BILL NUMBER: S9085
SPONSOR: MARTINEZ
 
TITLE OF BILL:
An act to amend the general municipal law, in relation to the powers of
industrial development agencies and certain loans and grants to eligible
entities
 
PURPOSE:
To require uniform criteria for evaluation and selection of grants and
loans by industrial development agencies.
 
SUMMARY OF PROVISIONS:
Section 1. Subdivision 17 of Section 858 of the General Municipal Law is
renumbered subdivision 19 and two new subdivisions 17 and 18 are added
relating to the powers of industrial development agencies to provide
loans and grants to eligible entities under uniform criteria.
Section 2. Amends the General Municipal Law by adding a new Section
859-c establishing uniform criteria for evaluation of selection of
eligible entities for loans.
Section 3. Is the enactment clause.
 
JUSTIFICATION:
This legislation would expand industrial development agencies' ability
to drive their mission of promoting economic welfare and prosperity, as
well as attracting industry to local communities, by granting them the
authority to issue small grants and loans to their local small busi-
nesses and not-for-profits.
The financial incentives IDAs are currently authorized to use are a
critically important tool in attracting new economic development
projects. Through the issuance of grants and loans, IDAs can be instru-
mental in not only bringing new business, but in keeping small existing
businesses and NFPs in their communities during times of need, or after
a disaster emergency, and allowing them to grow as well.
The bill sets forth requirements for receiving entities to be financial-
ly viable and provide plans on how funds would be used, does not allow
for more than one grant or loan to be given per project, and requires
each IDA to adopt conditions for their loan program, and maintain rele-
vant records.
This legislation would allow IDAs to support their communities by stabi-
lizing and helping grow local small businesses and not-for-profits.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately