Legislation which would create a “Small Business Loan Program” to provide low interest loans to small businesses that commit to increase their workforce was approved by the Senate Budget and Appropriations Committee by a unanimous vote.
The bill (S-3052) would direct the New Jersey Economic Development Authority to establish the “Small Business Loan Program” and provide two percent or lower interest loans of up to $250,000 to New Jersey small businesses who commit to increase their employment levels by at least 10 percent within the next four years. These loans can be used for capital purchases, employee training and salaries for new positions.
In order to be eligible, the small business must:
– Be independently owned and operated;
– Be for-profit with a place of business located in the State;
– Be primarily operated within the State;
– Not be dominant in its field;
– Employ less than 100 full-time employees
– Have not raised $10 million or more in equity financing; and
– Have not received $10 million or more in financing from any source.
In order to implement this program, the EDA would establish a “New Jersey Small Business Loan Fund” that could be credited with existing EDA funds, which would be self-sufficient and revolving based on loan repayments and fees and therefore would not require the State to incur any cost.
The bill now heads to the Senate for full consideration.