ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 4971

STATE OF NEW JERSEY

DATED:  MAY 15, 2025

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 4971 (1R).

      As reported, 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 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 EDA 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 EDA 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 IMPACT:

      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.