Assemblyman Al Stirpe (D-Cicero) announced that legislation he sponsored allowing industrial development agencies to issue short-term loans to small businesses was signed into law (Ch. 109 of 2020). His bill, which was sponsored in the senate by Sen. Rachel May (D-Syracuse), was part of a comprehensive legislative package that provides expanded relief for New Yorkers during the ongoing COVID-19 pandemic.

“These unprecedented times have brought a cloud of uncertainty about the future for many of us, but especially for local entrepreneurs,” said Stirpe. “After hearing the concerns of small business owners across the state, I crafted this legislation to help these hardworking men and women survive this health emergency and bring much-needed financial relief throughout the re-opening process. As we begin down the path of recovery, I’ll continue working with my Assembly colleagues to support New York small businesses.”

The law implements a disaster emergency loan program that allows local IDAs to provide up to $25,000 loans to small businesses and not-for-profit organizations during a declared state of emergency. It also allows IDAs to offer grants and in-kind donations to these organizations to purchase personal protective equipment and other fixtures designed to prevent the spread of COVID-19. This program comes at no additional cost to the state, as the funding will come from monies already held by IDAs but previously restricted by state law from providing such loans and grants to small businesses and not-for-profit organizations.

The change in law was supported by the New York State Economic Development Council, the New York State Association of Counties, the NFIB, Centerstate CEO, and a host of other state and local organizations.

By martha

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