By Joshua Burd
State officials are developing a new grant program that would help small businesses defray the cost of a liquor license purchased under a landmark law enacted earlier this year.
Under the proposal, the Economic Development Authority will award up to $100,000 but no more than 50 percent of the purchase price to applicants that recently acquired an inactive plenary retail consumption license. That figures to impact many of the nearly 1,400 inactive licenses that were the target of a law signed in January by Gov. Phil Murphy, which aims to return them to circulation and spur economic development as part of a long-awaited legal overhaul.
The EDA is drafting its Liquor License Acquisition program in consultation with the state’s Division of Alcoholic Beverage Control, noting that it will coincide with relevant provisions in the law as they take effect. It hopes to take the grant platform to its board this fall and expects to take applications in early 2025.
“Earlier this year I was proud to sign into law legislation that will overhaul New Jersey’s antiquated liquor license laws that have been a burden to small businesses across the state for far too long,” Murphy said. “Now, we are continuing to take steps to remove these barriers for our small businesses, so that we may provide them financial peace of mind and the opportunity to flourish.”
The announcement follows the recent release of ABC’s regulatory guidance on intermunicipal license transfers and new shopping mall licenses that will be made available under the legislation. The measure, which would also ease restrictions on New Jersey’s breweries and distilleries, aims to lower the costs and boost the supply of licenses by forcing the sale or activation of those that are associated with a specific location but not in use or those that are privately owned but not attached to a specific location.
To be eligible for the proposed EDA grant, an establishment must be open and operating for 12 months prior to the application and must meet the U.S. Small Business Administration’s definition of a small business. The authority will accept applications on a rolling basis for three years or until the program’s $10 million allocation is exhausted.
“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,” said Tim Sullivan, the EDA’s CEO. “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.”
