To ensure economic development subsidies are fairly distributed among New Jersey businesses, Assemblyman Eric Houghtaling and Clinton Calabrese have sponsored legislation that would prohibit the awarding of subsidies to any business that is more than 2 years late in paying off a previously awarded loan.
Upon the bill (A-492) unanimously passing the full Assembly Monday, the sponsors released the following statements:
“Investing in our state’s economy can have tremendous benefits for consumers, workers and business owners alike. However, it’s only fair to award subsidies for economic development to businesses that have successfully repaid their past debts, or have not had an opportunity to receive an award,” said Assemblyman Houghtaling (D-Monmouth). “By removing companies who failed to meet prior subsidy obligations from the running, we open the door for other businesses to apply that are able to hold up their end of an agreement. It’s a smarter, more efficient use of state funds, and better investment in New Jersey businesses.”
“We should be cautious of an organization that has shown it cannot or will not reliably pay a subsidy back. The point of these loans is to help stimulate economic development in our state,” said Assemblyman Calabrese (D-Bergen, Passaic). “We must hold businesses that receive economic subsidies from New Jersey accountable for the loans they are given.”
The bill will now go to the Senate.