N.Y. Urban Development Corporation Act 174/68 § 16-gg: Small business seed funding grant program

* § 16-gg. Small business seed funding grant program. 1. Definitions.

As used in this section, the following terms shall have the following

meanings:

(a) "Small business" shall mean a business which is resident in this

state, independently owned and operated, not dominant in its field, and

employs one hundred or less persons, was started on September 1, 2018 or

later and has been operational for a minimum of six months prior to

application.

(b) "Micro-business" shall mean a business which is a resident in this

state, independently owned and operated, not dominant in its field, and

employs ten or less persons.

(c) "The program" shall mean the small business seed funding grant

program established pursuant to subdivision two of this section.

(d) "Applicant" shall mean a micro-business, small business, or

for-profit independent arts and cultural organization, including

independent arts contractors submitting an application for a grant award

to the program.

(e) "For-profit independent arts and cultural organization" shall mean

a small or medium sized private for-profit, independently operated

live-performance venue, promoter, production company, or performance

related business, including independent arts contractors, located in New

York state negatively impacted by COVID-19 health and safety protocols,

and having one hundred or less full-time employees, excluding seasonal

employees.

2. Small business seed funding grant program established. The small

business seed funding grant program is hereby created to provide

assistance to early-stage small businesses to succeed in a recovering

New York state economy.

3. Authorization. The corporation is hereby authorized, using

available funds, to issue grants and provide technical assistance and

outreach to micro-businesses, small businesses, for-profit arts and

cultural organizations including independent arts contractors and

technical assistance partners for the purpose of aiding the recovery of

the New York state economy, and may promulgate guidelines to effectuate

the purposes herein.

4. Selection criteria and application process. (a) In order to be

eligible for a grant or additional form of support under the program, an

eligible small business shall:

(i) be incorporated in New York state or licensed or registered to do

business in New York state and must be resident in the state of New

York;

(ii) be a currently viable micro-business, small business, for-profit

arts and cultural organization including independent arts contractors

that started business on September 1, 2018 or later and has been

operational for at least six months before an application is submitted;

(iii) have between five thousand and one million dollars in gross

receipts or be able to demonstrate five thousand dollars in business

expenses;

(iv) be in substantial compliance with applicable federal, state and

local laws, regulations, codes and requirements; and

(v) not owe any federal, state or local taxes, or have an approved

repayment, deferral plan, or agreement with appropriate federal, state,

and local taxing authorities.

(b) (i) Grants awarded from this program shall be available to

eligible micro-businesses, small businesses, and for-profit arts and

cultural organizations including independent arts contractors that do

not qualify for business assistance grant programs under the federal

American Rescue Plan Act of 2021 or any other available federal COVID-19

economic recovery or business assistance grant programs, including loans

forgiven under the federal Paycheck Protection Program, or are unable to

obtain sufficient business assistance from such federal programs, with

priority given to socially and economically disadvantaged business

owners including, but not limited to, minority and women-owned business

enterprises, service-disabled veteran-owned businesses, and

veteran-owned businesses, or businesses located in communities that were

economically distressed prior to March 1, 2020, as determined by the

most recent census data.

(ii) Grants awarded from this program shall be available to eligible

micro-businesses, small businesses and for-profit arts and cultural

organizations including independent arts contractors that did not

qualify for business assistance under the COVID-19 pandemic small

business recovery grant program as provided for in section sixteen-ff of

this act.

5. Eligible costs. (a) Eligible costs considered for micro-businesses

and small businesses under this program must have been incurred between

September 1, 2018 and January 1, 2022.

(b) (i) The following costs incurred by a micro-business, small

business, and for-profit arts and cultural organization including

independent arts contractors shall be considered eligible under the

program at a minimum: payroll costs; costs of rent or mortgage as

provided for in subparagraph (ii) of this paragraph; costs of repayment

of local property or school taxes associated with such small business's

location as provided for in subparagraph (iii) of this paragraph;

insurance costs; utility costs; costs of personal protection equipment

(PPE) necessary to protect worker and consumer health and safety;

heating, ventilation, and air conditioning (HVAC) costs, or other

machinery or equipment costs, or supplies and materials necessary for

compliance with COVID-19 health and safety protocols, and other

documented COVID-19 costs as approved by the corporation.

(ii) Mortgage payments or commercial rent shall be considered eligible

costs.

(iii) Payment of local property taxes and school taxes shall be

considered eligible costs.

(c) Grants awarded under the program shall not be used to re-pay or

pay down any portion of a loan obtained through a federal coronavirus

relief package for business assistance or any New York state business

assistance programs.

6. Application and approval process. (a) An eligible micro-business,

small business, or for-profit arts and cultural organization including

independent arts contractors shall submit a complete application in a

form and manner prescribed by the corporation.

(b) The corporation shall establish the procedures and time period for

micro-businesses, small businesses, or for-profit arts and cultural

organizations including independent arts contractors to submit

applications to the program. As part of the application each

micro-business, small business, or for-profit arts and cultural

organization including independent arts contractors shall provide

sufficient documentation in a manner prescribed by the corporation to

demonstrate hardship, and prevent fraud, waste, and abuse.

7. Technical assistance and outreach. The corporation may offer or

make available to all applicants, regardless of approval status, direct

or indirect access to financial and business planning, legal

consultation, language assistance services, mentoring services for

post-pandemic planning, reopening planning assistance and other

assistance and support as determined by the corporation. Assistance,

support, outreach and other services may be provided by or through

partner organizations, including but not limited to chambers of

commerce, local business development corporations, trade associations

and other community organizations that have expertise and background in

providing technical assistance, at the discretion of the corporation.

8. Reporting. The corporation, on a quarterly basis beginning

September 30, 2022, and ending when all program funds are expended,

shall submit a separate and distinct report to the governor, the

temporary president of the senate, and the speaker of the assembly

setting forth the activities undertaken by the program. Such quarterly

report shall include, but need not be limited to: the number of

applicants and their county locations; the number of applicants approved

by the program and their county location; the total amount of grants

awarded, and the average amount of such grants awarded; and such other

information as the corporation determines necessary and appropriate.

Such report shall be included on the corporation's website and any other

publicly accessible state database that list economic development

programs, as determined by the commissioner. Such reporting may be

incorporated as part of any reporting required under section sixteen-ff

of this act.

* NB There are 2 § 16-gg's