New Jersey Assembly Bill A2168

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

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

Impact

The proposed program aims to boost economic development among veteran-owned businesses, particularly those classified as service-disabled veteran-owned enterprises. By offering low-interest loans that can reach up to $500,000, the bill is designed to provide financial support for expenses related to public contracts such as purchasing equipment and covering operational costs. This initiative demonstrates an effort to enhance local economies by empowering veteran entrepreneurs and ensuring they have the necessary resources to fulfill public contracts.

Summary

Assembly Bill A2168 establishes the Veteran-Owned Business Contract Financing Loan Program in New Jersey, which is designed to assist veteran-owned businesses in meeting the financial requirements to perform on public contracts. This legislation appropriates $5 million from the General Fund to create a non-lapsing revolving loan fund, named the Veteran-Owned Business Contract Financing Loan Fund. The New Jersey Economic Development Authority (EDA) will administer this program and is responsible for approving loan applications from veteran-owned businesses that have already secured public contracts but lack sufficient working capital.

Contention

While the bill has a clear objective to support veteran-owned businesses, concerns could arise regarding the allocation of state funds and the prioritization of loans for service-disabled veteran-owned businesses. Some legislators and stakeholders may question whether this focus adequately addresses the broader needs of all veteran-owned businesses without service-connected disabilities. Additionally, the rolling application process and the prioritization of funding might lead to disparities among applicants, sparking discussions about fairness and accessibility in obtaining these loans.