NY A02587

Establishes the Small Business Energy Loan Fund administered by the New York State Urban Development Corporation with assistance from the New York State Energy Research and Development Authority to provide zero or low interest loans and interest rate reductions for energy efficiency projects.

Limits eligibility to small businesses (100 or fewer employees, independently owned, headquartered and operating in New York State) located in economically distressed areas that have completed an energy audit through the Authority's program.

Authorizes loans up to $100,000 for energy efficiency improvements including pre-qualified cost-effective measures, custom measures payable within ten years, manufacturing process improvements, and renewable energy technologies using sun, wind, water, or ground sources.

Permits the Corporation to buy down participating lenders' interest rates by up to 400 basis points (4 percent) for the lesser of ten years or the life of the loan for businesses receiving loan commitments from banks, credit unions, community development financial institutions, or farm credit associations.

Requires annual reporting to the Assembly Speaker and Senate President on the number of businesses assisted, types of improvements implemented, and energy cost savings achieved through the program.