Prohibits awarding of economic development subsidy to business if payment of principal and interest on previously awarded loan or loan guarantee is greater than 24 months overdue.
Impact
The proposed legislation seeks to tighten the policies regulating the awarding of subsidies, ensuring that businesses in default on existing debts are not rewarded with additional financial support. This will potentially impact a range of businesses that are currently benefiting from state economic development programs while owing payments on prior loans. By mandating that past due amounts be cleared before any new subsidies are granted, the bill aims to promote responsible fiscal behavior among businesses that engage with state programs.
Summary
A2629 is a bill that intends to amend existing economic development laws in New Jersey by establishing stricter conditions under which state public bodies can award financial subsidies to businesses. Specifically, the bill prohibits these public bodies from awarding economic development subsidies if the recipient business has outstanding payments of principal and interest on any prior loans or loan guarantees that are more than 24 months overdue. This change aims to enforce accountability among businesses that receive state funding and to ensure that these funds are used effectively to stimulate economic development.
Contention
There may be potential debate surrounding the implications of A2629. On one hand, proponents argue that this bill is necessary to ensure that taxpayer dollars are not being allocated to entities that have shown a lack of financial responsibility. Opponents, however, may argue that such strict measures could hinder the ability of struggling businesses to recover and thrive, particularly in times of economic downturn when support is most crucial. The bill will necessitate a conversation about the balance between accountability and support for economic growth within the state.
Carry Over
Prohibits awarding of economic development subsidy to business if payment of principal and interest on previously awarded loan or loan guarantee is greater than 24 months overdue.
NJ S2327
Carry Over
Prohibits awarding of economic development subsidy to business if payment of principal and interest on previously awarded loan or loan guarantee is greater than 24 months overdue.
Prohibits awarding of economic development subsidy to business if payment of principal and interest on previously awarded loan or loan guarantee is greater than 24 months overdue.
Prohibits awarding of economic development subsidy to business if payment of principal and interest on previously awarded loan or loan guarantee is greater than 24 months overdue.
Requires EDA to provide loans through small business loan program at lower interest rates, with more flexible repayment terms if issued to small businesses owned or controlled by certain veterans, and prohibit certain fees.
Provides that disability-owned businesses be included in certain businesses development programs, direct loan programs, and certification processes; requires Chief Diversity Officer compile information on awarding of State contracts to disability-owned businesses.
Provides that disability-owned businesses be included in certain businesses development programs, direct loan programs, and certification processes; requires Chief Diversity Officer compile information on awarding of State contracts to disability-owned businesses.
Requires EDA to provide loans through small business loan program at lower interest rates, with more flexible repayment terms if issued to small businesses owned or controlled by certain veterans, and prohibit certain fees.
Requires EDA to provide loans through small business loan program at lower interest rates, with more flexible repayment terms if issued to small businesses owned or controlled by certain veterans, and prohibit certain fees.
Enacts the "food retail establishment subsidization for healthy communities act" (FRESH Communities); provides loans, loan guarantees, interest subsidies and grants to businesses, municipalities, not-for-profit corporations or local development corporations for the purpose of attracting, maintaining or permitting the expansion of food retail establishments in underserved areas.
Prohibits awarding of economic development subsidy to business if payment of principal and interest on previously awarded loan or loan guarantee is greater than 24 months overdue.
Prohibits awarding of economic development subsidy to business if payment of principal and interest on previously awarded loan or loan guarantee is greater than 24 months overdue.