A                           6
     1    (d) the project is located in the region represented by  the  regional
     2  corporation;
     3    (e) the project will comply with any applicable environmental rules or
     4  regulations;
     5    (f)  the applicant has certified that it will not discriminate against
     6  any employee or any applicant for employment because of race,  religion,
     7  color, national origin, sex, or age;
     8    (g)  a  staff  member  or a representative of the regional corporation
     9  acting in an official capacity has personally visited the  project  site
    10  and/or the applicant's place of business; and
    11    (h)  financial  commitments  for  the  project have been obtained from
    12  other public and private sources.
    13    (14) Grants made by the corporation pursuant to this section shall not
    14  be made available for:
    15    (a) projects that would result in the relocation of any business oper-
    16  ation from one municipality within the state to  another,  except  under
    17  one  of  the  following  conditions:   (i) when a business is relocating
    18  within a municipality with a population of at least  one  million  where
    19  the  governing  body  of  such municipality approves such relocation; or
    20  (ii) the regional corporation notifies each municipality from which such
    21  business operation will be relocated and  each  municipality  agrees  to
    22  such relocation;
    23    (b)  projects of newspapers, broadcasting or other news media; medical
    24  facilities, libraries, community or civic centers; or public infrastruc-
    25  ture improvements;
    26    (c) refinancing any portion of the total project cost or other  exist-
    27  ing  loans  or  debts  of an applicant, except for the purpose of trans-
    28  ferring to the employees or to other  local  interests  ownership  of  a
    29  company  that  would  otherwise  depart  from  or cease or substantially
    30  reduce operations in the state  and  except  when  such  refinancing  is
    31  required  to  enable  a  viable business to maintain or expand its oper-
    32  ations in the state;
    33    (d) providing funds, directly or  indirectly,  for  payment,  distrib-
    34  ution,  or  as a loan, to owners, partners or shareholders of the appli-
    35  cant enterprise, except as ordinary income for services rendered; and
    36    (e) retail projects, except where the regional corporation finds there
    37  will be an increase in net new permanent jobs.
    38    (15) A regional corporation may  charge  application,  commitment  and
    39  loan  guarantee  fees  pursuant  to  a  schedule  of fees adopted by the
    40  regional corporation and approved by the corporation.
    41    (16) The regional corporations shall submit  annual  reports  for  the
    42  previous fiscal year to the corporation describing the financial assist-
    43  ance  provided  pursuant  to  this  section,  including:  the  number of
    44  projects assisted;  the  amount  and  type  of  assistance  provided;  a
    45  description of the projects; the number of jobs created or retained; the
    46  status  of outstanding loans, guarantees, earnings and account balances;
    47  and such other information as the corporation may require.
    48    (17) The corporation shall, assisted by the commissioner  of  economic
    49  development and in consultation with the department of economic develop-
    50  ment,  promulgate  rules  and  regulations  in accordance with the state
    51  administrative procedure act setting forth procedures to be followed by,
    52  and the responsibilities and obligations of, regional  corporations  and
    53  the corporation. Such rules and regulations shall be consistent with the
    54  program  plan required by subdivision nineteen of section one hundred of
    55  the economic development law.

        S. 844--A                           7
     1    (18) For any positions opened as a result of  assistance  provided  in
     2  this  section, businesses so assisted shall first consider unemployed or
     3  low income  individuals  eligible  to  participate  in  programs  funded
     4  through  the  Workforce  Investment  Act  (P.L.  105-220)  who  shall be
     5  referred  to  the  business by local workforce investment boards created
     6  pursuant to such act or by the job service division of the department of
     7  labor.
     8    (19) The corporation shall annually conduct an audit of each  regional
     9  corporation  to  ensure  conformity  of  all aspects of program adminis-
    10  tration and of financial assistance transactions  with  the  substantive
    11  and  procedural provisions of this section. In the event that the corpo-
    12  ration finds instances of substantive noncompliance by a regional corpo-
    13  ration with any of the provisions of this  section  and  such  instances
    14  were,  or  should  have been, known to be in noncompliance, the regional
    15  corporation shall return, within thirty days, upon demand by the  corpo-
    16  ration, all uncommitted grant funds on hand and provide an accounting of
    17  the loans currently outstanding.
