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.
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
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!
