Requires EDA to establish program providing grants to certain entertainment businesses; appropriates not less than $5 million.
The bill defines eligible 'qualified entertainment businesses' as those impacted by forced closures from April 1, 2020, experiencing at least a 50% reduction in gross revenue compared to the same quarter in the previous year. Grant amounts will vary based on the size and indoor capacity of the business, with limits specified: a maximum of $750,000 for the largest indoor operations and progressively lower amounts for smaller venues. This structured financial support recognizes the unique challenges the entertainment industry faced during the pandemic and represents a targeted effort to stimulate recovery in this sector.
Bill S2954, titled the 'New Jersey Pandemic Entertainment Grant Program,' mandates the New Jersey Economic Development Authority (EDA) to establish a program that provides grants to certain entertainment businesses that suffered significant revenue losses due to COVID-19 restrictions. The bill stipulates that a total of not less than $5 million will be appropriated from the General Fund to support this grant program. The initiative aims to assist entertainment businesses that were mandated to close or limit operations due to public health emergency measures in place during the pandemic.
While the bill's provisions are generally welcomed in light of the entertainment industry's struggles, there may be contention regarding the parameters for qualifying businesses. Notably, businesses that received aid from other federal assistance programs are excluded from eligibility for these grants. This exclusion has the potential to elicit concerns from various stakeholders who may argue that it unfairly limits support options for certain businesses that may still face hardships despite receiving previous funding.
The EDA is tasked with creating necessary administrative procedures for applications, approvals, and distribution of funds. These processes must be established within a defined timeline and will include specific reporting requirements for businesses that benefit from the program. Furthermore, the EDA possesses emergency regulatory authority to swiftly adopt implementation rules for up to one year, ensuring prompt assistance to eligible businesses as they navigate recovery.