>>> FUNDING FOR "NJ BUSINESS BEAT" PROVIDED BY NEW JERSEY CHAMBER OF COMMERCE, WORKING TO KEEP NEW JERSEY IN BUSINESS.

ONLINE AT NJCHAMBER.COM.

NJBIA HAS BEEN THE VOICE OF BUSINESS FOR MORE THAN 110 YEARS, AND IS BUILT TO SERVE OUR MEMBERS IN TODAY'S NEW NORMAL.

AND NJCU SCHOOL OF BUSINESS, A GAME CHANGING FORCE OFFERING PROGRAMS LIKE FINANCIAL TECHNOLOGY, WHERE BUSINESS ANALYTICS AND DATA SCIENCE.

WE'RE STEPS AWAY FROM THE EXCHANGE PLACE PATH TRAIN IN JERSEY CITY AND MINUTES FROM WALL STREET.

LEARN MORE AT NJCU.EDU/GAMECHANGER.

>>> THIS WEEK ON "NJ BUSINESS BEAT."

WE HAVE A DEAL, BUT NOT EVERYBODY IS HAPPY.

WE BREAK DOWN THE $46 BILLION BUDGET AND WHAT THE BUSINESS COMMUNITY THINKS.

PLUS, IT'S NATIONAL HOME OWNERSHIP MONTH, BUT IS OWNING A HOME THE RIGHT PATH FOR EVERYONE?

WE BREAK DOWN THE BENEFITS AND PITFALLS OF BUYING OR RENTING IN NEW JERSEY.

AND MILLIONS IN RELIEF.

GOVERNOR MURPHY SAYS THE LIFELINE FOR NEW JERSEY BUSINESSES AS OWNERS TRY TO RECOVER FROM PANDEMIC LOSSES.

THAT'S AHEAD ON "NJ BUSINESS BEAT."

>> Announcer: THIS IS "NJ BUSINESS BEAT," WITH RHONDA SCHAFFLER.

>>> HELLO, I'M RHONDA SCHAFFLER.

THANKS FOR JOINING US ON "NJ BUSINESS BEAT."

IF YOU'RE WATCHING ON YOUTUBE, MAKE SURE YOU SUBSCRIBE TO OUR NJ SPOTLIGHT NEWS YOUTUBE CHANNEL TO GET ALERTED WHEN WE POST NEW EPISODES AND CLIPS.

>>> A NEW STATE BUDGET FOR NEW JERSEY.

LAWMAKERS GAVE FINAL APPROVAL TO A $46.4 BILLION SPENDING PLAN THIS WEEK, SENDING IT ALONG TO GOVERNOR MURPHY.

UNLIKE PREVIOUS YEARS, THE BUDGET PROCESS WAS EASIER.

THE STATE HAD A $10 BILLION PLUS REVENUE WINDFALL, THANKS TO NEW FEDERAL RELIEF MONEY AND STRONGER TAX REVENUES.

THE BUDGET INCLUDES SOME TAX RELIEF.

$500 IN DIRECT REBATE CHECKS FOR LOW AND MIDDLE INCOME FAMILIES.

IT INCLUDES LARGER HOMESTEAD REBATES, TO.

THE STATE TO MAKE A PAYMENT TO THE STATE PENSION SYSTEM AND $2.5 BILLION WILL BE USED TO PAY DOWN DEBT.

WHILE BUSINESS GROUPS SAY THERE ARE PLUSES IN THE BUDGET, THEY AREN'T COMPLETELY SATISFIED.

WE SPOKE WITH NEW JERSEY CHAMBER OF COMMERCE'S TOM BARACKEN, WHO IS A TRUSTEE.

>> THEY ARE THINGS WE'VE ASKED FOR THAT HAVE YET TO BE ADDRESSED, WHICH WERE TO TAKE THE BURDEN OFF THE BUSINESS COMMUNITY REGARDING UNEMPLOYMENT INSURANCE FUND BY PAYING OFF THAT DEBT AND REPLENISHING THE FUND WITH AMERICAN RESCUE PLAN DOLLARS, TO PROVIDE BACK-TO-WORK BONUSES FOR BUSINESSES TO GET THE ISSUE OF THE JOB OPENINGS -- TO HELP WITH THE ISSUE OF JOB OPENINGS, AND TO PROVIDE WORKING CAPITAL FOR THE BUSINESS COMMUNITY.

>> THE STATE IS SPENDING MORE MONEY TO SHORE UP NEW JERSEY SMALL BUSINESSES.

