N.J. Admin. Code § 19:31E-1.5

Current through Register Vol. 56, No. 12, June 17, 2024

Section 19:31E-1.5 - Grant and loan agreements

(a) For loans, upon satisfaction of conditions in the commitment letter, as determined by the Authority, but before the disbursement of loan funds, the entity shall execute a loan agreement. For grants, following approval by the Authority, but before the disbursement of grant funds, the entity shall enter into a grant agreement with the Authority, provided that the terms of the grant approved to a microbusiness lender in conjunction with a loan shall be included in the loan agreement. All grant agreements and loan agreements shall include, but not be limited to, the following provisions:

1. The amount of the financial assistance and the frequency and dates of disbursements;

2. The term of the agreement;

3. A detailed description of the specific use for which the financial assistance was approved;

4. Representations that the entity is in substantial good standing or meets the agreement requirements described at N.J.A.C. 19:31E-1.4(d)1;

5. A provision requiring the entity to return to the Authority all the financial assistance disbursed if the Authority determines that the entity made a material misrepresentation on its application, which shall be in addition to any other remedies in the agreement and any criminal or civil penalties to which the entity and any corresponding officer may be subject;

6. A provision permitting an audit from time-to-time, as the Authority deems necessary, of all evidence, records, or any other evidence of the entity supporting the representations and certifications made as part of the application, the agreements, and any annual reports;

7. A requirement for the entity to indemnify the Authority in relation to the loan or grant agreement and the uses of the loan or grant funds and a requirement for insurance from the entity, as determined by the Authority, based on the product and the amount and permitted use of the financial assistance;

8. Reporting requirements determined by the Authority to be necessary to verify that the financial assistance is used only for the approved use; and

9. Defaults and remedies.

(b) For small business grant products established pursuant to N.J.A.C. 19:31E-1.3(a), including, but not limited to, the small business improvement grant product and the small business lease grant product, the grant agreement shall additionally include the following:

1. The location(s) of the applicant;

2. For the small business lease grant product, a requirement for the small business to remain at the same location for five years after the date of closing of the grant;

3. For the small business improvement grant product, a requirement for the small business to remain at the same location(s) after the date of closing of the grant for two years, if the grant amount does not exceed $ 25,000, or four years for all other grant amounts;

4. A requirement that the small business pay each full-time or part-time employee employed by the small business not less than $ 15.00 per hour or 120 percent of the minimum wage fixed under subsection (a) of section 5 of P.L. 1966, c. 113 (N.J.S.A. 34:11-56a 4), whichever is higher, except that the small business shall pay not less than 120 percent of the minimum wage to an employee who customarily and regularly receives gratuities or tips;

5. A requirement to submit annually for the term of the grant agreement, starting with the first anniversary of the closing of the grant agreement, the following:

i. WR 30, payroll reports, or equivalent documentation for the preceding year;

ii. Certification and evidence documenting that the eligible small business is in the same location; and

iii. Any other items that the Authority shall determine as necessary;

6. A provision requiring the entity to return to the Authority all the financial assistance disbursed if the Authority determines that the entity failed to comply with the prevailing wage requirements at N.J.A.C. 19:31E-1.3(a)4ii, the green building standards at N.J.A.C. 19:31E-1.3(a)4i, the payment of employees at N.J.A.C. 19:31E-1.3(a)3ii, and the provision of a tax clearance certificate at N.J.A.C. 19:31E-1.3(a)3i; and

7. A provision that the Authority shall recognize the amount of time the entity was in compliance with the agreement in calculating any repayment if the business ceases operations or moves to another location in the State.

(c) The following apply to financial assistance to microbusiness lenders:

1. A requirement that any lending and investing by the microbusiness lender using the grant or loan from the Authority shall be limited to microbusinesses;

2. Interest rate and repayment obligations;

3. If the Authority approved the loan for the microbusiness lender to invest or lend to microbusinesses, a requirement to submit annually, no later than 30 days after the end of the microbusiness lender's fiscal year, for the term of the grant agreement, a list of the loans the microbusiness lender has provided to microbusinesses using the loan. The list shall include outstanding loans, loans past due, reserves, loss experience, and non-accrual loans. For each loan, the list shall set forth the loan amount approved and disbursed, the job creation or retention anticipated at the time of approval, the location(s) of business, any additional amount of private funding per project, whether the business is women- or minority-owned, whether the business is certified by the State as a "minority business" or a "women's business," and, to the extent known, whether any owner of the microbusinesses is a woman, minority group member, veteran, or LBGTQA person.

(d) In any submission required by the Authority pursuant to this section, the applicant, or an authorized agent of the applicant, shall certify under the penalty of perjury that the information provided in the submission is true.

N.J. Admin. Code § 19:31E-1.5

Recodified from 19:31-5.5 56 N.J.R. 807(a), effective 5/6/2024