Bill Text: NJ S1623 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes Small Business Resiliency Project Loan Program in EDA for certain small businesses implementing certain resiliency projects.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced) 2024-01-09 - Introduced in the Senate, Referred to Senate Economic Growth Committee [S1623 Detail]
Download: New_Jersey-2024-S1623-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator ANDREW ZWICKER
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
Co-Sponsored by:
Senators A.M.Bucco and Singleton
SYNOPSIS
Establishes Small Business Resiliency Project Loan Program in EDA for certain small businesses implementing certain resiliency projects.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act establishing the Small Business Resiliency Project Loan Program for certain small businesses implementing certain resiliency projects 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 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).
"Department" means the Department of Environmental Protection.
"Fund" or "revolving loan fund" means the "Small Business Resiliency Project Loan Fund" established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Program" means the Small Business Resiliency Project Loan Program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Qualified business" means a business that:
a. is registered to do business in this State with the Director of the Division of Revenue and Enterprise Services in the Department of the Treasury;
b. intends to maintain its principal business operations in the State after receiving assistance from the authority under the program; and
c. employs not more than 50 full-time employees at the time of approval of financial assistance to the business.
"Resiliency project" means projects or activities, which may include, but not be limited to, projects or activities that improve or support the treatment or management of drinking water, wastewater, and storm water; enhance the reliability and resiliency of the electrical grid and public utility infrastructure; expand access to broadband internet; or utilize technology, infrastructure improvements, and other materials that mitigate against or protect the business in the event of climate change-related natural hazards, including, but not limited to, increased temperatures, drought, flooding, hurricanes, and sea-level rise.
2. a. The New Jersey Economic Development Authority shall establish and maintain the Small Business Resiliency Project Loan Program for the purpose of providing financial assistance from the Small Business Resiliency Project Loan Fund, established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), to qualified businesses that are engaging in or have completed resiliency projects to mitigate the risk of future storm damage and improve environmental resiliency against climate change-related natural hazards.
b. Under the program, the authority shall provide financial assistance in the form of low-interest loans for qualified businesses that are engaging in or have completed resiliency projects, with priority consideration, as determined by the authority in consultation with the Department of Environmental Protection, given to a qualified business based on the long-term impact of the qualified business on the State economy, the type of resiliency project, and whether the principal business operations of the qualified business are located in a municipality of the State that has incorporated a climate change-related hazard vulnerability assessment into the land use plan element of the municipality's master plan.
c. A qualified business that seeks assistance under the loan program shall submit an application to the authority in a form and manner prescribed by the authority. In addition to any other information that the authority may deem appropriate, the application shall require the qualified business applicant to submit:
(1) proof that it is a qualified business engaging in or has completed a resiliency project, as defined in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill); and
(2) an outline of the anticipated use of loan proceeds.
d. The authority may approve applications for the loan program on a rolling basis or on one or more dates set by the authority, subject to the availability of funds in the revolving loan fund. Upon approval of an application, the authority shall enter into a loan agreement with the qualified business and provide a low-interest loan to the qualified business. Each loan issued under the program shall bear interest at rates lower than and provide more flexible repayment terms than are customarily made available through conventional business loans issued by private lenders.
e. A qualified business
that receives financial assistance under the loan program shall submit an
annual report to the authority until such time as the full balance of the loan
has been repaid to the authority. The annual report shall be submitted in a
form and manner prescribed by the authority. At a minimum, the annual report
shall include information outlining the expenses supported by the loan and the
financial information of the qualified business, audited by a certified public
accountant, which shall include a consolidated summary of the performance of
the qualified business. Any information about the performance of a qualified
business shall be considered confidential and not subject to P.L.1963, c.73
(C.47:1A-1 et seq.), known commonly as the open public records act, or
P.L.2001, c.404 (C.47:1A-5 et al.).
