S3891 1R

An Act concerning small business grants¹[,] and¹ supplementing P.L.1974, c.80 (C.34:1B-1 et seq.) ¹[, and making an appropriation]¹.

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).

¹“Extended closure” means the closure of a small business for a period of time equal to or exceeding one month.¹

“Fund” means the “Small Business Interruption Grant Program Fund¹[,]¹” established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature of this bill).

¹[“Low-income community” means a municipality in this State with a total population of less than 10,000 and a poverty rate of greater than 7.5 percent.]¹

“Program” means the “Small Business Interruption Grant Program¹[,]¹” 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 ¹[100] 10¹ individuals ¹[and suffered economic loss due to a prolonged infrastructure or construction project undertaken by the State or other public entity] , and has incurred $1,500,000 or less in gross revenue annually¹.

2. a. The New Jersey Economic Development Authority shall establish a “Small Business Interruption Grant Program¹[,]¹” for the purpose of awarding grants to small businesses ¹[in low-income communities]¹ that ¹have¹ suffered economic loss due to ¹an extended closure as a consequence of¹ prolonged infrastructure or construction projects undertaken by the State or ¹[other] another¹ 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) ¹[is located within a low-income community in this State;

(3)]¹ has suffered economic loss due to ¹an extended closure as a consequence of¹ a prolonged infrastructure or construction project undertaken by the State or ¹[other] another¹ public entity before or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill); and

¹[(4)] (3)¹ 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 ¹[the amount of actual or projected revenue loss as a result of closures or declines in business] any operating expenses incurred by the small business¹ due to ¹an extended closure as a consequence of¹ 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 ¹[on a rolling basis,]¹ subject to availability of funds.

e. In administering the program ¹,¹ 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]¹:

(1) ¹establish¹ procedures and timelines for ¹program¹ applications ¹[for the program]¹, approvals thereof, and the disbursement of grants from the fund to ¹a¹ small ¹[businesses] business under the program¹;

(2) ¹[any] establish¹ reporting requirements for a small business that has received a grant through the program; ¹[and]¹

(3) ¹develop¹ any other policies ¹[deemed necessary by] that¹ the authority ¹[for the administration of] deems necessary to administer¹ the program and the fund ¹; 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 program¹.

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. ¹For 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.¹

4. ¹[a. There is appropriated the sum of $750,000 from the General Fund to the New Jersey Economic Development Authority for deposit into the “Small Business Interruption Grant Program Fund,” established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. In addition to the amounts appropriated pursuant to subsection a. of this section, the] The¹ Legislature may appropriate such ¹[additional]¹ 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 ¹[other]¹ such funds as are available for implementation of P.L. , c. (C. ) (pending before the Legislature as this bill).

¹[5. Notwithstanding any provision of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) or any other law to the contrary, the authority shall adopt such rules and regulations as the authority deems necessary to implement the provisions of this act. The regulations shall, at a minimum, set forth the requirements for application submissions, the criteria for application selections, the permitted uses of grant proceeds, and the period of time prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) for which a small business may apply for a grant under the program for economic loss suffered due to a prolonged infrastructure or construction project undertaken by the State or other public entity that occurred before the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill). The regulations shall thereafter be amended, adopted, or readopted by the authority in accordance with the provisions of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.).]¹

¹[6.] 5.¹ This act shall take effect immediately.