§ 16-t. Small business revolving loan fund. 1. The small business\nrevolving loan fund program is hereby created. The corporation is\nauthorized, within available appropriations, to provide low interest\nloans to community development financial institutions, in order to\nprovide funding for those lending organizations' loans to small\nbusinesses, and micro-businesses located within New York state, that\ngenerate economic growth and job creation within New York state but that\nare unable to obtain adequate credit or adequate terms for such credit.\nIf in the discretion of the corporation the use of a community\ndevelopment financial institution is not practicable based upon the\napplication of rules and regulations developed by the corporation,\nincluding, but not limited to, assessments of geographic and\nadministrative capacity, then the corporation is authorized, within\navailable appropriations, to provide low interest loans to the following\nother local community based lending organizations: small business\nlending consortia, certified development companies, providers of United\nStates department of agriculture business and industrial guaranteed\nloans, United States small business administration loan providers,\ncredit unions and community banks. As used in this section "small\nbusiness" means a business that is resident in New York state,\nindependently owned and operated, not dominant in its field, and employs\none hundred or fewer persons. As used in this section "micro-business"\nmeans a business that is resident in New York state, independently owned\nand operated, and employs less than five people.\n 2. In order for a lending organization to be eligible to receive\nprogram funds, it must have established sufficient expertise to analyze\nsmall business and micro-businesses applications for program loans,\nevaluate the creditworthiness of small businesses, and micro-businesses\nand regularly monitor program loans. The lending organization shall\nreview every program loan application in order to determine, among other\nthings, the feasibility of the proposed use of the requested financing\nby the small business or micro-business applicant, the likelihood of\nrepayment and the potential that the loan will generate economic\ndevelopment and jobs within New York state. The corporation shall\nidentify eligible lending organizations through one or more competitive\nstatewide or local solicitations. The corporation shall show preference\nin awarding program funds to lending organizations who serve\nmicro-businesses and micro-loans.\n 3. Program loans to small businesses and micro-businesses shall be\ntargeted and marketed to minority and women-owned enterprises,\nveteran-owned enterprises as set forth in 15 U.S.C. section 632(Q)(3),\nas amended from time to time, and service-disabled veteran-owned\nenterprises as set forth in article three of the veterans' services law,\nand other small businesses and micro-businesses that are having\ndifficulty accessing traditional credit markets. Program loans to small\nbusinesses and micro-businesses shall be used for the creation and\nretention of jobs, as defined by the corporation, including: (a) working\ncapital; (b) the acquisition and/or improvement of real property; (c)\nthe acquisition of machinery and equipment, property or improvement; or\n(d) the refinancing of debt obligations. There shall be two categories\nof loans to small businesses and micro-businesses: a micro loan that\nshall have a principal amount that is less than twenty-five thousand\ndollars and a regular loan that shall have a principal amount not less\nthan twenty-five thousand dollars. Prior to receiving program funds, the\nlending organization must certify to the corporation that such loan\ncomplies with this section and rules and regulations promulgated for the\nprogram and that the lending organization has performed its obligations\npursuant to and is in compliance with this section, the program rules\nan
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