Lawmakers want state government to take the lead in helping small businesses whose owners have economic and social disadvantages by creating more opportunities for them to work with the state.  

Legislation that cleared a key Senate committee earlier this week calls for a new program to be administered by the Department of Treasury that would set up procurement goals for contracting with businesses owned by disabled veterans, members of the LGBTQ+ community and many other targeted groups. 

The same legislation — which has already been approved by the Assembly — seeks to foster more opportunities for the state to work with economically and socially disadvantaged business owners in several key industries. They include construction, architecture and engineering; professional services; goods and services; and information technology services, according to the bill. 

The measure has already won support from many influential state business groups, as well as other organizations, including those representing veteran-owned businesses.  

Sponsors say taking new action at the state level to help more economically and socially disadvantaged businesses succeed would generate long-lasting benefits for the New Jersey economy at a time when many businesses are still feeling the effects of the ongoing COVID-19 pandemic.  

“As we continue to recover from the pandemic, we must maximize our efforts to assist small businesses,” said Sen. Troy Singleton (D-Burlington).   

Aligning with Murphy’s goals 

Improving diversity and representation in state government has become a top priority during the tenure of Gov. Phil Murphy, a Democrat who took office in 2018 and was reelected in 2021.  

In addition to establishing the state’s Office of Diversity and Inclusion, Murphy also put in place New Jersey’s first-ever female-majority cabinet. His administration has also organized events aimed at fostering more opportunities for women, minority, veteran and LGBTQ+-owned businesses, and has also encouraged private-sector leaders in New Jersey to contract with a more diverse pool of suppliers. 

The legislation approved earlier this week by the Senate Budget and Appropriations Committee also seeks to create more contracting opportunities for businesses whose owners may be disadvantaged due to “color, ethnic origin, gender, sexual orientation, gender identity, or physical disability, which includes service-connected disabilities,” according to bill sponsors. 

‘This bill would go a long way in helping ensure greater opportunities and help hold agencies accountable.’ — Roslyne Shiao, AAPI Montclair

Under the bill, a business owner could also be “economically disadvantaged” if they can demonstrate that their ability to compete has been “impaired due to diminished capital and credit opportunities, as compared to others in the same or similar line of business who are not socially disadvantaged,” according to the sponsors.  

The business owner must also demonstrate a personal net worth that does not exceed a level established by Treasury, excluding equity in any personal residence or business for which the person is applying for certification, the sponsors said. 

Contracts with state agencies 

The bill would establish an annual goal for state contracting agencies for the purposes of working with and awarding contracts to the targeted businesses, as well as establish new guidelines for public institutions of higher education in New Jersey. It would also allow for the acceptance of “third-party certifications that show a business enterprise owner qualifies as socially and economically disadvantaged,” according to the bill.   

Roslyne Shiao, director of strategic initiatives for AAPI Montclair, cited disproportionate losses suffered by minority-owned businesses during the COVID-19 pandemic as she testified in favor of the bill.  

“Asian Americans are proud to contribute to our state’s success throughout all of our sectors. However, due to historical exclusion, groups like ours have not had access to the same opportunities,” Shiao said. “This bill would go a long way in helping ensure greater opportunities and help hold agencies accountable.”   

Citing recent increases in federal funding for infrastructure improvements, Col. Jeff Cantor of the New Jersey State Veterans Chamber of Commerce said the legislation would open new opportunities for businesses owned by disabled veterans in New Jersey at a crucial time.    

“Until this bill gets passed and signed into law, disabled veterans will be shut out of all this opportunity,” Cantor said.