New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31E - MAIN STREET RECOVERY FINANCE PROGRAM › Subchapter 1 - MAIN STREET RECOVERY FINANCE PROGRAM › Section 19:31E-1.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, as used in this subchapter,
					 shall have the following meanings, unless the context clearly indicates
					 otherwise.
"Act" means the Main Street Recovery Finance Program Act,
					 sections
					 68 through
					 81 of
					 P.L.
					 2020, c. 156.
"Authority" means the New Jersey Economic Development
					 Authority established by section 4 of P.L. 1974, c. 80 (N.J.S.A.
					 34:1B-4).
"Board" means the Board of the New Jersey Economic
					 Development Authority, established by section 4 of P.L. 1974, c. 80 (N.J.S.A.
					 34:1B-4).
"Capital improvements" means:
1. Expenses that a business incurs for preparation and
					 construction, repair, renovation, improvement, equipping, or furnishing on real
					 property or of a building, structure, facility, or improvement to real
					 property, site-related utility, including, but not limited to, water, electric,
					 sewer, and stormwater, and transportation infrastructure improvements,
					 plantings, solar panels and components, energy storage components, installation
					 costs of solar energy systems, or other environmental components.
2. Expenses that a business incurs for obtaining, and
					 installing furnishings and machinery, apparatus, or equipment, including, but
					 not limited to, material goods subject to bonus depreciation under sections 168
					 and 179 of the Federal Internal Revenue Code (26 U.S.C. §§ 168 and
					 179), for the operation of a business on real property or in a building,
					 structure, facility, or improvement to real property.
3. "Capital improvements" shall not include site
					 acquisition; vehicles and heavy equipment not permanently located in the
					 building, structure, facility, or improvement; any capital improvement for
					 which the business received any grant financial assistance from any State
					 source; costs of a lease, including any capital lease; or any soft
					 costs.
"Community development financial institution" means a
					 financial institution certified by the U.S. Department of the Treasury as a
					 community development financial institution. (12 CFR
					 1805.201).
"Eligible microbusiness" means any microbusiness that
					 satisfies the relevant eligibility criteria set forth at
					 N.J.A.C.
					 19:31-5.3 for direct financial assistance
					 from the Authority.
"Eligible small business" means any small business that
					 satisfies the relevant eligibility criteria set forth at subsection (b) of
					 section 85 at
					 P.L.
					 2020, c. 156
					 (N.J.S.A.
					 34:1B-352) and N.J.A.C. 19:31E-1.3.
"Full-time employee" means:
1. A person:
i. Who is employed by a business for consideration for at
					 least 35 hours a week and whose wages are subject to withholding as provided in
					 the New Jersey Gross Income Tax Act,
					 N.J.S.A.
					 54A:1-1 et seq.; or
ii. Who is employed by a professional employer organization
					 pursuant to an employee leasing agreement between the business and the
					 professional employer organization for at least 35 hours a week and whose wages
					 are subject to withholding as provided in the New Jersey Gross Income Tax Act,
					 N.J.S.A.
					 54A:1-1 et seq.; or
iii. Who is a partner of a business who works for the
					 partnership for at least 35 hours a week and whose distributive share of
					 income, gain, loss, or deduction, or whose guaranteed payments, or any
					 combination thereof, is subject to the payment of estimated taxes, as provided
					 in the New Jersey Gross Income Tax Act,
					 N.J.S.A.
					 54A:1-1 et seq.; or
iv. Who is a resident of another state and would be
					 eligible under subsections i, ii, or iii above, but whose income is not subject
					 to the New Jersey Gross Income Tax Act,
					 N.J.S.A.
					 54A:1-1 et seq., due to a reciprocity
					 agreement with the other state.
2. The Authority may determine a different number of hours
					 a week or other standard of service generally accepted by custom or practice as
					 full-time employment for paragraph 1 above.
3. "Full-time employee" shall not include any person who
					 works for the business as an independent contractor or on a consulting
					 basis.
"Fund" means the Main Street Recovery Finance Fund
					 established under the Main Street Recovery Finance Program pursuant to
					 section
					 84 of
					 P.L.
					 2020, c. 156
					 (N.J.S.A.
					 34:1B-351).
"Home-based business" means a business that does not have a
					 separate entrance for commercial customers and that requires customers to enter
					 the residential portion of the property in order to conduct business, provided
					 that bed and breakfast establishments are not considered home-based
					 businesses.
"Microbusiness" means a business, including non-profit
					 entities, that produces goods or provides services and has fewer than 10
					 full-time employees and annual gross revenue of less than $ 1,500,000 at the
					 time of application for a loan or grant under the program. The business shall
					 have a physical location in the State, provided the location cannot be
					 residential, unless the location is a home-based business.
"Microbusiness lenders" means community development
					 financial institutions, minority depository institutions, or other eligible
					 lenders.
"Minority depository institution" means any Federally
					 insured depository institution that is listed on the Federal Deposit Insurance
					 Corporation's Minority Depository Institutions List, which is available on the
					 Federal Deposit Insurance Corporation's website.
"Other eligible lender" means a zone development
					 corporation as defined in section 3 of P.L. 1983, c. 303 (N.J.S.A.
					 52:27H-62), that is located in a municipality
					 with a population greater than 100,000. It also means other nonprofit lenders,
					 such as an economic development corporation or community development
					 corporation. To be an other eligible lender, the lender shall have a minimum of
					 10 years of experience in lending to microbusinesses.
"Product" means a sub-program established by the Authority
					 under the Program to provide a particular type of financial assistance to one
					 or more categories of eligible entities.
"Program" means the Main Street Recovery Finance Program
					 established pursuant to
					 section
					 84 of
					 P.L.
					 2020, c. 156
					 (N.J.S.A.
					 34:1B-351).
"Qualified opportunity zone" means a Federal population
					 census tract in this State that was eligible to be designated as a qualified
					 opportunity zone pursuant to 26 U.S.C. § 1400Z-1.
"Small business" means a business, including non-profit
					 entities, engaged in the conduct of a trade or business in this State that
					 qualifies as a "small business concern" within the meaning of the Federal Small
					 Business Act, Pub. L. 85-536 (15 U.S.C. § 631 et seq.) for the purpose of
					 the small business's eligibility assistance from the United States Small
					 Business Administration. The Authority shall determine whether a business is a
					 "small business" based solely on the applicant and shall not consider any
					 affiliates or other businesses related to the applicant. The business shall
					 have a physical location in the State, provided the location cannot be
					 residential unless the location is a home-based business.
"Soft costs" means all costs associated with financing,
					 design, engineering, legal, or real estate commissions, including, but not
					 limited to, architect fees, permit fees, loan origination and closing costs,
					 construction management, freight and shipping delivery, early lease termination
					 costs, air fare, mileage, tolls, gas, meals, packing material, marketing,
					 temporary signage, incentive consultant fees, Authority fees, loan interest
					 payments, escrows, or other similar costs.