Provides that microbusinesses in New York are eligible for small business revolving loans and the linked deposit interest rate reductions.
Summary
Bill S06010 amends various state laws to facilitate access to small business loans for microbusinesses in New York. It defines a microbusiness as a business that is independently owned, not dominant in its field, and employs fewer than five individuals. The bill also mandates that at least five million dollars in program funds be allocated to lending organizations specifically for micro-loans to these microbusinesses, allowing them to apply for funding similarly to other small businesses.
Impact
The bill will significantly impact the economic development landscape in New York by expanding the definition of eligible small businesses to include microbusinesses. This change is expected to enhance access to financial resources for small enterprises, particularly those in economically distressed areas, thereby promoting growth and sustainability in local economies.
Sentiment
The sentiment surrounding Bill S06010 appears to be largely positive, as indicated by the unanimous support in committee votes and a strong majority in the final Senate floor vote. The bill is seen as a proactive measure to support small businesses, especially in light of ongoing economic challenges.
Contention
While the bill has received broad support, there may be some contention regarding the allocation of funds and the criteria for defining microbusinesses. Some stakeholders may argue about the sufficiency of the five million dollars allocated or express concerns about the bureaucratic processes involved in applying for these loans.
Empowering disadvantaged state contractors” provides up-front down payments and bridge loans to socially or economically disadvantaged microbusinesses and small businesses that secure state contracts through CDFIs and non-traditional lenders
Establishes the contract New York program to provide tax credits to corporations contracting with emerging microbusinesses; directs the department of economic development and the empire state development corporation to create and maintain a registry of emerging microbusinesses and to biannually implement best practices for engaging corporations to utilize such registry; establishes the contract New York tax credit for New York corporations with eligible contracts with emerging microbusinesses.
Establishing the Kanbucks program to authorize the state treasurer to invest in linked deposits with eligible financial institutions to provide linked deposit loans to eligible borrowers and abolishing the Kansas agricultural production, housing, extraordinary utility costs and economic recovery loan deposit programs and the city utility low-interest loan program.
Establishes the small homeowner rehabilitation revolving loan program administered by the New York state housing finance agency consisting of moneys appropriated by the legislature, repayments of principal and interest on loans made from the program, interest earnings, private or philanthropic contributions, and any other moneys made available for its purposes; authorizes the New York state housing finance agency to make low-interest loans, deferred payment loans, or forgivable loans, or a combination thereof, to eligible small homeowners for eligible rehabilitation and repair projects; provides for eligibility requirements and tenant protections.
Enacts the "New York small business growth and support act"; authorizes certain tax exemptions for newly established small businesses during their first three years of operations.