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 who are certified by the Division of Revenue Business Certification Program in the Department of the Treasury. Additionally, contractors are required to include a request for advanced payment as part of their bid if it is necessary for fulfilling the contract terms.

Furthermore, the bill mandates that contractors who receive advanced payments must distribute a proportionate amount to their subcontractors, provided those subcontractors are also certified business enterprises. This payment must be made within 60 days of the contractor receiving the advanced payment. The legislation also establishes that any contractor or subcontractor who fails to commence or complete the contracted work will be liable for repaying the advanced amounts received. The bill is designed to support small, minority, women-owned, LGBTQ+, veteran, and disabled veteran-owned businesses, as well as those owned by socially and economically disadvantaged individuals.