New Jersey Senate Bill S1159

New Jersey 2022-2023 Regular Session

• Introduced: 1/31/22
• Refer: 1/31/22

Caption

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

Impact

If enacted, S1159 would amend existing laws governing small business loans to ensure that not-for-profit corporations are included as eligible recipients. This expansion signifies a recognition of the role that these entities play in the state’s economic landscape, especially during emergencies. Critics might view this amendment as an additional strain on public resources; however, supporters assert that it would stimulate economic recovery by providing financial assistance to a broader range of businesses in need.

Summary

Bill S1159 seeks to expand a small business loan program administered by the New Jersey Economic Development Authority (EDA). The primary objective is to provide low-interest loans to qualified small businesses and not-for-profit corporations during a state of emergency declared by the Governor. The bill defines eligible businesses and outlines the purposes for which these loans can be utilized, such as covering operating expenses directly tied to the crisis brought about by the Coronavirus disease of 2019.

Contention

Notably, the legislation is likely to have discussions surrounding the financial implications for the state's economy and existing programs. Some may argue that providing low-interest loans during state emergencies could lead to unnecessary financial burdens on future budgets. Conversely, proponents will emphasize the crucial support these loans provide in maintaining employment and operational continuity for small entities critical to local economies. Thus, the Legislature may face a balancing act between ensuring financial support and maintaining fiscal responsibility.