Bill > S05973

This bill creates the New York State Community Service Loan Board, a seven-member board appointed by various state leaders, to provide short-term, no-interest loans to small not-for-profit agencies and local government entities (with annual budgets under $1.5 million) that are experiencing financial difficulties while waiting for state contract renewals or payments. The board can provide loans up to $60,000 or 10% of an organization's anticipated yearly grant to help cover day-to-day operations, employee salaries, and other financial obligations. Loan applicants must provide documentation from the relevant state agency showing a pending payment obligation. If an organization fails to repay its loan, it will be ineligible for state grants for two years, and the board can collect the outstanding balance directly from the state agency by deducting it from the future grant. The board must submit an annual report to the governor and legislature detailing its activities, including loan applications and recipients. The bill appropriates $100,000 to establish and operate the board, which will be administratively housed within the New York State Department of State and begin functioning on October 1st following its passage into law.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S5973