New Jersey § 34:1b-241

§ 34:1b-241.

a. The authority shall maintain and administer a small business loan program for the

purpose of providing loans to eligible small businesses. The authority shall consult with the department in administering the small business

loan program as it applies to: (1) an eligible small business that is an eligible

farming operation; (2) defining the types of dairy products that shall be considered

as value-added dairy products under the small business loan program, not inconsistent

with section 1 of P.L.2019, c. 240 ( C.34:1B-241.1 ); (3) developing small business loan program guidelines for qualified dairy farmers

and eligible farming operations; and (4) developing materials to provide to qualified

dairy farmers seeking to expand value-added dairy production in this State. b. (1) Loans made through the small business loan program may be made to an eligible small business. The loan funds may be applied to any aspect of the eligible small business that supports its capital purchases, employee training, and salaries for

new positions as determined by the authority. (2) Notwithstanding paragraph (1) of subsection b. of this section, loans made by

the authority to an eligible farming operation may only be applied to aspects of the

eligible farming operation that support the farming operation's farm equipment purchases,

as determined by the authority. Farm equipment purchased from loan funds made pursuant to P.L.2019, c. 240 shall be used by all of the business entities in the eligible farming operation. (3) Two or more business entities engaged in farming operations in the State seeking

to participate in the loan program established pursuant to subsection a. of this section

shall submit a joint application in a form as the authority shall require and shall

include information as the authority determines is necessary in consideration of a

loan authorized pursuant to P.L.2019, c. 240 . c. (1) In order to receive a loan pursuant to the small business loan program , a business, at the time of application, shall provide proof that it is an eligible

small business and shall enter into a small business loan agreement with the authority. (2) In order to receive a loan from the authority pursuant to P.L.2019, c. 240, a business entity engaged in farming operations in the State, at the time of application,

shall provide proof, in a manner determined by the authority, that it and at least

one other business entity meet the requirements to be an eligible farming operation,

including, but not limited to, proof that each business entity is engaged in farming

operations in the State and will use the farm equipment purchased with the loan funds. d. The authority shall review and may approve applications for the small business loan program. e. A business seeking to participate in the small business loan program shall submit

an application in a form as the authority shall require. The application shall include information the authority shall determine is necessary in consideration of the provisions of P.L.2011, c. 123 ( C.52:14B-21.1 et seq. ). f. Loans to an eligible small business under this section shall : (1) be made pursuant to a small business loan agreement made pursuant to subsection c.

of this section ; (2) bear interest at rates and terms deemed appropriate by the authority ; and (3) contain other terms and conditions considered appropriate by the authority that are

consistent with the purposes of P.L.2011, c. 201 ( C.34:1B-241.1 et seq. ) and with rules and regulations adopted by the authority pursuant to section 3 of P.L.2011, c. 201 ( C.34:1B-241.3 ) . The provisions of a loan agreement with an eligible farming operation shall include,

but need not be limited to, a statement of an eligible farming operation's proportional

shares of ownership, its farm equipment usage and maintenance responsibilities, and

its loan repayment responsibilities for any loan proceeds received under the loan

program. g. The authority may, in its discretion, require an eligible small business that receives

a loan under the small business loan program administered pursuant to P.L.2011, c. 201 ( C.34:1B-241.1 et seq. ) to submit an audited financial statement to the authority in order to ensure the

business's continued vitality. An audited financial statement from an eligible farming operation shall include each

business entity in the eligible farming operation using the farm equipment. h. The authority may, either through the adoption of rules and regulations, or through

the terms of the small business loan agreement made pursuant to subsection c. of this

section, establish terms governing the incidence of default by a recipient of a loan under the small business loan program , administered pursuant to P.L.2011, c. 201 ( C.34:1B-241.1 et seq. ). i. In determining whether to provide a loan to an eligible small business, the authority

shall consider, along with other criteria that the authority in its discretion deems

appropriate, whether the business commits to increasing its full-time employment level

in the State.