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A06716 Text:

                STATE OF NEW YORK
                               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.

        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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