NY A10212

Establishes a state of emergency loan guarantee program administered by the Department of Financial Services to guarantee repayment of loans made by banks and credit unions to small businesses and not-for-profit organizations with 50 or fewer employees during a declared state of emergency.

Limits loans to a maximum of $5,000 per affected business or organization, with borrowers eligible for up to three loans during the emergency period, with creditworthiness excluded as an eligibility factor.

Requires a 90-day grace period after the state of emergency ends with no repayment or interest charges during that period, followed by 180 additional days of no interest, after which standard interest and fees may apply; loans must be repaid in 3-6 equal installments within 180 days of the grace period ending.

Permits banks and credit unions to submit claims to the state for recovery of outstanding principal 180 days after the grace period ends if they demonstrate good-faith collection efforts; upon payment, the loan is assigned to the state for continued collection.

Terminates new loan approvals when payments honoring loan guarantees exceed 10 percent of total loans issued; program expires upon repayment of all loans or cessation of claim approvals.