N.Y. Urban Development Guarantee Fund of New York Law § 2
The legislature hereby finds that in certain urban areas of our state the growth of small business is impeded by the unavailability of reasonable credit for buildings, equipment, credit for inventory and working capital.
This unavailability of reasonable credit restricts business growth and job opportunities and causes business failures resulting in unemployment and underemployment with resulting persistent poverty in such urban areas. The amelioration of these conditions is a responsibility of both the public and private sector of our economy. Rehabilitation of the economic life of blighted areas is necessary in order to prevent business failures, to maintain the income of existing small business enterprises, to provide a business climate conducive to the growth of new small business enterprises, and to broaden the tax base of such urban areas, all to afford more meaningful and rewarding business and job opportunities for the residents of such areas, thereby reducing the hazards of unemployment and raising the job opportunities of the underemployed.
The legislature further finds that in certain urban areas of our state the construction, reconstruction, rehabilitation and improvement of housing accommodations is impeded by the shortage of mortgage funds at reasonable interest rates and the lack of available credit for the rehabilitation of older buildings which lack proper heating or sanitary facilities or which do not comply in full with modern building and maintenance code standards. The unaided efforts of private enterprise have not provided and cannot provide an adequate supply of safe and sanitary housing within the financial reach of many families in urban areas. The upgrading and improvement of such areas through programs of new construction, rehabilitation and home improvement can provide additional tax revenues to the community and assist in attracting and retaining business and industry.
In order to assist in the rehabilitation of these areas and give constructive attention to the welfare of the needy residents of these areas, the legislature finds and declares that the marshalling of public and private capital to make sufficient credit available at the lowest feasible interest rates to encourage the expansion of small business, to provide the incentives for the establishment of sound new small business enterprises and to promote the construction and rehabilitation of housing accommodations in such areas, will create new job opportunities, effectively reduce unemployment and strengthen the economic base of the community as a whole, thereby reducing the burdens of poverty and need.
This result can best be accomplished by a loan guarantee program to guarantee loans to small businesses and owners of housing accommodations, including one and two family homes and multiple dwellings, unable to obtain reasonable credit through conventional financial sources. The legislature further finds that the adoption of such a loan guarantee program to mitigate the economic and social evils of unemployment, underemployment and inadequate housing is for a public purpose, and to achieve these ends there should be created a non-profit corporation to be known as the urban development guarantee fund of New York, having such powers and duties as set forth herein.
N.Y. Urban Development Guarantee Fund of New York § 2