Bill > S09085

This bill amends the general municipal law to establish uniform criteria for industrial development agencies (IDAs) when providing loans and grants to eligible entities, which are defined as small businesses or not-for-profit organizations with fifty or fewer full-time equivalent employees physically located within the agency's jurisdiction. An equivalent full-time employee is defined as two or more part-time jobs that together equal at least 35 hours per week. The bill requires IDAs to adopt resolutions outlining criteria for evaluating and selecting these entities, which may include financial viability, business location, creditworthiness, and a plan for using funds for qualified projects like capital improvements or business expansion. It also mandates coordination among IDAs serving the same municipalities to prevent duplicate funding for a single entity per project, and stipulates that outstanding loans must be fully repaid before an agency can issue another to the same entity. The bill sets a maximum of $100,000 in funding per project and a lifetime limit of $100,000 for any eligible entity within a ten-year period, and requires agencies to establish policies for the return of funds if eligibility changes or project shortfalls occur. Furthermore, IDAs must maintain records of loans and grants, including repayment and default information, and report this data annually. Any deferred or uncharged interest on these loans will be exempt from state taxes for the eligible entity, though borrowers will be informed of potential federal tax consequences.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S9085