Requires EDA to provide grants to certain small businesses affected by State infrastructure and construction projects; appropriates $750,000.
The implementation of this bill is expected to have a significant impact on state laws regarding economic assistance to small businesses, specifically in relation to how aid is distributed and to whom. By prioritizing low-income communities, S3891 aims to mitigate some of the adverse economic effects that infrastructure projects can impose on local businesses. The EDA is tasked with establishing and maintaining a fund dedicated to this program, suggesting a formalized process for assessing grant applications and determining eligible businesses.
Senate Bill S3891, introduced in the New Jersey legislature, seeks to establish a 'Small Business Interruption Grant Program' aimed at providing financial assistance through grants to small businesses located in low-income communities. These businesses will be eligible for grants if they have suffered economic losses due to prolonged infrastructure or construction projects undertaken by the state or other public entities. The bill allocates $750,000 from the General Fund to support this program, enabling the New Jersey Economic Development Authority (EDA) to develop a structured approach for granting these funds.
There may be points of contention surrounding the bill regarding the criteria used to define 'low-income communities' and how the EDA will assess the eligibility of small businesses. Critics might argue that the boundaries set for eligibility could exclude some businesses that are equally impacted by state projects. Additionally, the decision-making processes of the EDA in awarding grants could be scrutinized, particularly if there are perceived inequalities in how grants are distributed among businesses in need.