BILL NUMBER: S6010
SPONSOR: BASKIN
 
TITLE OF BILL:
An act to amend the economic development law, the state finance law and
the New York state urban development corporation act, in relation to
making small business loans available to microbusinesses
 
PURPOSE:
To provide that microbusinesses in New York are eligible for small busi-
ness revolving loans and the linked deposit interest rate reductions.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 adds a new section 131-a to the economic development law to
include the definition of a microbusiness as one that is resident in New
York state, independently owned and operated, not dominant in its field,
and employs under five persons.
Section 2 amends paragraph f subdivision 11 of section 213 of the state
finance law, as added by chapter 705 of the laws of 1993, by adding a
new paragraph h stating that a microbusiness (that has been in operation
for 5 years and that is located in an empire zone, empowerment zone, a
highly distressed area of renewal community) is an eligible business for
the purpose of the excelsior linked deposit program.
Section 3 amends section 16-t of section 1 of chapter 174 of the laws of
1968 by adding a new subdivision 16 to provide that $5 million in
program funds be available for micro-loans to microbusinesses, which
will be eligible to apply in the same manner as other small businesses.
 
JUSTIFICATION:
Microbusinesses have been estimated to constitute around 90% of all
businesses within New York State by the Association for Enterprise
Opportunity. A microbusiness is a business that has five or fewer
employees. Given their nature, it is often difficult for microbusiness
owners to access capital through lending institutions. A microbusiness
can consist of a wide variety of businesses that run from 'mom and pop'
shops to start-up tech companies. These businesses are both the backbone
and the future of our economy.
Given their prevalence and importance, this bill adds the definition of
microbusinesses to the law in order to allow for their inclusion in
successful state programs, including the linked deposit program and
small business revolving loan fund.
 
LEGISLATIVE HISTORY:
2023-24: S6490 Referred to Commerce, Economic Development, and Small
Business
2021-22: S.3867
2019-20: S.1543 Referred to Commerce, Economic Development, and Small
Business
2017-18: S.1802 Referred to Commerce, Economic Development, and Small
Business
2015-16: Referred to Commerce, Economic Development, and Small Business
2014: S.546 Referred to Commerce, Economic Development, and Small Busi-
ness
2012: S.7556 Referred to Commerce, Small Business Economic Development
 
FISCAL IMPLICATIONS:
No additional cost to the state is estimated.
 
EFFECTIVE DATE:
Immediately.