GOVERNOR MURPHY HAS SIGNED A SERIES OF BILLS PROVIDING ANOTHER $235 MILLION IN SMALL BUSINESS RELIEF.

THE GOVERNOR SIGNED THE BILLS AT A RESTAURANT IN LONG BRANCH SAYING THE NEW FUNDS WILL HELP NEW JERSEY BUSINESSES COME BACK FROM THE PANDEMIC STRONGER THAN BEFORE.

>> FOLKS ARE GETTING BACK TO WORK IN THE JOBS THEY LOVE, IN THE COMMUNITIES THEY LOVE.

SHOPPERS CAN NOW FREELY ENTER THEIR FAVORITE STORES.

OUR RESTAURANTS ARE BACK TO FULL CAPACITY.

NOW WITH THESE ADDITIONAL SUPPORTS WE'RE SIGNING TODAY, WE'LL BE ABLE TO LIFT UP THESE BUSINESSES AND THE COMMUNITIES THEY SUPPORT EVEN HIGHER.

>> ONE NEWARK-BASED COMPANY HAS MADE FEEDING THE HUNGRY A PRIORITY.

AUDIBLE LAUNCHED AN INITIATIVE KNOWN AS NEWARK WORKING KITCHEN DURING THE HEIGHT OF THE COVID-19 PANDEMIC.

THEY PAID A GROUP OF RESTAURANTS TO MAKE MEALS FOR THOSE FACED WITH FOOD INSECURITY.

THE MONTH THE PROGRAM DELIVERED IT'S ONE MILLIONTH YEAR.

I SAT DOWN THE AYISHA GLOVER.

WORKING KITCHENS HAD A MAJOR MILESTONE THIS MONTH.

HOW DID YOU GET THERE?

>> A LOT OF HARD WORK, A LOT OF PATIENCE, A LOT OF DEDICATION.

WE'VE BEEN RUNNING THE PROGRAM SINCE APRIL OF 2020 EVERY SINGLE WEEK, SO IT WAS A PRETTY BIG MILESTONE AND CELEBRATION TO BE ABLE TO REACH A MILLION MEALS DISTRIBUTED TO NEWARK RESIDENTS WHO ARE MOST IN NEED AND A MILLION OF THOSE MEALS BEING SOURCED FROM LOCAL RESTAURANTS.

SO IT'S BEEN A LONG ROAD, BUT IT HAS REALLY AFFIRMED OUR ROLE IN NEWARK, WHICH IS AUDIBLE'S HEAD QUARTER CITY.

>> AND IS THE WORK CONTINUING?

>> THE WORK CONTINUES.

FORTUNATELY, WE ARE ALL -- WHEN I SAY WE, I MEAN AUDIBLE AND OUR CORPORATE PEERS ARE PLANNING FOR OUR RETURN.

SO THE PROGRAM WILL LIKELY SHIFT A BIT.

IT WASN'T MEANT TO CONTINUE IN PERPETUITY, BUT REALLY SERVE AS A STOPGAP MEASURE AND A COVID RESPONSE SOLUTION.

AND SO SINCE WE ARE REOPENING, THERE IS MORE TRAFFIC, MORE BOOTS ON THE GROUND, MORE ACTIVITY, MORE LIFE, WE'LL FIND A DELICATE BALANCE.

>> WHY HAVE CORPORATIONS LIKE AUDIBLE REALLY LASER FOCUSED ON COMMUNITY NEEDS DURING THE PANDEMIC?

>> FOR US, IT WAS A WAY TO REAFFIRM OUR COMMITMENT.

WE COULD HAVE WRITTEN A TRADITIONAL CHECK TO SUPPORT FOOD RELIEF, BUT WE'RE A LITTLE BIT INNOVATIVE, A LITTLE DISRUPTIVE.

SO WE WANTED TO JOIN FORCES WITH WORLD CENTRAL KITCHEN AND MARCUS SAMUELSON, WHO HAS A RESTAURANT IN NEWARK, AND REALLY LAUNCH SOMETHING THAT COULD REALLY HELP SUSTAIN ALL OF THE ECONOMIC GAINS THAT THE CITY HAS RECENTLY MADE, RIGHT?

SO IT WOULD BE GREAT IF, AS WE ALL RETURN AND THE RESIDENTS WHO ARE ALREADY HERE DO NOT HAVE TO KIND OF LOOK AROUND AND SEE VACANT STOREFRONT.

