TRENTON – Legislation sponsored by Senate Economic Growth Committee Chair Nilsa Cruz-Perez and Senator Troy Singleton, which would prohibit awarding certain subsidies to businesses whose repayment of previously awarded loans are more than 24 months overdue, cleared the Senate today.
“Economic development subsidies are investments, this provision will help ensure we are making smart investments in viable companies,” said Senator Cruz-Perez (D-Camden/Gloucester). “There are countless small businesses across the state who could benefit from these subsidies, and in turn further enrich their communities.
The bill, S-1576, would prohibit any state public body from awarding an economic development subsidy to a business who previously received one if the payment on the previously awarded loan is greater than 24 months overdue.
“New Jersey should reward companies that are fiscally responsible, not those that are irresponsible,” said Senator Singleton (D-Burlington). “By prohibiting economic development subsidies from going to businesses that are two years overdue on their loans, we are instead directing these dollars to accountable businesses that are deserving of them.”
The bill was released from the Senate by a vote of 39-0.