LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY, No. 4971

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: MAY 14, 2025

 

 

SUMMARY

 

Synopsis:

Requires EDA to provide grants to certain small businesses affected by State infrastructure and construction projects. 

Type of Impact:

Annual State expenditure increase.  Potential State revenue increase. 

Agencies Affected:

New Jersey Economic Development Authority. 

 

Office of Legislative Services Estimate

Fiscal Impact

Annual

 

State Expenditure Increase

Indeterminate

 

Potential State Revenue Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) determines that annual State expenditures will increase by an indeterminate amount, for the New Jersey Economic Development Authority to establish, administer, and award grants to small businesses in low-income communities that have suffered economic loss due to prolonged infrastructure or construction projects undertaken by the State or other public entity.

·         Annual State costs cannot be determined because these costs will depend on program demand and any funding made available for the program through future appropriations made by the Legislature.

·         The State may realize additional revenue from application fees collected from grant applicants.   The OLS is unable to quantify these potential revenue increases because the amount of potential application fee collections cannot be determined at this time.

 

 

BILL DESCRIPTION

 

      This bill requires the authority to establish a Small Business Interruption Grant Program to provide grants to small businesses in low-income communities that have suffered economic loss due to prolonged infrastructure or construction projects undertaken by the State or other public entity.  The bill requires the authority to develop an application by which a small business may apply for a grant, award grants to small businesses on a rolling basis 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. 

      A small business would be eligible to apply for a grant under the bill for suffering an economic loss due to prolonged infrastructure or construction projects which occurred either before or after the bill’s effective date.  Under the bill, the amount of any grant awarded to a small business is to be determined by the authority based on the amount of actual or projected revenue loss as a result of closures or declines in business due to a prolonged infrastructure or construction project.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received. 

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS determines that annual State expenditures will increase by an indeterminate amount, for the authority to establish, administer, and award grants to small businesses in low-income communities that have suffered economic loss due to prolonged infrastructure or construction projects undertaken by the State or other public entity. 

      The authority would be responsible for administering the grant program, including developing criteria for awarding grants, setting application procedures, and overseeing fund distribution.  Annual State costs cannot be determined because these costs will depend on program demand and any funding made available for the program through future appropriations made by the Legislature.  The bill does not specify the maximum grant amount or the number of grants to be awarded, leaving these details to the authority’s discretion.  Under the bill, the Legislature may appropriate funds to support the grant program; however, the bill does not specify an amount. 

      The State may realize additional revenue from application fees collected from grant applicants.   The OLS is unable to quantify these potential revenue increases because the amount of potential application fee collections cannot be determined at this time.  

 

Section:

Authorities, Utilities, Transportation and Communications

Analyst:

Michael D. Walker

Associate Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).