Sponsored by:
Senator DAWN MARIE ADDIEGO
District 8 (Atlantic, Burlington and Camden)
Senator STEPHEN M. SWEENEY
District 3 (Cumberland, Gloucester and Salem)
Senator VIN GOPAL
District 11 (Monmouth)
Senator DECLAN J. O'SCANLON, JR.
District 13 (Monmouth)
Senator MICHAEL L. TESTA, JR.
District 1 (Atlantic, Cape May and Cumberland)
Senator THOMAS H. KEAN, JR.
District 21 (Morris, Somerset and Union)
Co-Sponsored by:
Senators Holzapfel, Corrado, Oroho, Pennacchio, Singer, A.M.Bucco, Bateman, Doherty, Thompson, Connors, Singleton and Pou
SYNOPSIS
Appropriates $300 million to EDA for small business and not-for-profit corporation assistance to preserve and create jobs, spur economic growth, and preserve the viability and vitality of communities.
CURRENT VERSION OF TEXT
As introduced.
An Act allocating funding to the New Jersey Economic Development Authority for certain small business and not-for-profit corporation assistance, and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The Legislature finds and declares that:
(1) The negative effects of the coronavirus disease 2019 pandemic (COVID-19) have resulted in thousands of established small businesses and (501)(c)(3) not-for-profit associations, corporations, and organizations (nonprofits) suspending their operations or scaling back their ability to serve customers and remain viable, and led to some closing permanently;
(2) COVID-19 has significantly disrupted the otherwise previously viable plans of small businesses and nonprofits that had only recently opened, or had planned to open, early in 2020;
(3) The impact of COVID-19 has resulted not only in hardships for small businesses and nonprofits, but has affected the viability and vitality of “main streets” and other locales where small businesses and nonprofits serve customers, meet community needs, and create “livable communities”;
(4) Prior State and federal governmental programs providing assistance to small business and nonprofits proved to be of only limited value due to overly restrictive program eligibility requirements and caps on the amount of financial assistance provided under these programs;
(5) Small businesses and nonprofits seeking to reopen, ramp up, or resume full operations will face a difficult and uncertain economic climate as the State slowly recovers from the economic, fiscal, and healthcare impact of COVID-19; and
(6) There will be significant additional closures of small businesses and nonprofits leading to further job losses, reduced economic activity, fewer services, and the deterioration of “main streets” and “livable communities” without significant additional assistance provided to small businesses and nonprofits.
b. The Legislature therefore determines that an appropriation of $300 million to the New Jersey Economic Development Authority will allow the authority’s grant, loan, and loan guarantee programs to meet the unmet Statewide needs of small businesses and nonprofits in order to preserve and create jobs, spur economic activity, provide services, and have a positive effect on the viability and vitality of “main streets” and other locales where small businesses and nonprofits serve customers, meet community needs, and create “livable communities.”
2. There is appropriated from the General Fund, to the New Jersey Economic Development Authority the sum of $300 million for use by the authority to provide financial support, such as loans, loan guarantees, and grants, to small businesses and (501)(c)(3) not-for-profit organizations whose revenues or budgets were significantly impacted by the COVID-19 pandemic, and to small businesses and (501)(c)(3) not-for-profit organizations that preserve or create jobs, provide needed services, preserve or revitalize communities, or fill vacant storefronts or occupy under-utilized space.
3. When expanding existing or creating new authority assistance programs with the funds appropriated pursuant to section 2 of this act, the authority shall do so with a sense of urgency to prevent additional small business and nonprofit organization closures, to preserve and create jobs, and to spur economic recovery. Among other assistance program provisions that the authority may adopt, the authority shall adopt provisions providing for:
a. the availability of program assistance Statewide;
b. eligibility for small businesses and nonprofit organizations that employed no more than 50 full-time employees in the previous three months and have lost revenue due to the COVID-19 pandemic;
c. eligibility for new or existing small businesses and nonprofit organizations that preserve or create jobs, preserve or revitalize communities, provide needed services, or fill vacant stores or occupy under-utilized space;
d. sufficiently higher caps on maximum grant or loan support to make the assistance meaningful for applicants;
e. the simplicity of applications with rolling application periods and adequate application submission deadlines;
f. the ability and resources of the authority to promptly review and approve applications and expend funds in those instances where awards are made;
g. reasonable flexibility in the use of grants or loans; and
h. an affirmative marketing and outreach effort by the authority to publicize assistance to small businesses and nonprofit organizations.
4. This act shall take effect immediately.
STATEMENT
This bill appropriates $300 million from the General Fund to the New Jersey Economic Development Authority (EDA) for use by the EDA to provide financial support, such as loans, loan guarantees, and grants, to small businesses and (501)(c)(3) not-for-profit organizations (nonprofits) whose revenues or budgets were significantly impacted by the COVID-19 pandemic, and to small businesses and nonprofits that preserve or create jobs, provide needed services, preserve or revitalize communities, or fill vacant stores or occupy under-utilized space.
The bill provides that, when expanding existing or creating new EDA assistance programs with the funds appropriated pursuant to the bill, the EDA is to do so with a sense of urgency to prevent additional small business and nonprofit closures. Among other assistance program provisions that the EDA may adopt, the EDA is to adopt provisions providing for:
1) the availability of program assistance Statewide;
2) eligibility for small businesses and nonprofit organizations that employed no more than 50 full-time employees on their payroll for the previous three months and have lost revenue due to the COVID-19 pandemic;
3) eligibility for new or existing small businesses and nonprofit organizations that preserve or create jobs, preserve or revitalize communities, provide needed services, or fill vacant stores or occupy under-utilized space;
4) higher caps on maximum grant or loan support to make the assistance meaningful for applicants;
5) the simplicity of applications with rolling application periods and adequate application submission deadlines;
6) the ability and resources of the EDA to promptly review and approve applications and expend funds in those instances where awards are made;
7) reasonable flexibility in the use of grants or loans; and
8) an affirmative marketing and outreach effort by the EDA to publicize assistance to small businesses and nonprofits.