New Jersey Senate Bill S428

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Establishes loan program in EDA to assist businesses owned by individuals with disabilities; appropriates $5 million.

Impact

The bill aims to foster economic empowerment by providing individuals with disabilities the resources to start or maintain businesses. By requiring that at least five full-time employees be hired, with a significant portion being New Jersey residents, the program is anticipated to boost local employment. This initiative supports state objectives of promoting inclusivity and equality in the economic landscape, notably providing opportunities for underrepresented groups.

Summary

Senate Bill S428 proposes the establishment of a loan program within the New Jersey Economic Development Authority (EDA) specifically aimed at assisting businesses owned or operated by individuals with disabilities. The bill allocates $5 million from the General Fund to fund this program, where qualified businesses can apply for low-interest loans to cover operational or capital expenses necessary for establishing or continuing their business operations. The loans will be characterized by favorable terms, including a maximum interest rate of three percent and flexible repayment options.

Contention

Key points of contention may arise around the bill's operational details, such as the eligibility criteria, which mandate businesses to demonstrate viability and modify aspects of loan forgiveness. Critics might argue about potential burdens on the EDA regarding oversight and the allocation of funds, as well as concerns about defining what constitutes a 'qualified business.' Others might question whether the allocation of $5 million is sufficient to make a significant impact or if it effectively addresses the unique challenges faced by businesses owned by individuals with disabilities.