New JerseyA5016221st Legislature (2026-2027)HouseWALLET

Establishes program in EDA to encourage employee ownership awareness and provide funding and advisory support.

Sponsored By: Al Barlas (Republican), Roy Freiman (Democratic), Lisa Swain (Democratic), Shirley K. Turner (Democratic), Andrew Zwicker (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Study grants for employee-owned business transitions

The law creates an employee ownership transition program within the New Jersey Economic Development Authority, with a nine-member advisory committee. Eligible businesses can get a one-time study grant covering 90% of approved costs, capped at $35,000. An approved contractor must conduct the study. Contractors approved under New Jersey's existing Employee Stock Ownership Plan Assistance Program qualify automatically after completing the required study. A separate assistance fund supports grants, education, outreach, and technical help. It accepts appropriated or otherwise available money and investment returns; the law sets no funding amount.

Low-interest loans for employee-owned business transitions

The New Jersey Economic Development Authority must maintain a revolving loan fund whose money does not expire. It may offer low-interest loans to eligible or participating businesses and other borrowers it approves. Loans support majority employee ownership transitions, reasonable transaction needs, and post-transition needs that support long-term business stability. The fund accepts state and federal money, charitable gifts, internal transfers, and investment returns; no funding amount, loan amount, or interest rate is set. The authority must appoint a qualified fund manager or financial intermediary to advise on administration. It can use no more than 5% of yearly loan interest and other charges to offset administrative costs.

Sponsors & Cosponsors

Cosponsors

Katie Brennan
Democratic • House
Angela V. McKnight
Democratic • Senate
Gerry Scharfenberger
Republican • House
Britnee N. Timberlake
Democratic • Senate
Larry Wainstein
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 162 • No: 33

Senate vote • 6/30/2026

3RDG FINAL PASSAGE

Yes: 36 • No: 4

House vote • 6/30/2026

CONCUR IN SA

Yes: 62 • No: 15

House vote • 6/11/2026

3RDG FINAL PASSAGE

Yes: 64 • No: 14 • Other: 1

Actions Timeline

Governor: APP
9/4/2026Governor
Approved by Governor — P.L.2026, c.83.
9/4/2026Governor
Passed Assembly, PBH — (62-15-0)
6/30/2026House
Received in Assembly, 2RAC
6/30/2026House
Passed Senate — (36-4)
6/30/2026Senate
Substituted for S4218 (1R)
6/30/2026Senate
REP/SCA, 2nd Reading in Senate
6/24/2026Senate
Received in Senate, Referred to Senate Budget and Appropriations Committee
6/11/2026Senate
Passed Assembly — (64-14-1)
6/11/2026House
Reported, 2nd Reading in Assembly
6/8/2026House
TRANS Assembly Appropriations Committee
6/8/2026House
Reported, Referred to Assembly Community Development and Women's Affairs Committee
6/4/2026House
Introduced, 1st Reading in Assembly, Referred to Assembly Commerce and Economic Development Committee
5/7/2026House

Bill Text

7/2/26; 1R
7/2/2026
HTML PDF
Senate Budget and Appropriations (6/24/26 1R)
7/1/2026
HTML PDF
Senate Budget and Appropriations Substitute (6/24/26)
6/26/2026
HTML PDF
6/12/26; as introduced
6/12/2026
HTML PDF
As Introduced
6/12/2026
HTML PDF
Assembly Appropriations Substitute (6/8/26)
6/9/2026
HTML PDF
Assembly Commerce and Economic Development Substitute (6/4/26)
6/5/2026
HTML PDF

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