S3052CV

January 9, 2012
SENATE BILL NO. 3052
To the Senate: The Legislature has seen fit to unilaterally pass jobs bills that are duplicative of existing efforts by my
Administration.
Accordingly, pursuant to Article V, Section I,
Paragraph 14 of the New Jersey Constitution, I am returning Senate Bill No. 3052 with my recommendations for
reconsideration. This bill would require the Economic Development Authority to establish a Small Business Loan Program to provide loans to eligible small businesses. duplicate the already However, this proposed program would efforts of the Authority.
existing
Through various programs, including the Small Business Fund, the Main Street Business Assistance Program, the Statewide Loan Pool Program, and the New Jersey Business Growth Fund, the Authority provides financing options to assist small businesses. Over the
last three years, these programs have provided approximately $60 million in public financing, which was leveraged for over $250 million in combined public/private financing, to 231 projects within the State. The vast majority of those loans were to New
Jersey small businesses. However, despite the fact that this legislation is
unnecessary and duplicative of the Authoritys efforts, I am nevertheless pleased with the Authoritys current programs and believe that the State would benefit by those efforts being memorialized via a permanent statutory enactment. Such an
enactment will assist in my on-going efforts to ensure that New Jersey remains a friendly environment for small business for years to come.
I also note that in addition to the duplicative nature of this legislation, I am highly concerned that it provides for statutorily mandated interest rates of two percent or less for loans from its proposed Small Business Loan Program.
Statutorily mandated interest rates that do not account for or accommodate fluctuating market conditions are not sustainable. Similarly, I am concerned with the other strict criteria including a maximum number of employees, maximum financing
amounts, maximum loan amounts, and employee hiring requirements that this bill mandates. I believe that the reason the
Authority has continued to thrive in its mission of providing incentives and financing options to businesses is due to its flexibility to respond to changing market conditions. The
Authority can accommodate the evolving needs of the business community in a manner far swifter than legislative enactments. Therefore, I am also returning this legislation with
recommendations that eligibility criteria and interest rates be left to the Authority to administratively determine, in order to respond to the ever-changing marketplace. Accordingly, I herewith return Senate Bill No. 3052 and recommend that it be amended as follows: Page 2, Section 1, Line 14: Page 2, Section 1, Lines 15-16: Delete (1) Delete ; (2) is organized for profit with a place of business located in this State; (3) and insert , Delete ; (4) employs less than 100 full-time employees; (5) is not and insert , and which satisfies other criteria that may be established by the Authority in its discretion. Delete in their entirety Delete establish insert maintain and
Page 2, Section 1, Line 17:
Page 2, Section 1, Lines 18-20: Page 2, Section 2, Line 22:
Page 2, Section 2, Lines 26-27:
Delete total under such exceed
, provided that the amount of all loans the program to any business shall not $250,000
Page 2, Section 2, Line 34:
Delete , which agreement shall provide that the business and insert . Delete in their entirety Delete (1) Delete no more than two percent and insert rates and terms deemed appropriate by the Authority Delete in their entirety and insert g. The Authority may, in its discretion, require an eligible small business that receives a small business loan under the program administered pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) to submit an audited financial statement to the Authority in order to ensure the businesss continued viability. Delete in their entirety and insert h. The Authority may, either through the adoption of rules and regulations, or through the terms of the small business loan agreement made pursuant to subsection c. of this section, establish terms governing the incidence of default by an eligible small business that receives a small business loan under the program administered pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill). Delete in their entirety and insert i. In determining whether to provide a loan to an eligible small business, the Authority shall consider, along with other criteria that the Authority in its discretion deems appropriate, whether the business commits to increasing its full-time
Page 2, Section 2, Lines 35-39: Page 2, Section 2, Line 47: Page 3, Section 2, Lines 1-2:
employment State. Page 4, Sections 3-4, Lines 5-45: Page 4, Section 5, Line 47: Page 5, Section 6, Line 4:
level
in
the
Delete in their entirety Delete 5 and insert 3 Delete 6 and insert 4 Respectfully, /s/ Chris Christie Governor
[seal] Attest: /s/ Kevin M ODowd Deputy Chief Counsel to the Governor

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January 9, 2012

SENATE BILL NO. 3052

Accordingly, pursuant to Article V, Section I,

Page 2, Section 1, Line 17:

Page 2, Section 1, Lines 18-20: Page 2, Section 2, Line 22:

Page 2, Section 2, Lines 26-27:

Delete total under such exceed

Page 2, Section 2, Line 34:

Page 3, Section 2, Lines 7-37:

Page 3, Section 2, Lines 38-48:

Page 4, Section 2, Lines 1-3:

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