S2769

An Act concerning assistance to certain minority-owned businesses and supplementing P.L.1974, c.80 (C.34:1B-1 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in sections 1 and 2 of P.L. , c. (C. ) (pending before the Legislature as this bill):

“Authority” means the New Jersey Economic Development Authority established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4).

“Business Action Center” means the Business Action Center established in the Department of State pursuant to Reorganization Plan No. 003-2011.

“Chief Diversity Officer” means the position established in the Division of Purchase and Property in the State Department of the Treasury pursuant to section 1 of P.L.2017, c.95 (C.52:32-18.1).

“Community development financial institution” or “financial institution” shall have the same meaning as provided in 12 U.S.C. s.4702.

“Development Fund” means the “Minority Business Development Fund” established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

“Minority business” means a small business:

a. having its principal place of business in the State;

b. that is independently owned and operated; and

c. where at least 51 percent of the business is owned and controlled by a person who is black, Hispanic, Portuguese, Asian-American, American Indian, or an Alaskan native.

“Program” means the “Minority Business Development Program” established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).

“Small business” means a business engaged in the conduct of a trade or business in this State that qualifies as a “small business concern” within the meaning of the federal "Small Business Act," Pub.L.85-536 (15 U.S.C. s.631 et seq.) for the purpose of the small business’s eligibility for performing a contract offered by the federal government or for assistance from the United States Small Business Administration. “Small business” shall include, but not be limited to, a small business established and operating in this State that is certified, pursuant to federal law, under the United States Small Business Administration’s 8(a) Business Development program or the HUBZone program, or as a small disadvantaged business, or as a business concern by the United States Department of Housing and Urban Development pursuant to section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. s.1701u).

“Technical assistance” means assistance in the development or promotion of a minority business under the terms and conditions established by the authority, pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), and may include, but not be limited to, business conferences, workshops, and strategic consulting sessions.

2. a. (1) The New Jersey Economic Development Authority, in consultation with the Business Action Center and the Chief Diversity Officer, shall establish and maintain a program to be known as the “Minority Business Development Program” to provide grant funding, other financial assistance, and technical assistance services to foster the development of minority businesses.

(2) The authority shall enter into an agreement with a Community Development Financial Institution concerning the financial institution's provision of grant funding, other financial assistance, and technical assistance services to foster the development or promotion of minority businesses. The grant funding, other financial assistance, and technical assistance to a minority business shall focus on improving a minority business’s financial presentation, operational efficiency, and profitability.

b. The authority shall establish the terms and conditions by which a minority business may apply for participation in the program.

3. a. The authority shall establish and maintain within the program a special, non-lapsing, revolving fund to be known as the “Minority Business Development Fund” to provide grant funding to a minority business that participates in the program, to provide grant funding to a financial institution that provides a minority business participating in the program with grant funding, other financial assistance and technical assistance, and to administer the program.

b. The development fund shall be credited with $50,000,000 from an appropriation made to the authority pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill). The development fund may be credited with moneys made available by the authority for the purpose of the development fund and moneys received by the authority from any other public or private donations. The authority is authorized to seek and accept gifts, grants, or donations from private or public sources for deposit in the development fund, except that the authority may not accept a gift, grant, or donation that is subject to conditions that are inconsistent with any other law of this State.

4. a. In administering the program and the development fund, the authority shall establish:

(1) procedures and timelines for applications for the program;

(2) criteria for determining grant funding, other financial assistance, or technical assistance to be disbursed from the development fund to a minority business and financial institution;

(3) reporting requirements for minority businesses and financial institutions accepted into the program and receive grant funding, other financial assistance, or technical assistance from the development fund; and

(4) any other policies deemed necessary by the authority for the administration of the program and the development fund. The authority, in its sole discretion, may amend these policies at any time if the policies are established or amended in a manner consistent with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. The reporting requirements established pursuant to paragraph (3) of subsection a. of this section shall require a minority business and financial institution receiving grant funding, other financial assistance, or technical assistance under the program to report to the authority every six months while the recipient participates in the program detailing how the recipient used grant funding, other financial assistance, or technical assistance, and any other information the authority requires in a form and manner determined by the authority.

5. There is appropriated from the General Fund to the New Jersey Economic Development Authority the sum of $50,000,000 from a portion of those federal block grant funds allocated to the State from the federal “Coronavirus Relief Fund,” established pursuant to the federal Coronavirus Aid, Relief, and Economic Security Act,” Pub.L.116-136, for use by the authority to provide grant funding, other financial assistance, or technical assistance to minority businesses that participate in the program established under P.L. , c. (C. ) (pending before the Legislature as this bill), to provide grant funding to financial institutions that provide minority businesses participating in that program with grant funding, other financial assistance and technical assistance, and to administer that program.

6. This act shall take effect immediately.

STATEMENT

This bill requires the New Jersey Economic Development Authority (EDA) to establish and maintain a program to be known as the “Minority Business Development Program” (program) to provide grant funding, other financial assistance, and technical assistance services to foster the development of minority businesses. Under the bill, the EDA is to enter into an agreement with a federally-designated “community development financial institution” (financial institution) concerning the financial institution’s provision of grant funding, other financial assistance, and technical assistance services to foster the development or promotion of minority businesses. The grant funding, other financial assistance, and technical assistance to a minority business is to focus on improving a minority business’s financial presentation, operational efficiency, and profitability.

The EDA is to establish and maintain the “Minority Business Development Fund” (development fund) to provide grant funding, other financial assistance, and technical assistance to a minority business that participates in the program, to provide grant funding to a financial institution that provides a minority business participating in the program with grant funding, other financial assistance and technical assistance, and to administer the program. The development fund is to be credited with $50,000,000 from an appropriation made to the authority. The development fund may be credited with moneys made available by the EDA for the purpose of the development fund and moneys received by the authority from any other public or private donations.

In administering the program, the EDA is to establish:

1) procedures and timelines for applications for the program;

2) criteria for determining grant funding amounts to be disbursed from the development fund to a minority business and financial institution;

3) reporting requirements for minority businesses and financial institutions accepted into the program and receive grant funding from the development fund; and

4) any other policies deemed necessary by the EDA for the administration of the program and the development fund.

A minority business and financial institution receiving grant funding under the program is to report to the EDA every six months while the recipient participates in the program detailing how the recipient used grant funding, other financial assistance, or technical assistance, and any other information the EDA requires.