This bill aims to facilitate access to capital for certified business enterprises in New Jersey that are awarded State contracts by allowing State agencies to issue advanced payments of up to 10 percent of the total contract value. This provision is applicable to contractors certified by the Division of Revenue Business Certification Program in the Department of the Treasury. To benefit from this advanced payment, contractors must include a request for it in their bid, indicating its necessity for fulfilling the contract's terms. Additionally, if a contractor receives an advanced payment, they are required to share a proportionate amount with any subcontractors who are also certified business enterprises within 60 days of receiving the payment.

Furthermore, the bill establishes accountability by stipulating that contractors and subcontractors who receive advanced payments must repay the amounts if they fail to commence or complete the contracted work. This measure is designed to support small businesses, minority and women-owned businesses, LGBTQ+ businesses, veteran and disabled veteran-owned businesses, and those owned by socially and economically disadvantaged individuals, thereby promoting inclusivity in public contracting. The bill will take effect 90 days after its enactment.