LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 2356
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: MAY 22, 2024
SUMMARY
Synopsis: Establishes advertisement grant program for emerging businesses in
science and technology.
Type of Impact: Annual increase in State expenditures and potential increase in annual
State revenues.
Agencies Affected: New Jersey Economic Development Authority.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Expenditure Increase Indeterminate
Potential State Revenue Increase Indeterminate
 The Office of Legislative Services (OLS) finds that the bill may result in an indeterminate
annual increase in State expenditures attributable to the creation of the New Jersey Emerging
Business Advertising Grant Program. The bill provides the New Jersey Economic
Development Authority with considerable discretion to determine the scope and parameters of
the grant program, and the bill does not make an appropriation for the program.
 The OLS estimates that the authority will likely incur costs to administer the program. Program
management and design staff that may be needed to administer the program will likely have
an annual salary and fringe benefit cost in the range of $75,000 to $150,000 per year.
 This program provides grant monies for advertising and marketing materials, which would aid
small businesses in the State to reach their target audience, resulting in increased sales revenue.
Therefore, these grants may generate faster growth for these businesses than would have been
realized without the grant. When this occurs, the incremental State tax revenues may be
indirectly attributed to the grant program.
BILL DESCRIPTION
This bill requires the authority to establish a New Jersey Emerging Business Advertising Grant
Program to provide funds to New Jersey emerging businesses in science and technology to support
advertising and marketing expenses.
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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A New Jersey “emerging business in science and technology” is a company with fewer than
225 employees, of whom at least 75 percent are filling a position in New Jersey that is doing
business, employing or owning capital or property, or maintaining an office in New Jersey and a
business that conducts technology commercialization in New Jersey in at least one of several
industries provided in the bill. Notably, to qualify for the grant program, an entity is required to
meet the definition of an emerging business in science and technology and comply with all criteria
established by the authority. Additionally the authority would determine the amount of each grant
awarded under the program.
The bill also requires grant recipients to submit an annual audited financial statement to the
authority to demonstrate compliance with the terms and conditions of the grant program until all
monies from the fund have been expended. If a recipient improperly uses the grant, the authority
would be required to convert the grant to a loan pursuant to the rules to be adopted by the authority.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that the bill may result in an indeterminate annual increase in State expenditures
attributable to the creation of the New Jersey Emerging Business Advertising Grant Program.
The bill provides the authority with considerable discretion to determine the scope and
parameters of the grant program, and the bill does not make an appropriation for the program. In
addition to the costs of the grants provided under the bill, there will also likely be costs incurred
by the authority to administer the program. Notable program administration costs could include
staff to develop program documentation such as applications, reporting documents, and marketing
materials; staff time to review applications and verify grantee reporting documents; and staff time
and materials to distribute marketing materials for the program. The program will likely require
the authority to hire one or more staff for the duration of the program. Program management and
design staff of this type will likely have an annual salary and fringe benefit cost in the range of
$75,000 to $150,000 per year. Additional costs would come in the form of any materials needed,
such as marketing materials, which could include flyers, brochures, or the distribution of paper or
digital advertising targeted at potential grant applicants.
This grant program is designed to target emerging businesses in science and technology with
growth potential in the State. If these businesses realize that potential and remain within the State,
the businesses can drive economic growth and generate jobs as well as additional annual State
sales, income, and business tax revenues. This program provides grant monies for advertising and
marketing materials, which would aid the ability of these businesses to reach their target audience
resulting in increased sales revenue. Therefore, these grants may generate faster growth at a
business than would have been realized absent the grant. When these situations occur, the
incremental State tax revenues may be indirectly attributed to the grant program. The OLS cannot
predict the amount and timing of when such indirect revenue will be generated. The authority may
also realize revenues if a grantee is found to have improperly used its grant and the grant converts
to a loan and the grantee is required to make principal and interest payments to the authority.
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Section: Authorities, Utilities, Transportation and Communication
Analyst: Michael D. Walker
Assistant Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).