The Senate Economic Growth Committee advanced legislation sponsored by Senator Joe Pennacchio (R-Morris) aimed at helping small businesses grow by giving them a chance to compete for state and federal contracts.

Sen. Joe Pennacchio’s legislation would create a new program in the NJEDA to help small businesses grow and compete for government contracts. (NJEDA)

The legislation, S-123, would establish a “Small Business Bonding Readiness Assistance Program” through the Economic Development Authority, which would provide support to small businesses and help them meet surety bonding requirements so that they can qualify for government contracts.

“There are countless small businesses in our state that have difficulty competing for government contracts because their size can cause problems qualifying for certain requirements, like bonding,” Senator Pennacchio said. “This legislation will help small business meet those requirements and help them compete.”

We need to promote #NJ small businesses by ensuring they are equipped to compete for public contracts https://t.co/VWdNZWYtRB

— Sen. Joe Pennacchio (@joepennacchio) May 5, 2016

The program is designed to increase the capacity of small businesses by improving their financial presentation, operational efficiency profitability, bonding capacity and knowledge through consulting sessions and workshops. The authority would be required to establish a special nonlapsing revolving fund to provide grant funding to small businesses that participate in the program.

“This legislation is a win-win for small businesses and for the taxpayers that fund public projects,” Senator Pennacchio said. “More businesses will qualify for contracts, creating new jobs and growth in the private sector, and having more companies compete for bids will help drive down the cost of public contracts.”