New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A4351

Introduced
5/10/24  

Caption

Requires EDA to provide loans through small business loan program at lower interest rates, with more flexible repayment terms if issued to small businesses owned or controlled by certain veterans, and prohibit certain fees.

Impact

The implementation of A4351 is designed to bolster economic opportunities for veteran entrepreneurs, providing a structured pathway for accessing financial resources that might otherwise be inaccessible due to high costs and inflexible traditional lending practices. By lowering the barrier of entry for veteran-owned businesses in New Jersey, there is a strong potential for job creation and increased economic activity within communities that support veterans and their families. However, this could lead to concerns from non-veteran small business owners about equity and fairness in loan distribution from the EDA.

Summary

Assembly Bill A4351, introduced in May 2024, aims to enhance support for small businesses owned or controlled by veterans in New Jersey. This bill mandates the New Jersey Economic Development Authority (EDA) to administer existing small business loans with adjusted terms specifically favoring eligible veteran-owned businesses. The key provisions include providing loans at lower interest rates and allowing more flexible repayment terms. The bill particularly seeks to benefit those businesses with over 50% of their workforce being veterans, potentially offering loans at a zero percent interest rate for veteran-owned businesses that qualify according to guidelines defined by associated veterans' organizations.

Contention

Notable points of contention surrounding A4351 involve discussions on whether preferential treatment for veteran-owned businesses might detract from available resources for other small enterprises. Critics argue that while assisting veterans is essential, it may unintentionally disadvantage non-veteran minority-owned and small businesses who also face significant challenges. Stakeholders express the need for a balanced approach that ensures all small businesses have equitable access to support without compromising focused assistance to those who served in the military.

Companion Bills

NJ S1341

Same As Requires EDA to provide loans through small business loan program at lower interest rates, with more flexible repayment terms if issued to small businesses owned or controlled by certain veterans, and prohibit certain fees.

NJ S848

Carry Over Requires EDA to provide loans through small business loan program at lower interest rates, with more flexible repayment terms if issued to small businesses owned or controlled by certain veterans, and prohibit certain fees.

Previously Filed As

NJ S848

Requires EDA to provide loans through small business loan program at lower interest rates, with more flexible repayment terms if issued to small businesses owned or controlled by certain veterans, and prohibit certain fees.

NJ S1341

Requires EDA to provide loans through small business loan program at lower interest rates, with more flexible repayment terms if issued to small businesses owned or controlled by certain veterans, and prohibit certain fees.

NJ A3917

Requires EDA administer small business loan program to provide loans to small businesses owned or controlled by certain veterans.

NJ S3434

Requires EDA administer small business loan program to provide loans to small businesses owned or controlled by certain veterans.

NJ S873

Requires EDA administer small business loan program to provide loans to small businesses owned or controlled by certain veterans.

NJ A131

Requires EDA administer small business loan program to provide loans to small businesses owned or controlled by certain veterans.

NJ S1159

Requires EDA to provide low interest loans to qualified small businesses and not-for-profit corporations during state of emergency declared by Governor.

NJ S582

Expands EDA small business loan program to include certain broadband telecommunications service providers.

NJ S1327

Expands EDA small business loan program to include certain broadband telecommunications service providers.

NJ A3050

Expands EDA small business loan program to include certain broadband telecommunications service providers.

Similar Bills

CA AB1398

Workers’ compensation.

NJ S1341

Requires EDA to provide loans through small business loan program at lower interest rates, with more flexible repayment terms if issued to small businesses owned or controlled by certain veterans, and prohibit certain fees.

NJ S848

Requires EDA to provide loans through small business loan program at lower interest rates, with more flexible repayment terms if issued to small businesses owned or controlled by certain veterans, and prohibit certain fees.

CA AB590

State-funded assistance grants and contracts: advance payments.

CA AB1400

Public Interest Research, Development, and Demonstration Program and Electric Program Investment Charge program: microgrid projects: diesel backup generators.

CA AB1587

Invasive species: dreissenid mussels.

AZ HB2057

Water supply development fund; revisions

CA AB964

Economic development: Capital Access Loan Program: California Affordable Clean Vehicle Program.