2021 New York Laws
GMU - General Municipal
Article 18-A - Industrial Development
Title 1 - Agencies, Organization and Powers
859-C - State Disaster Emergency Loan Program.

* §  859-c.  State disaster emergency loan program. 1. For purposes of
this section:
  a. "grace period" means the sixty-day period after  a  state  disaster
emergency ends;
  b.  "eligible  entity"  means  both  a  small  business  and  a  small
not-for-profit corporation that:
  (i) is physically located in the state; and
  (ii) was operational prior to the state disaster emergency.
  c. "small  business"  means  a  business  with  not  more  than  fifty
employees;
  d.   "small   not-for-profit   corporation"   means  a  not-for-profit
corporation, formed pursuant to the not-for-profit corporation law  with
not more than fifty employees; and
  e.  "state  disaster  emergency"  means  the period in which executive
order two hundred two of two thousand twenty, as amended, is  in  effect
to address the outbreak of novel coronavirus, COVID-19.
  2.  Any  industrial  development  agency  (IDA) may administer a state
disaster emergency loan program to provide loans from available  revenue
to  eligible entities pursuant to this section, provided that no IDA may
create more than one state disaster emergency loan program.
  3. a. An IDA may make a loan to an eligible  entity  upon  application
from  such  entity  through  the  state disaster emergency loan program,
provided the IDA has determined that the applicant:
  (i) was a financially  viable  entity  prior  to  the  state  disaster
emergency;
  (ii) conducts business in the area served by the IDA; and
  (iii) has been negatively affected by the state disaster emergency.
  b.   An  IDA  shall  consider  the  following,  before  approving  the
application of an eligible entity for a loan under  the  state  disaster
emergency loan program:
  (i)  creditworthiness  of  the  applicant  prior to the state disaster
emergency;
  (ii) the level of negative impact of the state disaster  emergency  on
the operations and finances of the applicant;
  (iii) applicant's proposed plan to use the funds received through this
program;
  (iv)  applicant's ties to their community and the impact of their work
in the area served by the IDA;
  (v) applicant's assurance that efforts will be  made  to  retain  jobs
during the state disaster emergency; and
  (vi) other potential sources of funding available to the applicant.
  c.  An IDA shall give priority under the state disaster emergency loan
program to applications from applicants serving highly distressed  areas
as  defined  pursuant  to  subdivision eighteen of section eight hundred
fifty-four of this title.
  d. No applicant shall be permitted to receive loans from more than one
IDA.
  e. Any IDAs that serve within the same municipalities shall coordinate
the distribution of loans in the state disaster emergency loan program.
  4. Prior to administering a state disaster emergency loan program,  an
IDA  shall develop, and adopt by resolution, the terms and conditions of
such loans, provided that:
  a. The amount of any loan provided pursuant to this section shall  not
exceed  twenty-five  thousand dollars, provided that the total amount of
all loans received by an eligible entity shall  not  exceed  twenty-five
thousand dollars;
  b. The loan agreement shall not (i) require repayment during the grace
period, or (ii) charge interest on the principal amount;

  c. The loan agreement shall require that the eligible entity repay the
loan  in full not later than one year after the end of the grace period;
and
  d.  The  loan  agreement  shall  not  contain a fee or penalty for the
prepayment or early payment of the loan.
  5. The IDA shall offer credit counseling services  or  refer  eligible
entities to not-for-profit credit counselors.
  6.  a.  Each  IDA shall maintain records related to the state disaster
emergency loan program, including  a  record  of  loans  issued  and  of
payments  received,  and  include  such information in the annual report
required by section twenty-eight hundred of the public authorities law.
  b. An IDA that establishes a state  disaster  emergency  loan  program
pursuant  to this section shall submit a report on the program including
but not limited to the number and aggregate amount of loans given, loans
fully repaid, any outstanding loans, defaults  and  bad  debts,  to  the
governor,  the  speaker  of the assembly, and the temporary president of
the senate one year after the state disaster emergency ends.
  7. Any interest deferred or not  charged  related  to  a  loan  issued
pursuant  to  this section shall be exempt from all state taxes that may
be applicable to such interest amounts as they  relate  to  an  eligible
entity.  IDAs  shall  disclose  to  eligible  entity  borrowers  in loan
documents that there may be federal  tax  consequences  to  the  program
loans.
  8. No new loan applications pursuant to this section shall be accepted
after the state disaster emergency ends.
  * NB Repealed December 31, 2022