N.Y. Urban Development Corporation Act 174/68 § 38: Small business and minority-owned and women-owned business enterprises transportation capital assistance and guaranteed loan program

§ 38. Small business and minority-owned and women-owned business

enterprises transportation capital assistance and guaranteed loan

program. 1. To provide financial assistance to small business and

minority-owned and women-owned business enterprises engaged in

government sponsored, transportation related construction projects, the

corporation shall establish a small business and minority-owned and

women-owned business enterprise transportation capital assistance

revolving loan fund which shall provide loans or loan guarantees to

small business and minority-owned and women-owned business enterprises.

For purposes of this section: (a) the term small business shall have the

same meaning as defined in section one hundred thirty-one of the

economic development law and (b) the term project shall mean a project

of state agency or authority that sponsors transportation related

construction projects and participates in this program and any

definition of project contained elsewhere in this act shall not apply.

2. Such loans, or loan guarantees for loans made by federally and

state chartered credit institutions, financial institutions, and

federally insured banking organizations to small business and

minority-owned and women-owned business enterprises, shall be used to

(a) enable such businesses, through the acquisition, leasing or

improvement of real property, machinery or equipment, or through the

provision of working capital to secure service, commodity or

construction contracts; (b) restore working capital to such businesses

which have successfully completed work under a contract but whose

liquidity has been adversely affected by problems resulting from delayed

payments; and (c) ensure the completion of the work associated with a

governmental service, commodity or construction contract in order to

prevent default on such contract.

3. (a) To be eligible for such loans or loan guarantees (i) a

minority-owned or women-owned business enterprise must be certified as a

minority-owned or women-owned business enterprise pursuant to article

15-A of the executive law; and (ii) a small business or a minority-owned

or women-owned business enterprise shall have a contract or sub-contract

to provide goods or services related to a government sponsored,

transportation related construction project.

(b) Only such business enterprises referred to the corporation by a

written application of a state agency or authority that sponsors

transportation related construction projects shall be eligible for

program assistance. Such assistance shall be provided to such an

enterprise only in connection with its performance as a contractor or

sub-contractor on a specific transportation related project of the

referring agency or authority. In order for such an agency or authority

to refer such enterprises to the corporation, such agency or authority

shall enter into a master agreement with the corporation covering

procedures and requirements for providing program assistance. The

corporation shall determine whether or not to approve such an agency's

or authority's written application for program assistance to such a

business within twenty business days of the corporation's receipt of

such application. If it approves the application, the corporation will

provide assistance pursuant to the applicable master agreement.

4. The corporation shall give preference to minority-owned and

women-owned business enterprises in making such loans and loan

guarantees and shall establish such other criteria as it may deem

necessary for this program and for any required amount that shall be

held in reserve for any guarantees made under this program.

5. Notwithstanding any inconsistent provision of law, general, special

or local, including pursuant to capital projects budget appropriations

or reappropriations, where applicable, the corporation is hereby

authorized to enter into such agreements as may be necessary for the

operation and administration of a small business and minority-owned and

women-owned business enterprises transportation capital assistance and

guaranteed loan program.

6. The corporation is authorized to establish a revolving loan fund

account into which funds may be received and from which funds may be

expended for the aforementioned purposes.

7. The provisions of section ten and subdivision two of section

sixteen of this act shall not apply to assistance provided under this

program.