This bill amends the existing small business loan program administered by the New Jersey Economic Development Authority (EDA) to provide enhanced support for eligible veteran-owned small businesses. Specifically, it mandates that the EDA offer loans at lower interest rates and with more flexible repayment terms compared to those available to other small businesses. An eligible veteran-owned small business can qualify for these favorable terms if more than 50% of its employees are veterans. Additionally, the bill stipulates that loans issued to veteran-owned small businesses owned or controlled by veterans with service-connected disabilities will bear an interest rate of zero percent.

Furthermore, the bill prohibits the EDA from charging any fees associated with the issuance of small business loans to eligible veteran-owned small businesses, including application, commitment, closing, and guarantee fees. The bill defines "veteran" as any resident honorably discharged from active service in the U.S. Armed Forces and clarifies that a "veteran-owned small business" is one that is owned or controlled by one or more veterans. This legislation aims to support veteran entrepreneurs by reducing financial barriers and promoting their business growth.

Statutes affected:
Introduced: 34:1B-241.2