The state Economic Development Agency would establish a small business loan program providing for up to $250,000 for small privately held businesses under a bill approved by the Assembly Commerce and Economic Development Committee today.
An identical bill passed in the Senate in September.
According to the language in the bill, the loan money would be used for capital purchases, employee training and salaries for new positions.
The bill defines a small business as any business that is independently owned and operated, is organized for profit with a place of business located in New Jersey, operates primarily within the state employees less than 100 full-time employees, is not dominant in its field, has not raised $10,000,000 or more in total equity financing and has not received $10,000,000 or more in financing from any source.
In order to be eligible for the loan, the small business would be required to commit to increasing full-time employment by at least 10 percent, or one full-time employee, whichever is greater, within four years. The loans would be issued at two percent interest but a recipient could be charged less if the company commits to increasing its staff by more than 10 percent or more than one full-time employee if the company is smaller than 10 employees.
The state will pay for the legislation using a combination of funding sources, including money from the state’s Economic Recovery Fund, legislative appropriations, fees collected by the agency and private or financial institution investment.