New Jersey Senate Bill S1881

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/22
• Refer: 2/28/22

Caption

Establishes "Build Back Better Fund" in EDA for certain manufacturing business assistance; creates and funds two business assistance programs in New Jersey Redevelopment Authority; appropriates $165 million.

Impact

Additionally, S1881 sets up the 'Small Business Lease Emergency Assistance Program' and the 'Small Business Reimbursement Program' via the New Jersey Redevelopment Authority (NJRA) with total appropriations of $37.5 million and $45 million respectively. These programs intend to alleviate the financial stress faced by small businesses negatively impacted by the COVID-19 pandemic by providing grants to cover rent and reimburse operational expenses incurred during the height of the pandemic. Notably, the leeway for these programs ends on December 31, 2024, compelling businesses to act promptly to access these funds.

Summary

S1881 establishes the 'Build Back Better Fund' within the New Jersey Economic Development Authority (NJEDA) aimed at assisting certain manufacturing businesses advancing in targeted industry sectors. This bill emphasizes economic growth through financial support provided in the form of grants, loans, or guarantees specifically for startups and firms involved in manufacturing high-capacity batteries, semiconductors, robotics, and medical technology. The NJEDA will manage this fund, supported by an appropriation of $82.5 million from the General Fund, creating avenues for businesses with less than 250 employees to benefit from this initiative.

Contention

The discussion surrounding S1881 has highlighted concerns over the allocation of public funds during a challenging economic period. Supporters advocate for the bill as a necessary measure to support local businesses and stimulate recovery in key sectors, while opponents argue the potential misuse of funds and efficacy of aid to genuinely impacted businesses. There is also an apprehension about dependency on such programs by businesses that should ideally be bolstered through robust economic strategies rather than sporadic financial bailouts.