New Jersey Senate Bill S2408

New Jersey 2022-2023 Regular Session

• Introduced: 3/24/22
• Refer: 3/24/22

Caption

Establishes Main Street Assistance Program to encourage business development in small municipalities.

Summary

Senate Bill S2408, known as the 'Main Street Assistance Act,' aims to establish a program to bolster business development in small municipalities in New Jersey. The legislation recognizes that many such municipalities face significant barriers in fostering job creation and economic growth, often lacking eligibility for existing municipal and business assistance programs. The Main Street Assistance Program will focus on supporting area businesses through various forms of financial and technical assistance, allowing for greater economic dynamism within commercial zones of smaller towns. The bill empowers local governing bodies to designate specific 'Main Street areas' within small municipalities, facilitating tailored economic initiatives based on local needs. A critical eligibility criterion requires that area businesses must have at least 15 percent of their full-time employees residing within the small municipality to participate in the program. This aspect aims to enhance local employment and community engagement while fostering local business growth. In terms of financial incentives, the bill proposes corporation business tax credits and gross income tax credits of 15 percent for employee compensation expenses. The establishment of the 'Main Street Assistance Fund' will underpin the program's funding through loans and technical assistance grants. The New Jersey Economic Development Authority (EDA) is tasked with overseeing this fund and ensuring proper implementation of the program's principles. The anticipated impact of SB S2408 includes improved economic vitality in small municipalities, enabling these areas to develop their business environments in ways that address unique local challenges. However, some may raise concerns over the adequacy of funding and resources available for the program. The effective administration of assistance and periodic reporting on its outcomes will be essential to evaluate its success and areas for improvement in the future.