-  This bill is not active in this session.
 

A06716 Summary:

BILL NOA06716A
 
SAME ASSAME AS S01690-A
 
SPONSORHunter
 
COSPNSR
 
MLTSPNSR
 
Amd 212, Bank L; amd 16-k, UDC Act
 
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.
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A06716 Actions:

BILL NOA06716A
 
05/05/2023referred to economic development
05/15/2023reference changed to banks
05/23/2023reported referred to ways and means
05/31/2023reported referred to rules
06/02/2023amend and recommit to rules 6716a
06/07/2023reported
06/07/2023rules report cal.652
06/07/2023substituted by s1690a
 S01690 AMEND=A SANDERS
 01/13/2023REFERRED TO BANKS
 05/16/2023REPORTED AND COMMITTED TO FINANCE
 06/01/2023AMEND AND RECOMMIT TO FINANCE
 06/01/2023PRINT NUMBER 1690A
 06/05/2023COMMITTEE DISCHARGED AND COMMITTED TO RULES
 06/05/2023ORDERED TO THIRD READING CAL.1458
 06/05/2023PASSED SENATE
 06/05/2023DELIVERED TO ASSEMBLY
 06/05/2023referred to ways and means
 06/07/2023substituted for a6716a
 06/07/2023ordered to third reading rules cal.652
 06/07/2023passed assembly
 06/07/2023returned to senate
 11/29/2023DELIVERED TO GOVERNOR
 12/08/2023SIGNED CHAP.699
 12/08/2023APPROVAL MEMO.45
 01/13/2023REFERRED TO BANKS
 05/16/2023REPORTED AND COMMITTED TO FINANCE
 06/01/2023AMEND AND RECOMMIT TO FINANCE
 06/01/2023PRINT NUMBER 1690A
 06/05/2023COMMITTEE DISCHARGED AND COMMITTED TO RULES
 06/05/2023ORDERED TO THIRD READING CAL.1458
 06/05/2023PASSED SENATE
 06/05/2023DELIVERED TO ASSEMBLY
 06/05/2023referred to ways and means
 06/07/2023substituted for a6716a
 06/07/2023ordered to third reading rules cal.652
 06/07/2023passed assembly
 06/07/2023returned to senate
 11/29/2023DELIVERED TO GOVERNOR
 12/08/2023SIGNED CHAP.699
 12/08/2023APPROVAL MEMO.45
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A06716 Committee Votes:

BANKS Chair:Hunter DATE:05/23/2023AYE/NAY:31/0 Action: Favorable refer to committee Ways and Means
HunterAyeCurranAye
WeprinAyeMikulinAye
Jean-PierreAyeSmullenAye
SeawrightAyeFitzpatrickAye
DickensAyeLemondesAye
VanelAyeDiPietroAye
TaylorAyeJensenAye
SternAyeChangAye
HevesiAyeFloodAye
SayeghAye
BurkeAye
ButtenschonAye
AndersonAye
MitaynesAye
SeptimoAye
TapiaAye
De Los SantosAye
CunninghamAye
RiveraAye
LeeAye
RagaAye
BurdickAye

WAYS AND MEANS Chair:Weinstein DATE:05/31/2023AYE/NAY:34/1 Action: Favorable refer to committee Rules
WeinsteinAyeRaAye
GlickAyeFitzpatrickAye
PretlowAyeHawleyAye
ColtonAyeBlankenbushAye
CookAyeNorrisAye
AubryAyeBrabenecAye
BenedettoAyePalmesanoAye
WeprinAyeWalshNay
RamosAyeDeStefanoAye
BraunsteinAyeManktelowAye
McDonaldAyeSmullenAye
RozicAye
DinowitzAye
JoynerAye
MagnarelliAye
ZebrowskiAye
BronsonAye
DilanAye
SeawrightAye
HyndmanAye
WalkerAye
Bichotte HermelAye
SimonAye
CruzAye

RULES Chair:Pretlow DATE:06/07/2023AYE/NAY:28/0 Action: Favorable
HeastieExcusedBarclayAye
WeinsteinAyeHawleyAye
PretlowAyeGiglioAye
CookAyeBlankenbushAye
GlickAyeNorrisAye
AubryAyeRaAye
DinowitzAyeBrabenecAye
ColtonAyePalmesanoAye
MagnarelliAyeReillyAye
PaulinAye
Peoples-StokesAye
BenedettoAye
LavineAye
LupardoAye
ZebrowskiAye
ThieleAye
BraunsteinAye
DickensAye
DavilaExcused
HyndmanAye
RozicAye
BronsonExcused

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A06716 Floor Votes:

There are no votes for this bill in this legislative session.
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A06716 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6716A
 
SPONSOR: Hunter
  TITLE OF BILL: An act to amend the banking law and the New York state urban development corporation act, in relation to the capital access program   PURPOSE: This bill would expand the capacity of the Pursuit, a lending corpo- ration, so minority- and women-owned business enterprises (MBEs) have access to more capital. Additionally, this bill would require the New York State Department of Financial Services, the Empire State Develop- ment Corporation and the New York Business Development Corporation (now called the Pursuit Lending Corporation) to jointly establish underwrit- ing standards to assist minority business enterprises and small busi- nesses in highly distressed areas.   SUMMARY OF PROVISIONS: Section 1: establish a program in cooperation with the empire state development corporation that shall focus on small businesses located in highly distressed areas and minority business enterprises as such desig- nations are defined by the regulations of the New York state urban development corporation act. Section 2: - the underwriting standards provided for in subdivision four of this section to evaluate applications for loans pursuant to the program filed by a minority business enterprise, or a small business whose principal place of business is in a highly distressed area; - provide for the development of an integrated web portal for the third- party agent which enables access by minority business enterprises and small businesses in highly distressed areas to obtain information on the capital access loan program including the ability to make application and to receive approval for such loan online; and - provide funding for marketing to the third-party agent to be directed to potential loan recipients and to financial institutions to increase awareness participation and referrals to the capital access loan program. Section 3: the New York State Department of Financial Services, the Empire State Development Corporation and the New York Business Develop- ment Corporation (now called the Pursuit Lending Corporation) shall jointly establish underwriting standards to assist minority business enterprises and small businesses in highly distressed areas. Section 4: Effective Date   JUSTIFICATION: The COVID-19 Pandemic caused many New York small businesses, especially MWBEs), to struggle. The New York Business Development Corporation and affiliates The 504 Company and Excelsior Growth Fund rebranded as Pursuit, a business loan lending company. The mission of Pursuit is to provide businesses with affordable small business loans and resources so that they can reach higher, transform and grow. Pursuit is a communi- ty-focused small business lender. This legislation would help MWBEs get easier access to capital to help strengthen their businesses.   LEGISLATIVE HISTORY: 2022: A6716 - referred to economic development   FISCAL IMPLICATIONS: TBD   EFFECTIVE DATE: This act shall take effect on the one hundred twentieth day after it shall have become a law.
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A06716 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6716--A
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                       May 5, 2023
                                       ___________
 
        Introduced by M. of A. HUNTER -- read once and referred to the Committee
          on  Economic  Development -- reported and referred to the Committee on
          Ways and Means -- reported and referred to the Committee on  Rules  --
          again  reported from said committee with amendments, 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.
                                                                   LBD05985-03-3

        A. 6716--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-

        A. 6716--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.
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