Bipartisan legislation sponsored by Sen. Steven Oroho to expand the eligibility of dairy farmers and qualifying farming operations for small business loans was recently signed into law.
Oroho’s bill, S-3955, now expands the eligibility of the New Jersey Economic Development Authority (EDA) small business loan program to specifically include certain farming operations and qualified dairy farmers. It will permit farmers to pool their resources to purchase farm equipment of any kind used in the production of their businesses, providing an additional source of capital by combining their resources to purchase expensive equipment.
The EDA is able to provide more favorable terms than the more traditional lenders.
Under the law, an “eligible farming operation” is two or more independent business entities that are engaged in farming operations in New Jersey, that are applying together for participation in the loan program. A “qualified dairy farmer” produces value-added dairy products, such as cheese, cultured sour cream, yogurt, kefir, butter, ice cream, evaporated milk, condensed milk, and concentrated milk.