    18    The corporation may withdraw a regional corporation's certification:
    19    (a)  when a member of a board of directors or other governing body, an
    20  officer or an employee of said regional corporation is party to  or  has
    21  financial interests in loan projects;
    22    (b)  when  said regional corporation fails to comply with the require-
    23  ments for project loans pursuant to this section; or
    24    (c) when a regional corporation makes no  loans  within  the  previous
    25  fiscal  year and there is more than one hundred thousand dollars remain-
    26  ing in its loan fund account.
    27    The corporation shall  transfer  funds  returned  from  a  decertified
    28  regional  corporation  to a successor regional corporation, or, if there
    29  be none, distribute such funds equally  among  other  existing  regional
    30  corporations.  Outstanding loans and other obligations payable to such a
    31  decertified regional corporation shall  be  assigned  to  its  successor
    32  regional  corporation,  or  to the corporation or an agent designated by
    33  the corporation upon such terms and conditions as the corporation  shall
    34  determine.
    35    (20)  [Reporting.]  (a)  The  lending organization shall submit to the
    36  corporation annual reports stating: the number of  program  loans  made;
    37  the  amount  of program funding used for loans; the use of loan proceeds
    38  by the borrower; the number of jobs created or retained; the  status  of
    39  each  outstanding  program  loan, including fund balance; and such other
    40  information as the corporation may require.
    41    (b) The corporation shall, on or before October  1,  1988  and  on  or
    42  before  each  October  first thereafter, submit a report to the governor
    43  and the legislature on the operations and accomplishments of  the  small
    44  business  regional  revolving  loan program. Such report shall include a
    45  summary of the information contained in the reports  submitted  pursuant
    46  to  subdivision sixteen of this section and of the results of the audits
    47  performed by the corporation pursuant to subdivision  nineteen  of  this
    48  section,  and  shall set forth the status of the small business regional
    49  revolving loan program for the previous fiscal year, including grants to
    50  the regional corporations, earnings and account balances as reported  to
    51  the corporation. The report to be submitted on October 1, 2005 and on or
    52  before  each  October  first  thereafter  shall be consolidated with the
    53  annual program report of the corporation required under  the  provisions
    54  of subdivision (b) of section thirty of this act, as amended.
    55    (c)  Beginning  April  1,  2019,  the corporation shall publish on its
    56  website the information contained in the annual reports  required  under

        S. 844--A                           8
     1  paragraphs  (a)  and  (b) of this subdivision in aggregate form omitting
     2  borrower identifiable information.
     3    (21) [Evaluation.] (a) The corporation shall submit to the director of
     4  the  division  of  the  budget,  the  chairperson  of the senate finance
     5  committee, and the chairperson of the assembly ways and means  committee
     6  an  evaluation  of this program prepared by an entity independent of the
     7  corporation. Such evaluation shall be submitted by September 1, 2005 and
     8  by September first every four years thereafter.
     9    (b) Between evaluation due dates, the corporation shall  maintain  the
    10  necessary  records and data required to satisfy such evaluation require-
    11  ments and to satisfy information requests received from the director  of
    12  the  budget,  the  chairperson  of  the senate finance committee and the
    13  chairperson of the assembly ways and means committee between such evalu-
    14  ation due dates.
    15    (22) The corporation shall recertify  existing  regional  corporations
    16  or,  in  the event a regional corporation's certification has been with-
    17  drawn, seek successor corporations among eligible applicants after April
    18  first, two thousand two.
