§ 16-k. Capital access program. 1. Definitions. For the purposes of\nthis section:\n (a) "Financial institution", means any bank, trust company, savings\nbank, savings and loan association or cooperative bank chartered by the\nstate or any national banking association, federal savings and loan\nassociation or federal savings bank or any community development\nfinancial institution or community-based lending organization; provided,\nhowever, that the financial institution has its principal office located\nin the state.\n (b) "Participating financial institution" shall mean any financial\ninstitution participating in the program established by this section.\n (c) "Small business" shall have the same meaning as set forth in\nsection 131 of the economic development law, whose primary place of\nbusiness is in New York state.\n 2. (a) The corporation, or its agent, shall establish a capital access\nprogram to provide a loan loss reserve to assist small businesses that\notherwise find it difficult to obtain regular bank financing.\n (b)(i) Assistance under the capital access program shall be provided\nfor a capital access program under which the corporation or its agent\nshall be authorized to assist small businesses that otherwise find it\ndifficult to obtain regular or sufficient bank financing. Such\nassistance shall take the form of deposits by the corporation or its\nagent in the reserve funds in participating financial institutions to\nfund loan loss reserves for loans made to such small businesses.\n (ii) Any financial institution desiring to become a participating\nfinancial institution shall execute an agreement in such form as the\ncorporation or its agent may prescribe, which agreement shall contain\nthe terms and provisions set forth in paragraph (c) of this subdivision\nand such other terms and provisions as the corporation or its agent may\ndeem necessary or appropriate.\n (c) A participating financial institution originating a loan to a\nsmall business pursuant to this section shall:\n (i) provide a plan to the corporation or its agent for the marketing\nof the capital access program to small businesses, including those in\nhighly distressed areas and to minority- and women-owned businesses,\nwith appropriate lending objectives identified by the financial\ninstitution for such areas and businesses;\n (ii) disperse funds for the purposes of expansion, facility/technology\nupgrading, start-up and working capital;\n (iii) not disperse funds which exceed an amount greater than five\nhundred thousand dollars;\n (iv) set aside an amount, specified or agreed to by the corporation or\nits agent, from both the participating financial organization and the\nsmall business, not less than three percent nor more than seven percent\nof the principal amount of the loan, whereby the amount contributed by\nthe small business does not exceed fifty percent of the total amount\ncontributed by the small business and the financial institution, into a\nloan loss reserve which the institution shall maintain, applicable to\nall such loans by said institution to small businesses pursuant to this\nsection; and\n (v) certify to the corporation or its agent in such a fashion and with\nsuch supporting information as the corporation or its agent shall\nprescribe, that it has made such loan and has set aside its contribution\nand the contribution of the small business.\n (d) The corporation or its agent shall after such certification as\nprovided in subparagraph (v) of paragraph (c) of this subdivision,\ntransfer to the participating financial institution an amount equal to\nthe total of the contributions of the participating financial\ninstitution and the small business or such additional amount up to one\nhundred fifty percent of such contributions as determined by the\ncorporation or its agent. The participating financial institution shall\nset aside such amount so received into said loan loss reserve.\n (e) In the event the participa
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