New Jersey § 52:27d-444

§ 52:27d-444.

The Legislature finds and declares that: a. Micro-business loans are usually granted to those businesses that are mostly sole

proprietorships with five or fewer employees, that require an initial capital outlay

of less than $35,000 to start a new business or expand an existing business, utilize

loans in amounts of less than $15,000 with most loans being paid back on time, and

experience a default rate that is often no higher than on commercial loans; b. Experience in numerous other states and in certain urban areas in New Jersey has

shown that “micro lending,” or carefully underwriting small loans to individual entrepreneurs

with well-developed, realistic business plans, has been successful in helping individuals,

without regard to geographical location, to start micro-businesses; c. Nonprofit community-based development corporations have the experience of providing

the training and technical assistance that is necessary for prospective entrepreneurs

to establish a viable business; d. While the New Jersey Economic Development Authority currently manages several programs

to promote the development of micro and small businesses in the State and the New

Jersey Development Authority for Small Businesses, Minorities' and Women's Enterprises

has a peer group micro-lending program in place which targets urban areas of the State,

there is a need to establish a separate micro-business credit program to provide new

and innovative ways to assist more unemployed women and underemployed women in all

areas of the State to enter or reenter the marketplace and to recognize that nonprofit

community-based development corporations and certain Statewide women's business organizations

have the experience of providing the training and technical assistance that is necessary

for prospective entrepreneurs to establish a viable business; and e. It is appropriate to establish a micro-business credit program that would target

only those potential female entrepreneurs who have little or no prior business experience,

are self-motivated and are willing to undertake an extensive training program and

receive other kinds of technical assistance in order to gain the necessary experience

to start a successful business through grants given to certified nonprofit community

development corporations and certain Statewide women's business organizations, and

the Department of Community Affairs which has experience in evaluating and monitoring

community development corporations is the appropriate State agency to accomplish these goals.