New Jersey 2024-2025 Regular Session

New Jersey Senate Bill S1341

Introduced
1/9/24  

Caption

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.

Impact

If enacted, SB S1341 will significantly alter the landscape for veteran-owned small businesses accessing capital in New Jersey. Specifically, those businesses that employ over 50% veterans will qualify for even lower rates and more favorable terms. Furthermore, small businesses owned by veterans who have been deemed service-connected disabled by the Department of Veterans Affairs will be eligible for interest rates as low as zero percent. The EDA is also prohibited from charging any fees associated with these loans, which further alleviates costs for veterans seeking financial assistance.

Summary

Senate Bill S1341 is aimed at enhancing the economic opportunities for veteran-owned small businesses in New Jersey. The bill mandates that the New Jersey Economic Development Authority (EDA) administer loans to eligible veteran-owned small businesses at reduced interest rates and with more flexible repayment terms than those typically available to other small businesses. The legislation seeks to support veterans by easing their financial burdens when starting or expanding their businesses, particularly in light of their service to the country.

Contention

Critics of the bill might raise concerns about the implications of preferential treatment in lending to veterans over other small businesses. While supporters argue that this legislation is imperative for supporting a demographic that has served the nation, some may fear that it sets a precedent for specialized lending programs that might undermine fairness in business funding. Additionally, there may be operational challenges for the EDA in administering these specific programs, especially regarding compliance oversight and verification of veteran status within businesses.

Companion Bills

NJ A4351

Same As 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.

NJ S848

Carry Over 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.

Previously Filed As

NJ S848

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.

NJ A4351

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.

NJ S3434

Requires EDA administer small business loan program to provide loans to small businesses owned or controlled by certain veterans.

NJ A3917

Requires EDA administer small business loan program to provide loans to small businesses owned or controlled by certain veterans.

NJ S873

Requires EDA administer small business loan program to provide loans to small businesses owned or controlled by certain veterans.

NJ A131

Requires EDA administer small business loan program to provide loans to small businesses owned or controlled by certain veterans.

NJ S1159

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

NJ S582

Expands EDA small business loan program to include certain broadband telecommunications service providers.

NJ S1327

Expands EDA small business loan program to include certain broadband telecommunications service providers.

NJ A3050

Expands EDA small business loan program to include certain broadband telecommunications service providers.

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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.

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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.

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