New Jersey’s alcoholic beverage manufacturers have been looking for more support from the state government, and this month, wineries and vineyards received some good news. Recognizing the rise of agrotourism and increased interest for locally-made alcoholic beverages, New Jersey has enacted a new law requiring the New Jersey Economic Development Authority (EDA) to provide a loan program for wineries and vineyards.
Commercial farms that have a plenary winery license or farm winery license, as well as vineyards, will be able to take advantage of the new program by obtaining loans with favorable terms for qualified capital expenses. Qualified capital expenses include expenditures for the purchase or improvement of land, improving infrastructure, and modernization or purchase of machinery and equipment, such as barrels, bottling equipment, corkers, fermenters, fruit plants, hoses, pumps, and seeders.
Prior versions of the bill stated that loans would range from $10,000 – $100,000 and bear interest between 3-5%, however, that part of the bill was rejected by the Governor as too restrictive. The law as enacted does not specify the terms of the loans, but could be even more favorable. The EDA will ultimately determine the terms of the loans.
If you are looking to expand or improve your winery, the new loan program may be a great source for necessary capital.
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