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.
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
Types of Business Law Services Companies Actually Use
Business law services are legal services that help companies form, operate, transact, protect assets, manage risk, and resolve disputes. The phrase can sound broad because it is broad. A company may need help with entity formation one month, contract review the next, a commercial lease after that, and a business dispute later in the year. […]
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!
