In a continuing effort to get more (dormant) liquor licenses into the market, the New Jersey Economic Development Authority is developing a new grant program that could defray up to $100,000 of the costs to obtain a currently unused license.
The grant program, pending approval from the EDA board, would aim to award $10 million in total grants. Businesses would be eligible to earn up to $100,000 — but not more than 50% of the cost.
The EDA Liquor License Acquisition program is currently being drafted in consultation with the Division of Alcoholic Beverage Control and will coincide with relevant provisions in the law as they take effect.
The EDA will look to take this new grant product to the board in the fall (the next scheduled meeting is Sept. 12). It is expected to be available to take applications in early 2025. Earlier this month, the ABC released regulatory guidance to provide more information on intermunicipal license transfers and new shopping mall licenses.
Gov. Phil Murphy, who signed a law in January that aimed to get more liquor licenses activated (essentially, dormant licenses needed to be used or transferred/sold), said the EDA program would be a big help. There are 1,379 inactive licenses within the state’s system.
“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,” he 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.”
It is unclear if those who already have obtained a license — or are in the process of doing so — would be eligible to receive an after-the-fact award.
EDA CEO Tim Sullivan said the program would be another value add offered under the Main Street Recovery program established under the Economic Recovery Act of 2020.
“Under Gov. 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,” he said. “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.”
