NY A05578

Establishes the Small Business Environmental Fund within the New York State Urban Development Corporation to provide loan loss reserves and credit enhancement for small business pollution prevention and environmental compliance loans from financial institutions.

Authorizes the Corporation to guarantee up to 90 percent of outstanding principal on loans up to $500,000 made by financial institutions to small businesses for pollution prevention or compliance activities.

Requires the Corporation to approve or reject loan applications within 28 days based on criteria including whether activities achieve pollution prevention, the need for financing, and prohibition on concurrent loans under the program.

Gives preference in loan approvals to small businesses in highly distressed areas, minority-owned and women-owned enterprises seeking to comply with federal clean air laws, water pollution control, and hazardous waste management requirements.

Mandates annual reporting to the Governor and Legislature on loan numbers, amounts, and claims paid, with biennial independent evaluations assessing the fund's effectiveness in achieving pollution prevention and environmental compliance.