NY A01196

Establishes the Small Business Environmental Compliance Fund to provide loan loss reserves and credit enhancement encouraging financial institutions to make pollution control equipment loans to small businesses.

Authorizes the fund to guarantee up to 90 percent of outstanding principal on loans not exceeding $500,000 for small businesses acquiring pollution control equipment to comply with federal Clean Air Act, New York Clean Air Compliance Act, and environmental conservation laws.

Requires simplified application procedures with 28-day approval timeline and gives preference to businesses in Empire Zones, highly distressed areas, and minority or women-owned enterprises seeking to comply with new environmental requirements.

Establishes loan terms of no more than 7 years or equipment useful life (whichever is less), with small businesses paying an origination fee deposited into the fund and participating financial institutions determining default using standard methods.

Requires annual reporting to legislature on loan volumes and outcomes by economic development region, and biennial independent evaluations of the fund's effectiveness in achieving small business environmental compliance.