NY A07518

Establishes the Small Business Environmental Fund under the New York Urban Development Corporation to provide loan loss reserves and credit enhancements for small businesses obtaining financing for pollution prevention and environmental compliance activities.

Allows the Corporation to guarantee up to 90 percent of outstanding loan principal for pollution prevention or compliance loans made by financial institutions to small businesses, with individual loans capped at $500,000.

Requires small business applicants to demonstrate difficulty obtaining conventional bank financing and submit a simplified application; the Corporation must approve or reject applications within 28 days based on specified criteria.

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 Act, state clean air requirements, water pollution control, or hazardous waste management laws.

Requires the Corporation to submit annual reports to the Governor and Legislature on loan activity and biennial independent evaluations of the fund's effectiveness, and mandates marketing of the program in cooperation with financial institutions, trade associations, and economic development agencies.