Gov. Christie Signs Senate Bill No. 123 aimed to help New Jersey small businesses bid on public construction projects
Gov. Chris Christie recently signed a new law aimed to help New Jersey small businesses bid on public construction projects. Senate Bill No. 123 establishes “Small Business Bonding Readiness Assistance Program” to help small businesses meet state or federal contract surety bond requirements.According to Gov. Chris Christie, the new law will provide critical assistance to small business owners, who represent 98.3 percent of employers in this state. In many cases, these smaller contractors lack the resources to secure construction surety bonds, which are a mandatory prerequisite to bidding on public projects.
“S-123 is another avenue for small, minority-owned and women-owned businesses to have greater access to job-creating commercial opportunities,” Governor Christie said in a press statement. “It is a win for taxpayers and residents across New Jersey also because increased competition for public contracts will lead to lower costs and a more diverse pool of small businesses performing public services.”
Key Provisions of s-123
The new program, which aims to level the playing field between small and large contractors, will be operated by the Economic Development Authority (EDA). Below are the two key provisions of S-123:
Small Business Bonding Readiness Assistance Program
The “Small Business Bonding Readiness Assistance Program” will provide support services to small businesses and assist them in securing surety bonding so that small businesses may bid on public works projects or perform contracts offered by the state or by the federal government. To accomplish this, the EDA will enter an agreement with a non-profit business advocacy association.
The support services and assistance provided by the association will be designed to increase small businesses’ bonding knowledge and capacity in order for small businesses to qualify for surety bonding. The support services and assistance to small businesses will specifically focus on improving small businesses’ financial presentation, operational efficiency, profitability, and surety bonding capacity and knowledge through a series of workshops and strategic consulting sessions.
Small Business Bonding Readiness Assistance Fund
The new law also establishes a special revolving fund known as the “Small Business Bonding Readiness Assistance Fund.” The fund is intended to provide grant funding to small businesses that participate in the program, grant funding to an association that provides small businesses participating in the program with support services and assistance, and to administer the program.
Under S-123, the fund may be credited with monies made available by the EDA for the purpose of the fund. The authority is authorized to seek and accept gifts, grants, or donations from private or public sources for deposit in the fund which are not inconsistent with other laws.
The authority will be establishing terms and conditions by which small businesses may apply for the program, as well as procedures for the implementation of, and requirements for, the program and the administration of the fund.
Are you a New Jersey small business owner? Do you have any questions regarding S-123? Would you like to discuss the matter further? If so, please contact me, David Blank, at 201-806-3364.
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
