TRENTON – Legislation sponsored by Senate Economic Growth Committee Chair Nilsa Cruz-Perez and Senator Troy Singleton which would prohibit awarding economic development subsidies to businesses whose repayment of previously awarded loans is more than 24 months overdue cleared the Senate Economic Growth Committee today.
“Economic development subsidies are investments and this provision will help ensure we are making smart investments in viable businesses,” said Senator Cruz-Perez (D-Camden/Gloucester).
The bill, S-1576, would prohibit any state public body from awarding an economic development subsidy to a business that previously received an economic development subsidy that was a loan or guarantee loan if the payment on that previously awarded loan is greater than 24 months overdue.
“New Jersey should reward companies that are fiscally responsible, not those that are irresponsible,” said Senator Singleton (D-Burlington). “By prohibiting economic development subsidies from going to businesses that are two years overdue on their loans, we are instead directing these dollars to accountable businesses that are deserving of them.”
The bill was released from committee today by a vote of 5-0, and next heads to the full Senate for further consideration.