Bill

Bill > A4274


NJ A4274

Requires EDA, in consultation with Department of Agriculture, to establish loan program for certain vineyard and winery capital expenses.


summary

Introduced
10/20/2016
In Committee
01/12/2017
Crossed Over
Passed
Dead
01/08/2018

Introduced Session

2016-2017 Regular Session

Bill Summary

This bill requires the New Jersey Economic Development Authority (EDA), in consultation with the Department of Agriculture (department), to establish a loan program and application process for the purpose of providing loans to eligible vineyards or wineries to pay for "qualified capital expenses," as that term is defined in the bill. Under the bill, the EDA, in consultation with the department, is to provide a loan to an eligible vineyard or winery to pay for qualified capital expenses. The loan amount is to be no less than $10,000 and no greater than $100,000 to each eligible vineyard or winery, bear a rate of interest between three and five percent, and be repayable over a term of up to ten years, as determined by the authority and department. A new vineyard or winery or an existing winery or vineyard that plans to use funds from the prospective loan to acquire more property in order to expand its business is to be eligible for higher loan amounts with lower interest rates as determined by the authority and department. Under the bill, "vineyard" means agricultural lands located in the State consisting of at least 1 contiguous acre dedicated to the growing of grapes or other fruit that are used or are intended to be used in the production of wine by a winery as well as any other plants or other improvements located thereon. "Winery" means a commercial farm where the owner or operator of the commercial farm has been issued and is operating in compliance with a plenary winery license or farm winery license pursuant to R.S.33:1-10.

AI Summary

This bill requires the New Jersey Economic Development Authority (EDA), in consultation with the Department of Agriculture, to establish a loan program for vineyards and wineries to cover "qualified capital expenses" such as equipment, infrastructure, and land acquisition. The loan amounts would range from $10,000 to $100,000, with an interest rate between 3-5% and a repayment period of up to 10 years. Vineyards or wineries planning to expand their business would be eligible for higher loan amounts and lower interest rates. The EDA can set terms governing defaults and may require annual audited financial statements to ensure the continued viability of the operations.

Committee Categories

Budget and Finance, Business and Industry

Sponsors (4)

Last Action

Reported and Referred to Assembly Appropriations Committee (on 01/12/2017)

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