As the lame duck legislative session was winding down in January, Gov. Phil Murphy signed a bill that was aimed at overhauling what he called an “antiquated” liquor license system.
This had been a focus of his administration's for most of 2023 and while the legislation wasn’t exactly what he wanted, Murphy considered it a win.
Now, the state’s Economic Development Authority is getting in on the action. The agency is developing a new grant program to provide funding for small businesses that have obtained an inactive plenary retail consumption liquor license. The program, once finalized, would need authorization from the authority's board.
This $10 million program is part of a larger group of Main Street Recovery programs established under the Economic Recovery Act of 2020.
Murphy’s new law increases availability of licenses statewide by bringing inactive licenses back to the market. There are 1,379 inactive licenses within the state’s system, according to the EDA.
In a statement announcing the EDA’s new program, Murphy said that he was “proud to sign into law legislation that will overhaul New Jersey’s antiquated liquor license laws” and that this will be another step to “remove these barriers for our small businesses, so that we may provide them financial peace of mind and the opportunity to flourish.”
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How would the program help NJ small businesses attain liquor licenses?
The new program would award grants of up to $100,000 to businesses, though that can’t be more than half of the cost of the license itself. Applicants also need to already have the license and must be open for at least a year before applying. Applications will be accepted on a rolling basis for three years or until the money is used up.
The agency said the proposed liquor license program will “function as a reimbursement, awarding grants to restaurants for up to $100,000 or no more than 50% of the purchase price of the license” and that “more details will be available pending approval from the NJEDA Board this fall.”
“Under Governor Murphy’s leadership, the NJEDA is focused on ensuring small business owners have every tool necessary to succeed and providing opportunities for them to grow and thrive,” EDA Chief Executive Officer Tim Sullivan said in a statement. “Giving restaurants the opportunity to transform their business by aiding in the purchase of a liquor license will have a major impact on their long-term economic success, will relieve unnecessary financial burdens, and further increase the vitality of our downtowns and main streets.”
Katie Sobko covers the New Jersey Statehouse. Email: sobko@northjersey.com
This article originally appeared on NorthJersey.com: New state program aims to ease NJ small businesses' access to liquor licenses
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