NJ law provides certification to LGBTQ+ businesses, unlocking contracting opportunities

Daniel Munoz, NorthJersey.com

Gov. Phil Murphy signed a bill into law on Wednesday that will codify an existing process for certifying LGBTQ+-owned businesses — a move proponents say unlocks local contracting opportunities for those employers and makes them eligible for state agency initiatives.

Although Murphy signed an executive order in May 2022 enacting such a process, supporters say the legislation gives it the power of state law, allowing it to remain in place after the current governor leaves office.

The law "sends a clear message to all businesses looking to invest in New Jersey that we are a welcoming state,” said Gus Penaranda, executive director of the New Jersey Pride Chamber of Commerce.

The state already offered a certification program for businesses owned by women, minorities and veterans.

A new state law codifies an existing process for certifying LGBTQ-owned businesses — a move proponents say unlocks local contracting opportunities for those employers and makes them eligible for state agency initiatives.
A new state law codifies an existing process for certifying LGBTQ-owned businesses — a move proponents say unlocks local contracting opportunities for those employers and makes them eligible for state agency initiatives.

Certified businesses’ contact information gets posted to public databases used by contracting authorities. So far, the New Jersey Treasury Department has certified 141 LGBTQ+ businesses.

“By codifying this certification program in statute, we ensure that the opportunity to proudly identify as an LGBTQ+-owned business will last for many years to come,” Murphy said in a Wednesday statement accompanying the bill’s signature.

Murphy’s office said the goal of the legislation and the executive order are to encourage LGBTQ+ companies to do business in New Jersey.

To qualify, businesses must be solely owned by an LGBTQ+ person, or at least 51% of owners in partnerships, joint ventures and corporations must identify as LGBTQ+. These owners must be substantially involved in ongoing affairs of the business. The businesses must also exhibit a need for resources.

The federal Small Business Administration estimated in 2022 that 1.4 million LGBTQ+-owned businesses contribute a combined $1.7 trillion to the U.S economy each year.

Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.

Email: munozd@northjersey.com; Twitter:@danielmunoz100

This article originally appeared on NorthJersey.com: NJ law provides certification to LGBTQ+ businesses

Advertisement