68. a. There is established the “New Jersey Innovation Fellows Program” within the authority for the purpose of providing seed funding to teams of entrepreneurs, through the disbursement of fellowship grants, and facilitating economic growth and job creation in eligible municipalities. The award of a fellowship grant to a team of entrepreneurs shall be limited to $350,000 per team and shall be used as income-replacement for entrepreneurs who leave the workforce to open and operate a business in an eligible municipality.

b. The chief executive officer shall award fellowship grants through a competitive grant solicitation to teams of no less than three entrepreneurs, in which at least half of the team members are first time entrepreneurs, with well-written business plans who:

(1) are seeking to open and operate a business in a targeted industry, which business is located in an eligible municipality;

(2) commit to working at the business on a full-time basis for two years next following receipt of the fellowship grant;

(3) participate in a mentorship program; and

(4) pay gross income tax pursuant to N.J.S. 54A:1-1 et seq. at the time of applying for the fellowship grant and remain New Jersey taxpayers during the time in which fellowship grants are disbursed and the next following two years. If any member of the original awarded team of entrepreneurs ceases to be a New Jersey taxpayer during the time in which fellowship grants are disbursed and the next following two years, the fellowship grant may be rescinded, and any amount paid may be recouped, by the authority.

c. A team of entrepreneurs seeking to participate in the program shall submit an application in a form determined by the chief executive officer. The application shall include information that the chief executive officer determines is necessary to administer the program.

d. The chief executive officer shall award fellowship grants in intervals determined by the chief executive officer following application approval and the submission of proof by a team of entrepreneurs that the team has fulfilled the eligibility requirements pursuant to subsection b. of this section and any other requirements determined by the authority. The submission of proof shall be subject to review and audit by the authority.

e. A team of entrepreneurs that includes at least one member who is a graduate of a New Jersey college or university or is a diverse entrepreneur, as defined in section 2 of P.L.1997, c.349 (C. 54:10A-5.29), and meets the eligibility requirements may receive a fellowship grant up to $400,000.

f. Within one year of the effective date of P.L.2021, c.160 (C. 34:1B-370 et al.), the authority shall undertake a disparity study analyzing the relative availability of seed money and capital for diverse entrepreneurs, as defined in section 2 of P.L.1997, c.349 (C. 54:10A-5.29), in this State and the authority’s historic support of such businesses. If recommended by the study, the authority shall establish policies, practices, protocols, and, if appropriate, minimum percentages of the funds to be set aside to eligible teams of entrepreneurs that include at least one diverse entrepreneur or one female entrepreneur. Regardless of whether the disparity study recommends a set-aside for diverse entrepreneurs, the authority may make up to 35 percent of the funds available for the award of fellowship grants to teams of entrepreneurs that include at least one member that either resides in a New Jersey State opportunity zone, as defined in section 45 of P.L.2020, c.156 (C. 34:1B-313), or is seeking to open and operate a business in an opportunity zone eligible census tract.

L.2021, c.160, s.68.