New Jersey’s smallest businesses, daycare centers, bars, restaurants, and nonprofits that have suffered a year of disruptions and restrictions could receive $ 100 million in assistance under a legislative package approved by a State Assembly committee Monday.
The plan of five bills would provide federal funding for employers in these sectors, including $ 25 million for micro-businesses, $ 35 million for bars and restaurants, $ 10 million for day care, and $ 15 million for arts and crafts Millions of dollars in cultural organizations and $ 15 million for other businesses and nonprofits.
Corporate revenues have fallen during the pandemic and unemployment has skyrocketed. Almost four in ten small businesses in Garden State have closed their doors, according to the New Jersey Business and Industry Association.
“These bills will help our economy and hopefully address those onerous numbers,” said Christopher Emigholz, vice president of government affairs for the organization.
The grants are “subject to availability” of federal funding, whether it is outstanding CARES Act funds or a portion of the $ 6.3 million New Jersey under the stimulus package before Congress in this one Week might get in the way.
The state’s economic development agency would be tasked with allocating and determining the amount of the individual grants in accordance with the draft laws.
According to the draft law (A5443), a microbusiness employs 10 or fewer full-time equivalents.
“In addition to employing local residents, micro-enterprises offer unique products and services tailored to their communities. New Jersey is a state that values hard work, ingenuity and entrepreneurship, and these companies are a perfect example of the principles we want to promote here, “the law’s Democratic sponsors said in a joint statement.
According to the draft law (A5444), subsidies for restaurants and bars, breweries, brewpubs and wineries would be limited to people with 100 or fewer employees.
The Assembly for Trade and Economic Development approved the bills on Monday afternoon. They must be passed by both Houses of State and signed by the governor for them to take effect.
The committee also approved a bill (S3305) providing corporate corporations or gross income tax credits for virus-related improvements such as sneeze protection, infrared thermometers and ventilation in non-residential buildings in 2020, 2021 and 2022.
“The changes made to buildings in our state since this pandemic began have been critical in protecting residents from COVID-19,” the law’s sponsors said in a statement. “Upgrading HVAC systems to increase outside airflow and improve air filtration is just one of the ways business owners and landlords have helped prevent this deadly virus from spreading among building residents.”
Tax credits would be capped at $ 100,000 for businesses with a smaller footprint and $ 250,000 for businesses with a larger footprint. You could carry forward the loans for up to seven tax years. The bipartisan Legislative Services Bureau said it could not determine the state’s potential loss of revenue.
The Senate passed the law in January 32-0.
Another bill (A4958) approved by the Commerce Committee on Monday provides sales tax exemption for small businesses that have purchased goods or services such as snow removal, tents and space heaters between September 1, 2020 and March 31, 2021 to do so to enable it to operate outdoors.
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Samantha Marcus can be reached at [email protected]