Senators Seek Federal Funding for Small Business Grants and Loans

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TRENTON – Sen. Declan O’Scanlon (R-13th) and Sen. Michael Testa (R-1st) are seeking financial assistance for struggling New Jersey businesses from federal COVID funds distributed to the state.
“The state received the money from Washington six weeks ago, but Murphy is inexplicably sitting on it while our economy tanks and companies falter,” stated O’Scanlon. “The business community is being crushed by the pandemic, and many companies are on the brink of failure. They need help, and committing a portion of the more than $2 billion in COVID relief funds to help rescue struggling employers will save thousands of jobs and help fuel a robust recovery for the state’s economy. Dedicating this federal money to small and mid-size companies is an investment in a stronger New Jersey.”
According to a release, O’Scanlon noted Murphy has also been slow to act on another bill he sponsors, A-3959/S-2371, which allocates $100 million of the funds to hospitality. Also sponsored by Testa, that bill passed both the Senate and Assembly May 14 and awaits enactment by the governor.
Under O’Scanlon and Testa’s new measure, the $100 million would flow through the EDA to fund loans or grants to businesses to compensate for costs associated with interruptions due to any state-required closure during the coronavirus crisis.
“The excruciating state shutdown has gone on for too long, and without immediate financial relief, businesses will close their doors forever,” stated Testa. “Rather than holding onto every dollar and making our revenue situation worse, Murphy should be rushing funding out the door so businesses don’t go belly-up and they have the resources necessary to reopen safely. Murphy’s feeble handling of this crisis is placing mom-and-pop businesses at great risk. As many as 20% of restaurants and food businesses may not survive long enough to re-open for customers. This money can be the difference-maker for many enterprises that are facing serious financial problems and an uncertain future.”