Small businesses in New Jersey would get help navigating red tape, obtaining state contracts, finding vacant commercial space, and building their presence on the internet under a slate of proposals state Assembly Democrats are now pushing.
Assembly Speaker Craig Coughlin, D-Middlesex, told NJ Advance Media the nine-bill package is designed to help small businesses — those with 50 employees or fewer — “get over some of the hurdles” they face, especially in the wake of the economic turmoil caused by the coronavirus pandemic.
“Small business is the backbone of the state,” Coughlin said during a phone interview Wednesday. “These are people chasing the American Dream. They’re oftentimes young people, people getting back in the workforce, who come from other places, people who have always had an aspiration. They need a helping hand to find their way to be successful.”
Coughlin said bolstering small business is the latest of “five pillars” Assembly Democrats have focused on since the beginning of the year, along with combating hunger and improving housing, mental illness care, and child care.
There are more than 950,000 small businesses in New Jersey — which accounts for more than 99% of businesses in the state and includes more than 1.9 million employees, according to federal data.
Some business leaders and owners say the Garden State’s business climate is a tough one, with high taxes and costs and labyrinth-like regulations. They say it got even tougher in the wake of COVID-19, with about a third of small businesses the state having closed during the first year of the pandemic.
Republicans have repeatedly criticized Gov. Phil Murphy and his fellow Democrats — who control both the houses of the state Legislature, the Senate and Assembly — for lockdowns they say went on too long and for not doing enough to help businesses recover.
Assembly Democrats say this package of bills goes beyond the roughly $1 billion in federal and state pandemic aid given to small businesses in the state, focused on other methods to help companies get off the ground and grow.
One of the main measures, sponsored by Coughlin, would require the state to create a manual that would help small businesses get answers to questions on how to seek contracts, apply for permits, and more.
The speaker said that can especially be a long task for companies with only one or two employees.
“‘How to get a permit? Where do you go for that? What kind of permit do I need? They’re not hard things necessarily to do. But if you’re sitting around figuring out how to get a business started, they’re really helpful,” Coughlin said.
There is also a bill that would create a state program to help businesses owned by racial minorities or those at a disadvantage because of their race, ethnic origin, gender, physical disability — and location in an area of high unemployment or poverty — obtain state contracts in construction, engineering, technology, and more.
“New Jersey entrepreneurs come from all types of backgrounds and walks of life,” said Assemblywoman Verlina Reynolds-Jackson, D-Mercer, a main sponsor of that bill. “Someone who has struggled socially and economically shouldn’t be kept from government contracting opportunities because their knowledge or access is different.”
Another measure would set up a program for established businesses in the state to help newer ones, including passing along the tools they used to survived the pandemic, Coughlin said.
“God willing we’ll never have another pandemic, but there may be something else,” he said.
Another proposal would create a database of vacant commercial space — some created by closures during the pandemic — to help business owners find a location for their company. Finding space can be both costly and “arduous,” said Assemblywoman Sadaf Jaffer, D-Somerset, a sponsor.
Other bills would help owners create websites to increase promotion and boost their sales, expedite the state’s construction inspection process, and establish a grace period for owners to fix mistakes to rectify violations, as long as that doesn’t pose a threat to public safety.
All of the proposals would need to be passed by both the state Senate and Assembly before the governor could decide whether to sign them into law.
Business groups are backing the bills. Tom Bracken, president of the New Jersey State Chamber of Commerce, called it “good news for small business.”
Christopher Emigholz, chief government affairs officer for the New Jersey Business & Industry Association, said the package will “support small businesses by providing new business resources and making government more responsive to their ongoing needs.”
Sharon McAuliffe, owner of Knot Just Bagels in Woodbridge, said having to “quickly adapt, and sometimes at great time and expense to my business,” in the wake of the pandemic was difficult.
“Helping us existing small business owners and those just starting out rebound and grow should be a state priority,” McAuliffe added.
The bills would:
- Require the Business Action Center within the New Jersey State Department to work with business groups and state agencies to develop a manual to help small business owners understand contracts, market rate value for commercial property, information about permits, and more (A4749).
- Create a state assistance program to help “socially and economically disadvantaged businesses” obtain state contracts in construction, architecture and engineering, professional services, goods and services, and information technology services (A2146).
- Require the Business Action Center to collect and share customer assistance survey results in an effort to improve customer service (A4748).
- Require the Business Action Center to create a mentorship program for established businesses in the state pass knowledge to newer ones (A4751). Assemblywoman Gabriela Mosquera, D-Gloucester, said this is key because almost half of businesses fail within their first five years.
- Require the Business Action Center to establish a public database for vacant commercial space for small businesses (A4750).
- Create a state tech corps to help businesses develop a presence on the internet and expand online sales. (A4752)
- Allow a grace period for businesses in the state to resolve first-time violations that don’t pose imminent threats to public safety or welfare. Exceptions include those involving criminal charges and grounds for the suspension or revocation of a license, among others (A4753).
- Expedite the state’s construction inspection process (A573). Currently, for a single project, there may be numerous inspections — plumbing, electric, etc. — for a single project, which can result in long delays. This would create a three-day turnaround.
- Establish a “Biannual Small Business Matchmaker Initiative” within the state Department of State to connect small businesses with government agencies and contractors seeking services (A3424).
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Brent Johnson may be reached at bjohnson@njadvancemedia.com. Follow him at @johnsb01.
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