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. Contractors must include a request for advanced payment in their bid if it is necessary for fulfilling the contract 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 that any contractor or subcontractor who receives an advanced payment will be liable for repayment if they fail to begin or complete the work associated with the payment. This legislation is designed to support small businesses, LGBTQ+ businesses, minority and women-owned businesses, veteran and disabled veteran-owned businesses, and those owned by socially and economically disadvantaged individuals by easing financial barriers to participating in public contracts. The bill will take effect 90 days after its enactment.