S715

An Act concerning small business grants and supplementing P.L.1974, c.80 (C.34:1B-1 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

“Authority” means the New Jersey Economic Development Authority established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4).

“Extended closure” means the closure of a small business for a period of time equal to or exceeding one month.

“Fund” means the “Small Business Interruption Grant Program Fund” established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature of this bill).

“Program” means the “Small Business Interruption Grant Program” established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature of this bill).

“Small business” means a business that is independently owned and operated, employs fewer than 10 individuals, and has incurred $1,500,000 or less in gross revenue annually.

2. a. The New Jersey Economic Development Authority shall establish a “Small Business Interruption Grant Program” for the purpose of awarding grants to small businesses that have suffered economic loss due to an extended closure as a consequence of prolonged infrastructure or construction projects undertaken by the State or another public entity.

b. To qualify for the grant program, a small business shall demonstrate to the authority that the small business:

(1) meets the definition of “small business” pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill);

(2) has suffered economic loss due to an extended closure as a consequence of a prolonged infrastructure or construction project undertaken by the State or another public entity before or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill); and

(3) meets any other eligibility requirement that the authority deems appropriate.

c. The amount of any grant awarded to a small business shall be determined by the authority based on any operating expenses incurred by the small business due to an extended closure as a consequence of a prolonged infrastructure or construction project.

d. The authority shall develop an application by which a small business may apply for a grant. Upon application to the authority in the manner and form established pursuant to this section, the authority shall award a grant to a small business subject to availability of funds.

e. In administering the program, and the fund established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), the authority shall:

(1) establish procedures and timelines for program applications, approvals thereof, and the disbursement of grants from the fund to a small business under the program;

(2) establish reporting requirements for a small business that has received a grant through the program;

(3) develop any other policies that the authority deems necessary to administer the program and the fund; and

(4) collaborate with relevant State and local entities to ensure that infrastructure and construction project timeframes include specific project start dates to assist a small business that may be affected by an infrastructure or construction project to determine the small business’s eligibility for grant funding under the program.

3. The authority shall establish and maintain a fund, known as the “Small Business Interruption Grant Program Fund,” to provide grants to small businesses that participate in the program and to administer the program. The fund shall be credited with such monies as may be appropriated or made available to the authority for the purpose of the fund. For each prolonged infrastructure or construction project, the entity responsible for the prolonged infrastructure or construction project shall contribute to the fund an amount greater than zero but less than or equal to five percent of the estimated total project costs to support small businesses that suffer economic loss due to an extended closure as a consequence of the prolonged infrastructure or construction project.

4. The Legislature may appropriate such funds as may be necessary for the implementation of P.L. , c. (C. ) (pending before the Legislature as this bill). The New Jersey Economic Development Authority may also utilize such funds as are available for implementation of P.L. , c. (C. ) (pending before the Legislature as this bill).

5. This act shall take effect immediately.

STATEMENT

This bill requires the New Jersey Economic Development Authority (EDA) to establish a “Small Business Interruption Grant Program” (program) to provide grants to small businesses that have suffered economic loss due to an extended closure as a consequence of prolonged infrastructure or construction projects undertaken by the State or another public entity. The bill requires the EDA to: develop an application by which a small business may apply for a grant, award grants to small businesses subject to availability of funds, administer the grant program, and establish and maintain a “Small Business Interruption Grant Program Fund” to provide grants to small businesses that participate in the program.

To qualify for grant funding through the program, an applicant is required to: (1) be a small business; (2) have suffered economic loss due to an extended closure as a consequence of a prolonged infrastructure or construction project undertaken by the State or another public entity before or after the bill’s effective date; and (3) meet any other eligibility criteria that the EDA deems appropriate. Under the bill, the EDA is to determine the amount of a program grant based on operating expenses incurred by a small business due to an extended closure as a consequence of a prolonged infrastructure or construction project.

Finally, the bill requires the entity responsible for the prolonged infrastructure or construction project, for each prolonged infrastructure or construction project, to contribute to the fund, at most, an amount equal to five percent of the estimated total project costs to support small businesses that suffer an economic loss due to an extended closure as a consequence of the prolonged infrastructure or construction project.