    19    § 4. Paragraph (f) of subdivision 2 of section 16-c of  section  1  of
    20  chapter  174  of the laws of 1968, constituting the New York state urban
    21  development corporation act, as added by chapter  169  of  the  laws  of
    22  1994, is amended to read as follows:
    23    (f)  The  provisions of subdivisions eight, nine, and fourteen through
    24  nineteen of section sixteen-a of this act pertaining to the small  busi-
    25  ness regional revolving [loans] loan trust fund shall also be applicable
    26  to  the  minority  and  women  revolving loan trust fund, provided that:
    27  where the term "regional corporation" appears therein it shall be inter-
    28  preted to mean an entity selected to administer  a  minority  and  women
    29  revolving  loan trust fund account, and "small business regional revolv-
    30  ing [loans] loan trust fund" shall mean a minority and  women  revolving
    31  loan  trust  fund,  and where the term "this section" appears therein it
    32  shall mean this section sixteen-c.
    33    § 5. Paragraph (h) of subdivision 1 of section 16-e of  section  1  of
    34  chapter  174  of the laws of 1968, constituting the New York state urban
    35  development corporation act, as added by chapter  169  of  the  laws  of
    36  1994, is amended to read as follows:
    37    (h)  "Revolving loan fund account grants" shall include: (i) grants to
    38  provide the local match for federally funded community-based loan funds;
    39  (ii) grants to  capitalize  and  recapitalize  small  business  regional
    40  revolving loan trust fund accounts pursuant to section sixteen-a of this
    41  act;  and (iii) grants to recapitalize minority and women revolving loan
    42  trust fund accounts established pursuant to section  sixteen-c  of  this
    43  act.
    44    § 6. Subdivision 13 of section 16-e of section 1 of chapter 174 of the
    45  laws  of  1968, constituting the New York state urban development corpo-
    46  ration act, as added by chapter 169 of the laws of 1994, is  amended  to
    47  read as follows:
    48    (13)  Regional  loan fund account grants. Assistance from this program
    49  may be provided for grants of up to five  hundred  thousand  dollars  to
    50  capitalize,  and  up  to  two  hundred thousand dollars to recapitalize,
    51  small business regional revolving loan trust fund  accounts  established
    52  pursuant to section sixteen-a of this act and up to two hundred thousand
    53  dollars  to  recapitalize  minority  and women revolving loan trust fund
    54  accounts established pursuant to section sixteen-c of this act;  and  up
    55  to two hundred thousand dollars to provide the local match for appropri-
    56  ately federally-financed community-based loan funds.

        S. 844--A                           9
     1    §  7.  The  opening  paragraph  of paragraph (b-1) of subdivision 6 of
     2  section 16-l of section 1 of chapter 174 of the laws of 1968, constitut-
     3  ing the New York state urban development corporation act,  as  added  by
     4  chapter 603 of the laws of 2003, is amended to read as follows:
     5    The  corporation is authorized, within available appropriations in the
     6  empire state economic development fund established pursuant  to  section
     7  16-m  of this act, to provide financial assistance in the form of loans,
     8  loan guarantees, working capital loans, and interest subsidy  grants  to
     9  subsidize loans from federally chartered instrumentalities and state and
    10  private  lending institutions, including agricultural cooperative corpo-
    11  rations, provided that such assistance  to  state  lending  institutions
    12  shall  not  exceed  one-third  of the total project cost or four hundred
    13  thousand dollars, whichever is less, to agricultural enterprises seeking
    14  to implement the projects listed in this  paragraph.    Funds  for  such
    15  loans,  grants, subsidies, or any other assistance specified pursuant to
    16  this act may come from funds derived from the financial  assistance  for
    17  small and medium-sized business assistance projects established pursuant
    18  to  section  9-a of this act, the small business regional revolving loan
    19  trust fund established  pursuant  to  section  16-a  of  this  act,  the
    20  regional  economic  development partnership program established pursuant
    21  to section 16-e of this act, the empire state economic development  fund
    22  established  pursuant  to  section  16-m  of this act, or from any other
    23  funds, programs, or projects administered by the corporation or by other
    24  state appropriations.
    25    § 8. This act shall take effect immediately.
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