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Bill > A881


NJ A881

NJ A881
Requires EDA to provide loans through small business loan program at lower interest rates, with more flexible repayment terms if issued to small businesses owned or controlled by certain veterans, and prohibit certain fees.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill requires the New Jersey Economic Development Authority, to the greatest extent practicable, to administer an existing small business loan program in a manner to provide small business loans to eligible veteran-owned small businesses at lower interest rates and with more flexible repayment terms than are made available by the authority to other eligible small businesses. An eligible veteran-owned small business can qualify for more favorable interest rates and repayment terms if more than 50 percent of the individuals employed by the eligible veteran-owned small business are veterans. The interest rate for a small business loan issued to an eligible veteran-owned small business that is owned or controlled by one or more veterans who have been declared by the United States Department of Veterans Affairs or the United States Department of Defense as having a service-connected disability would be zero percent. The authority is not allowed to charge fees for the issuance of a small business loan to an eligible veteran-owned small business, including, but not limited to, application, commitment, closing, and guarantee fees.

AI Summary

This bill requires the New Jersey Economic Development Authority (EDA) to administer its existing small business loan program to offer more favorable terms to eligible veteran-owned small businesses, meaning businesses owned or controlled by veterans. Specifically, these businesses will be eligible for lower interest rates and more flexible repayment schedules compared to other small businesses. If more than half of a veteran-owned small business's employees are also veterans, they will qualify for these enhanced benefits. Furthermore, any veteran-owned small business where the owner or controller has a service-connected disability, as determined by the U.S. Department of Veterans Affairs or Department of Defense, will receive loans with a zero percent interest rate. The EDA will also be prohibited from charging any fees, such as application, commitment, closing, or guarantee fees, for loans issued to these eligible veteran-owned small businesses.

Committee Categories

Military Affairs and Security

Sponsors (2)

Last Action

Introduced, Referred to Assembly Military and Veterans' Affairs Committee (on 01/13/2026)

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