NY A07797

Establishes a 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 loan interest rate reductions for energy efficiency projects.

Limits eligibility to small businesses (100 or fewer employees, independently owned and operated, 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 eligible improvements including pre-qualified cost-effective measures, custom measures with 10-year payback periods, process improvements, and renewable energy technologies using solar, wind, water, or geothermal sources.

Allows the Corporation to buy down participating lenders' interest rates by up to 400 basis points (4 percent) for the lesser of 10 years or the life of the loan through participating banks, credit unions, community development financial institutions, and farm credit associations.

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