N.Y. Urban Development Corporation Act 174/68 § 9-f: Special assistance for small and medium-sized businesses which are adversely affected by the absence of eligible reservists ordered to ac...

§ 9-f. Special assistance for small and medium-sized businesses which

are adversely affected by the absence of eligible reservists ordered to

active duty with the armed forces. (1) In addition to loans for small

and medium-sized business assistance projects authorized by this act,

the corporation is hereby authorized to make loans to assist a small or

medium-sized business concern which is likely to suffer economic injury

as the result of the owner, manager or key employee of such small or

medium-sized business concern who is an eligible reservist being ordered

to active military duty during a period of military conflict. The

corporation shall determine the term and interest rate of such loans

except that no loan shall exceed one hundred fifty thousand dollars, no

loan shall have an interest rate greater than five percent and no loan

shall have a term that exceeds a number of years which in the opinion of

the corporation is necessary for the small or medium-sized business

concern to recover financially from the absence of such eligible

reservist. Any such loan shall be secured by a security agreement

chattel paper, loan agreement or such other instruments or documents

deemed necessary or convenient by the corporation to secure the loan. In

determining the economic need for a loan authorized by this section, the

corporation shall consider the decline in income or gross receipts of

the business during the period of active military duty of the eligible

reservist. Such loans shall be made in an expeditious manner to enable

the small or medium-sized business concern to recover forthwith from

such absence. Loans made pursuant to this section shall be used for

working capital by the small or medium-sized business concern. The

corporation shall render such other assistance and services as it deems

advisable and proper in connection with such loans and the purpose

therefor.

(2)(a) With respect to any loan granted to a small or medium-sized

business concern pursuant to this act, the corporation may temporarily

suspend the repayment obligation of any small or medium-sized business

concern if any person liable thereon is or if any owner, manager or key

employee is an eligible reservist called to active duty in the military

service subsequent to the disbursement of the proceeds of such loan and

such business concern has suffered or is likely to suffer economic

injury as a result of such order. The suspension, if approved, shall be

effective on the date the corporation is notified that the eligible

reservist has commenced active duty status or, at the election of the

corporation it shall be made effective at any time subsequent to the

date such eligible reservist entered active duty status, and shall

continue for ninety days after such person is discharged or released

from active duty.

(b) Within thirty days after the return to non-active duty status of

any person to whom this subdivision may apply, the corporation shall

arrange a meeting with the affected small or medium-sized business to

arrange repayment of the loan. The corporation is authorized to extend

the terms of any loan or to set a repayment schedule for such loans made

for a period of up to one year for each sixty days of active duty, but

not to exceed five years.

(c) If the corporation determines that such small or medium-sized

business concern meets the criteria of this subdivision, it may, in its

discretion, reduce or eliminate the assistance provided herein if it

determines such business has the financial ability to meet the terms and

conditions of the obligation without substantially disrupting business

operations. Any such determination shall be made only after affording

the applicant the opportunity to present information in person or

through others in support of the request for assistance.

(3) Nothing in this section shall preclude a small or medium-sized

business concern which is ineligible for assistance pursuant to the

provisions of this section from qualifying for any other assistance

pursuant to article 13 of the military law or the Federal Soldiers' and

Sailors' Civil Relief Act of 1940, as amended.

(4) The corporation is directed to liberally construe the provisions

of this section to benefit eligible small and medium-sized business

concerns in recovering from any demonstrated economic loss caused by the

active military service of the eligible reservist.