New Jersey Assembly Bill A4258

New Jersey 2022-2023 Regular Session

• Introduced: 6/13/22
• Refer: 6/13/22

Caption

Establishes Veteran-Owned Business Contract Financing Loan Program in EDA to help certain veteran-owned businesses perform public contracts; appropriates $5 million.

Impact

To facilitate the operations of this loan program, the bill appropriates $5 million from the General Fund into a non-lapsing revolving loan fund, specifically designated to support the loan program. Individual loans issued under this program will not exceed $500,000 and will be secured through the assignment of contract payments back to the EDA. This funding is expected to enhance the capacity of veteran-owned businesses to engage in public contracting, thereby fostering economic development within the state.

Summary

Assembly Bill A4258 establishes the 'Veteran-Owned Business Contract Financing Loan Program' within the New Jersey Economic Development Authority (EDA). The primary objective of this program is to provide financial assistance in the form of low-interest loans to veteran-owned businesses that have secured public contracts but lack the necessary financial resources to fulfill these contracts. This initiative is particularly targeted at service-disabled veteran-owned businesses which will be given preference in loan applications.

Contention

One notable aspect of A4258 is the method by which the EDA will approve loan applications. The authority can grant loans on a rolling basis, contingent upon the availability of funds, which raises concerns about the equity of access and whether all eligible veteran-owned businesses will have equal opportunities to secure funding. Additionally, the preference for service-disabled veteran-owned businesses, while beneficial for those applicants, could lead to debates regarding the balance of support among all veteran-owned businesses.