Bill Text: NY S01690 | 2023-2024 | General Assembly | Amended
Bill Title: Relates to the capital access program; focuses on minority and women-owned business enterprises and small businesses located in highly distressed areas to assist them in processing and being approved for qualifying program loans; requires the engagement in outreach and marketing to financial institutions to increase awareness of the program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2023-12-08 - APPROVAL MEMO.45 [S01690 Detail]
Download: New_York-2023-S01690-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 1690--A 2023-2024 Regular Sessions IN SENATE January 13, 2023 ___________ Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Banks -- reported favora- bly from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the banking law and the New York state urban development corporation act, in relation to the capital access program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (b) of subdivision 1 of section 212 of the bank- 2 ing law, as amended by chapter 1 of the laws of 1994, is amended to read 3 as follows: 4 (b) The corporation shall undertake the following programs in further- 5 ance of the above objectives: (i) establish regional offices at 6 locations throughout New York, with sufficient staffing to advise, 7 develop and package financial assistance for small and medium sized 8 businesses; (ii) develop a comprehensive outreach program to increase 9 the visibility and awareness of the corporation's programs, including 10 allocating budget and staff to establish and maintain an aggressive and 11 extensive marketing program of the corporation's program of assistance 12 to small and medium sized businesses, providing for specific outreach to 13 minority and women owned enterprises, and entering into cooperative 14 relationships with local chambers of commerce, local development agen- 15 cies, local development corporations and other community based financial 16 intermediaries as set forth in subdivision three of this section; (iii) 17 establish and operate, or affiliate with a small business investment 18 company and a specialized small business investment company; [and] (iv) 19 establish a pilot export financing program, using personnel from the 20 private sector, to evaluate whether the corporation can play a signif- 21 icant role in the growth of the export industry in the state and (v) 22 establish a program in cooperation with the empire state development EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05985-02-3S. 1690--A 2 1 corporation that shall focus on small businesses located in highly 2 distressed areas and minority and women-owned business enterprises 3 (MWBEs) as such designations are defined by the regulations of the New 4 York state urban development corporation act, through which the corpo- 5 ration shall be authorized to: (A) act as third-party agent for the 6 capital access program established by section sixteen-k of section one 7 of chapter one hundred seventy-four of the laws of nineteen hundred 8 sixty-eight, constituting the urban development corporation act; (B) 9 process, fund and approve qualifying program loans made by the corpo- 10 ration or a participating financial institution pursuant to section 11 sixteen-k of section one of chapter one hundred seventy-four of the laws 12 of nineteen hundred sixty-eight, constituting the urban development 13 corporation act; (C) maintain and service a portfolio of qualifying 14 loans made pursuant to the capital access program; and (D) engage in 15 outreach and marketing to financial institutions to increase awareness 16 of the program established under this subparagraph. The corporation 17 shall undertake the programs enumerated herein at such times as its 18 board of directors determines that the corporation's capital base and 19 available funds are adequate to support the operation of such program. 20 The programs enumerated herein may be modified by the corporation as may 21 be necessary to meet the changing needs of the state's economy, as 22 determined by the board of directors. 23 § 2. Paragraph (b) of subdivision 3 of section 16-k of section 1 of 24 chapter 174 of the laws of 1968, constituting the New York state urban 25 development corporation act, as amended by chapter 103 of the laws of 26 2011, is amended to read as follows: 27 (b) Any contract entered into pursuant to subparagraph (i) of para- 28 graph (a) of this subdivision shall: 29 (i) be for a period of two years and shall be renewed for an addi- 30 tional two year period subject to requirements of subparagraph (ii) of 31 paragraph (a) of this subdivision; [and] 32 (ii) provide for compensation for expenses incurred by the third party 33 agent in connection with its services as agent and for such other 34 services as the corporation may deem appropriate including, but not 35 limited to the use of the premises, personnel and personal property of 36 the third party agent; 37 (iii) notwithstanding any law, rule or regulation to the contrary, use 38 the underwriting standards provided for in subdivision four of this 39 section to evaluate applications for loans pursuant to the program filed 40 by a minority and women-owned business enterprise, or a small business 41 whose principal place of business is in a highly distressed area; 42 (iv) provide for the development of an integrated web portal for the 43 third-party agent which enables access by minority and women-owned busi- 44 ness enterprises and small businesses in highly distressed areas to 45 obtain information on the capital access loan program including the 46 ability to make application and to receive approval for such loan 47 online; and 48 (v) provide funding for marketing to the third-party agent to be 49 directed to potential loan recipients and to financial institutions to 50 increase awareness participation and referrals to the capital access 51 loan program. 52 § 3. Section 16-k of section 1 of chapter 174 of the laws of 1968, 53 constituting the New York state urban development corporation act, is 54 amended by adding two new subdivisions 4 and 5 to read as follows: 55 4. Notwithstanding any law, rule or regulation to the contrary, the 56 department of financial services, the empire state development corpo-S. 1690--A 3 1 ration and the New York business development corporation shall jointly 2 establish underwriting standards to assist minority and women-owned 3 business enterprises and small businesses in highly distressed areas. In 4 addition to other factors, such standards should incorporate verifiable 5 alternative indications of creditworthiness presented or made available 6 by the applicant. 7 5. Pursuant to subparagraph (v) of paragraph (b) of subdivision 1 of 8 section 212 of the banking law, the New York business development corpo- 9 ration and the empire state development corporation shall enter into an 10 agreement pursuant to which the New York business development corpo- 11 ration shall authorize, maintain and administer the program established 12 in such subparagraph. 13 § 4. This act shall take effect on the one hundred twentieth day after 14 it shall have become a law.
