New Jersey “Bailing Out” Silicon Valley Bank, Green Energy Start-Ups? Legislators Want Answers from Governor & NJEDA

Keyport, N.J. – Assemblywoman Victoria Flynn and Assemblyman Gerry Scharfenberger (NJLD13) call on the New Jersey Economic Development Authority (NJEDA) to identify which New Jersey companies will benefit from the Governor’s recent pledge of $35 million of New Jersey taxpayer dollars to provide emergency assistance to companies impacted by the Silicon Valley Bank (SVB) fiasco. Since it is well known that SVB did business with a vast number of “green” businesses, it begs the question – is New Jersey about to embark upon a new subsidy program for companies that benefit from the green energy standards being imposed by this administration upon this State?

“There is something amiss here – why is New Jersey announcing an emergency allocation of funds over the weekend without any details as to which companies require this funding except for vague references to companies that are “innovative” or “emerging technology”? Given Silicon Valley Bank’s portfolio and the fact the green energy start-ups are heavily invested in by the institution, some of the constituents here in the shore communities are worried that the solar and wind companies stand to benefit from this bailout,” Assemblywoman Flynn stated. “I think it is important for the NJEDA to be clear as to which companies are about to receive $35 million in taxpayer dollars rather than making ambiguous references to companies that contribute to our “innovative ecosystem” and “the dynamism of our cities.”  New Jerseyans are just not buying why our State tax dollars should be used to address a problem that is likely to be addressed on the federal level.”

“Before a single dollar is spent by the NJEDA and the Governor, we want to know who is going to receive these grants and loans. New Jersey residents are facing some of the most overbearing financial weights in 40 plus years. Between skyrocketing inflation, rising costs at the grocery store and just overall higher costs of living day-to-day, taxpayers must not be put in a situation where they must now protect solar and wind companies because the Governor needs them to survive politically,” said Assemblyman Scharfenberger. “We need guarantees from Trenton that Governor Murphy does not intend to bailout any company involved just to keep his ‘green dream’ from turning into the nightmare that we have been warning against for years now.”

Currently, the Murphy Administration has only commented on which programs within NJEDA will be utilized to distribute these funds in the wake of the SVB collapse. The Legislators plan to follow this closely and update constituents as more details become available.