3. a. The authority shall establish and maintain a dedicated, non-lapsing fund to be known as the Small Business Resiliency Project Loan Fund. The authority may credit the fund with any monies received from State, federal, or private sources and may use those funds to provide financial assistance to qualified businesses in a manner consistent with federal law or the private source of funds.
b. All loans provided under section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be issued from monies held in the revolving loan fund. All monies received by the authority from the repayment of a loan provided under section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be deposited into the revolving loan fund.
c. Any interest collected from loans provided under section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) may be used by the authority to offset the costs of the administration of the loan program, or shall otherwise be deposited in the revolving loan fund.
4. Notwithstanding any provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), or any other law to the contrary, the authority may adopt, immediately upon filing with the Office of Administrative Law and no later than the 90th day after the effective date of this act, such rules and regulations as the authority deems necessary to implement the provisions of this act, which regulations shall be effective for a period not to exceed 12 months. The regulations shall, at a minimum, set forth the requirements for application submissions, the criteria for application selections, and the permitted uses of loan proceeds. The regulations shall thereafter be amended, adopted, or readopted by the authority in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
5. This act shall take effect immediately.
STATEMENT
This bill requires the New Jersey Economic Development Authority (EDA) to establish and maintain the Small Business Resiliency Project Loan Program (program) and Small Business Resiliency Project Loan Fund (fund).
Loan Program Eligibility
The EDA is to provide financial assistance in the form of low-interest loans to qualified businesses that are engaging in or have completed resiliency projects. Under the bill, a qualified business is a business that:
1) is registered to do business in New Jersey with the Director of the Division of Revenue and Enterprise Services in the Department of the Treasury;
2) intends to maintain its principal business operations in the State after receiving assistance from the EDA under the program; and
3) employs not more than 50 full-time employees at the time of approval of financial assistance to the business.
Under the bill, a resiliency project means those projects or activities, which may include, but are not limited to, projects or activities that improve or support the treatment or management of drinking water, wastewater, and storm water; enhance the reliability and resiliency of the electrical grid and public utility infrastructure; expand access to broadband internet; or utilize technology, infrastructure improvements, and other materials that mitigate against or protect the business in the event of climate change-related natural hazards, including, but not limited to, increased temperatures, drought, flooding, hurricanes, and sea-level rise.
Application Criteria
The bill requires the EDA to establish an application process. A qualified business that seeks assistance under the loan program is required to submit an application to the EDA in a form and manner prescribed by the EDA. In addition to any other information that the EDA may deem appropriate, the application is required to request an applicant to submit information demonstrating that the applicant meets the eligibility requirements and an outline of the anticipated use of loan proceeds.
Under the bill, the EDA is required to approve applications for the loan program on a rolling basis or on one or more dates, subject to the availability of funds.
Loan Awards and Loan Requirements
Under the program, the EDA is to provide financial assistance in the form of low-interest loans for qualified businesses that are engaging in or have completed resiliency projects, with priority consideration, as determined by the EDA in consultation with the Department of Environmental Protection, given to a qualified business based the long-term impact of the qualified business on the State economy, the type of resiliency project, and whether the principal business operations of the qualified business are located in a municipality of the State that has incorporated a climate change-related hazard vulnerability assessment into the land use plan element of the municipality's master plan.
Upon approval of an application, the EDA is required to enter into a loan agreement with the qualified business and provide a low-interest loan to the qualified business. Each loan issued under the program is required to bear interest at rates lower than and provide more flexible repayment terms than are customarily made available through conventional business loans issued by private lenders.
A qualified business that receives financial assistance under the loan program is to annually report to the EDA until such time as the full balance of the loan has been repaid to the EDA. At a minimum, the annual report is to include information outlining the expenses supported by the loan and the financial information of the qualified business, audited by a certified public accountant, which is to include a consolidated summary of the performance of the qualified business.
Any information about the performance of a qualified business is considered confidential and not subject to the law known commonly as the open public records act.
Loan Fund
Any monies received by the EDA for the repayment of a loan issued pursuant to the program would be deposited into the non-lapsing revolving loan fund. Any interest collected from loans provided by the loan program may be used by the EDA to offset the costs of the administration of the loan program, or otherwise are required to be deposited into the fund.
The EDA may also credit the fund with monies received from State, federal, or private sources and may use those funds to provide financial assistance to qualified businesses in a manner consistent with federal law or the private source of funds.
