New York Senate Bill S05973

New York 2025-2026 Regular Session

• Introduced: 3/4/25
• Refer: 3/4/25
• Refer: 1/7/26

Caption

Creates the New York state community service loan board to fund state businesses adversely affected by state agency actions; provides for the organization, powers and duties thereof; provides for bridge loans to certain community organizations; appropriates $100,000 therefor.

Summary

Bill S05973 establishes the New York State Community Service Loan Board, which is tasked with providing short-term, no-interest loans to eligible not-for-profit organizations and local government entities that are adversely affected by state agency actions. The board will consist of seven members appointed by various state leaders and will operate under the New York State Department of State. The loans are intended to assist these organizations in maintaining operations, paying employee salaries, and meeting financial obligations. The bill also includes provisions for the board to report annually on its activities and the financial status of the loans issued.

Impact

The creation of the New York State Community Service Loan Board will introduce a new mechanism for financial support to not-for-profit organizations and local government entities that are struggling due to delays or failures in state agency funding. This could potentially stabilize these organizations and ensure continuity of services they provide to the community. The bill appropriates $100,000 from the state treasury to fund these activities, which will impact the state budget and financial management of the Department of State.

Sentiment

The sentiment surrounding Bill S05973 appears to be generally supportive, as it aims to provide financial assistance to organizations that play a crucial role in community services. However, there may be concerns regarding the management of the loans and the potential for increased state financial liability if organizations fail to repay the loans.

Contention

Notable points of contention may arise regarding the eligibility criteria for organizations seeking loans, particularly the cap on annual operating budgets. Some stakeholders may argue that the limit of $1.5 million could exclude larger organizations that also provide essential services. Additionally, the repayment terms and the consequences for organizations that fail to repay loans may raise concerns about the fairness and feasibility of the program.