File #: Int 0841-2024    Version: * Name: Provision of interest-free loans to small businesses, non-profits and freelance workers following certain emergency circumstances
Type: Introduction Status: Committee
Committee: Committee on Small Business
On agenda: 4/18/2024
Enactment date: Law number:
Title: A Local Law to amend the administrative code of the city of New York, in relation to the provision of interest-free loans to small businesses, non-profits and freelance workers following certain emergency circumstances
Sponsors: Public Advocate Jumaane Williams, Keith Powers , Farah N. Louis, Lincoln Restler, Shahana K. Hanif, Crystal Hudson, Pierina Ana Sanchez, Julie Won, Jennifer Gutiérrez, Justin L. Brannan, Gale A. Brewer
Council Member Sponsors: 11
Summary: This bill would require the Department of Small Business Services to create an interest-free loan program for small businesses, non-profit organizations and freelance workers forced to close or operate at reduced capacity due to the impacts of a natural disaster, state of emergency or other emergency circumstances. Qualifying small businesses would be able to use these loans for operating expenses such as rent, payroll, insurance, equipment and inventory costs.
Indexes: Agency Rule-making Required
Attachments: 1. Summary of Int. No. 841, 2. Int. No. 841, 3. April 18, 2024 - Stated Meeting Agenda, 4. Hearing Transcript - Stated Meeting 4-18-24, 5. Minutes of the Stated Meeting - April 18, 2024
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
4/18/2024*Public Advocate Jumaane Williams City Council Referred to Comm by Council  Action details Meeting details Not available
4/18/2024*Public Advocate Jumaane Williams City Council Introduced by Council  Action details Meeting details Not available

Int. No. 841

 

By the Public Advocate (Mr. Williams) and Council Members Powers, Louis, Restler, Hanif, Hudson, Sanchez, Won, Gutiérrez, Brannan and Brewer

 

A Local Law to amend the administrative code of the city of New York, in relation to the provision of interest-free loans to small businesses, non-profits and freelance workers following certain emergency circumstances

 

Be it enacted by the Council as follows:

Section 1. Subchapter 2 of chapter 8 of title 22 of the administrative code of the city of New York is amended by adding a new section 22-1007 to read as follows:

§ 22-1007 Emergency loan programs. a. Definitions. For purposes of this section, the following terms have the following meanings:

Freelance worker. The term “freelance worker” means any natural person or any organization composed of no more than one natural person, whether or not incorporated or employing a trade name, that is hired or retained as an independent contractor by a hiring party to provide services in exchange for compensation.

Interest-free loan. The term “interest-free loan” means a loan with terms including interest rates of zero percent.

Operating expenses. The term “operating expenses” means money spent during the normal operation of business, including but not limited to rent, payroll, insurance, equipment, inventory costs, and other expenses as determined by the commissioner.

Small business. The term “small business” means a small business as defined by the United States small business administration pursuant to part 121 of title 13 of the code of federal regulations.

b. During emergencies declared by the mayor or governor, the department shall establish and operate a program to provide interest-free loans to partially or fully fund the operating expenses of small businesses, non-profit organizations, or freelance workers and independent contractors not otherwise eligible for unemployment insurance, that are required to substantially limit their operations by, or which are otherwise substantially negatively impacted financially by, such state of emergency.

c. The commissioner shall establish eligibility criteria and procedures for the application for, disbursement of, and repayment of interest-free loans pursuant to this section. Such information established pursuant to this subdivision shall be made publicly available on the department’s website.  Such criteria must ensure that loans are: (i) made available to individuals and entities regardless of immigration status or prior contractual relationships with the City, and (ii) distributed in a manner that focuses on individuals and entities that have been excluded from state and federal small business loan programs, if any.

d. The commissioner shall establish the terms and conditions of such loans, including: (i) the amount to be loaned, (ii) the length of the repayment term, (iii) procedures in the event of default, and (iv) circumstances upon which a borrower would be released from the obligation to repay part or all of a loan received pursuant to this section.

§ 2. This local law takes effect 1 year after it becomes law, except that the commissioner of small business services shall take such measures as are necessary for the implementation of this local law, including the promulgation of rules, before such date.

 

Session 13

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1/18/24

 

Session 12

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4/29/22 3:24 PM