TO:                      Members of the New Jersey General Assembly   

FROM:               Hilary Chebra, Manager, Government Affairs CCSNJ

RE:                      Support of A-4330 (Schaer/Pintor Marin/Zwicker)

DATE:                 June 21, 2021

The Chamber of Commerce of Southern New Jersey (CCSNJ) would like to respectfully request your support for A4330 (Schaer / Pintor Marin / Zwicker), the "Economic Emergency Investment Stabilization Act". This bill would allow the New Jersey Economic Development Authority (NJEDA) to invest in businesses impacted by major economic emergencies.

As written, the bill creates the “Economic Emergency Investment Stabilization Program” which would allow the NJEDA to make direct equity investments in businesses that have been financially harmed by a “major economic emergency”. A situation would be considered a major economic emergency if the Governor declares a state of emergency due to a public health crisis or natural disaster that causes a major disruption to the state's economy, resulting in decreased revenues and increased unemployment. Investments would be made by purchasing shares of the company in exchange for a minority stake in the business. Once 12 months have passed from the end of the major economic emergency, the NJEDA is to take all funds in the pandemic investment stabilization fund and transfer them into the “Economic Recovery Fund,” as well as any future receipts from the sale of equity investments that were made under the major economic emergency.

The COVID-19 pandemic was not only a public health emergency, but an economic emergency, with necessary mandated business closures aimed at containing this virus. In fact, more than thirty percent of small businesses were forced to close for good. While the state begins to reopen the economy, many small businesses continue to struggle, having had to exhaust their cash reserves to continue to operate through the pandemic.  This bill will help to provide financial assistance to small businesses impacted by the COVID-19 pandemic.

The CCSNJ applauds this innovative way to provide businesses with the assistance they need to restart the economy as the state continues its recovery.

Thank you for the opportunity to share our support of A-4330 (Schaer/Pintor Marin/Zwicker).