SO NEWARK WORKING KITCHENS WAS AS MUCH ABOUT JOB RETENTION OF THE RESTAURANTS AND DELIVERING FOOD TO PEOPLE WHO NEED IT THE MOST, AS IT WAS REALLY ABOUT KIND OF ENSURING ALL THE ECONOMIC GAINS THAT HAVE BEEN MADE UNDER THE MAYOR'S RELATIONSHIP, CONTINUE.

>> WHEN YOU TALK ABOUT THE EMPTY STOREFRONT IN YOUR PRIOR ROLE WORKING FOR THE CITY, THAT WAS SOMETHING THAT HE HELPED CHANGE, RIGHT, TO HELP GET THOSE BUSINESSES IN THERE?

AS A CORPORATE PARTNER, HOW CAN YOU HELP THE CITY GO BACK TO THE WAY IT WAS BEFORE?

>> GREAT QUESTION, FOR SURE.

SO I TOOK THIS KIND OF PERSONAL, RIGHT?

WITH MY FORMER HAT ON, HELPING TO LEAD ECONOMIC DEVELOPMENT IN THE CITY OF NEWARK, ONE OF THE THINGS THAT EVEN ATTRACTED ME TO AUDIBLE WAS NEWARK WORKING KITCHENS AND TO SEE HOW INTENTIONAL THEY HAD BEEN ABOUT THE CITY'S ECONOMIC GROWTH AND THE CITY'S ECONOMIC RECOVERY.

SO WHAT WE INTEND TO DO IS CONTINUE TO WORK WITH THE CITY TO ENSURE THAT AS WE RECOVER, WE RECOVER EQUITABLY AND THAT WE'RE REALLY LEVERAGING OUR POSITION IN THE CITY OF NEWARK.

WE ARE THE FASTEST GROWING EMPLOYER HERE, RIGHT?

SO HOW DO WE REALLY MAXIMIZE WHAT OUR ECONOMIC AND SOCIAL IMPACT CAN BE?

>> IT'S BEEN GREAT TO CATCH UP WITH YOU.

THANK YOU.

>> THANK YOU, RHONDA.

>>> SOME NEW JERSEY TAXPAYERS WILL BE GETTING EXTRA MONEY SOON.

THE IRS WILL START DISTRIBUTING THE EXPANDED CHILD TAX CREDIT NEXT MONTH AND HAS SENT LETTERS TO THOSE WHO MAY BE ELIGIBLE FOR THE EXTRA FUNDS, THANKS TO A FEDERAL COVID RELIEF PROGRAM.

PREVIOUSLY THE CHILD TAX CREDIT WAS $2,000.

BUT THE PAYOUT IS BEING BOOSTED TO BETWEEN $3,000 OR $3,600 PER CHILD DEPENDING ON THEIR AGE.

THE NJCPA IS TRYING TO GET WORD OUT ABOUT THIS, ACCORDING TO RALPH ALBERT THOMAS, THE CEO AND EXECUTIVE DIRECTOR.

>> IT CERTAINLY WILL HELP GIVEN THE PANDEMIC THAT WE'RE STILL IN, AND IT WILL HELP THEM IN SOME WAY, SHAPE OR FORM TO HAVE A LITTLE EXTRA MONEY COMING IN, PARTICULARLY IF THEY'VE BEEN OUT OF WORK OR UNEMPLOYED, THIS IS WHAT THEY CALL A NONREFUNDABLE TYPE CREDIT.

SO THEY WILL BE ABLE TO TAKE ADVANTAGE.

>> JUNE IS HOME OWNERSHIP MONTH, BUT THE HOUSING MARKET MAY BE COOLING A BIT AFTER A RECENT BOOM.

THE NUMBER OF EXISTING HOME SALES NATIONALLY HAS BEEN SLIPPING OVER THE PAST FEW MONTHS, AS SKY-HIGH PRICES HAVE FORCED SOME WOULD-BE BUYERS TO STAY ON THE SIDELINES.

PERHAPS SOME SHOULD STAY THERE PERMANENTLY.

HOME OWNERSHIP DOESN'T MAKE SENSE FOR EVERYONE.

IN FACT, RENTING MAY BE A BETTER OPTION.

TO EXPLORE THIS FURTHER, WE SPOKE WITH THE CEO OF UNLIMITED FINANCIAL GROUP BASED IN SOMERSET.

HOME PRICES ARE SOARING IN NEW JERSEY.

HOW DO FIRST-TIME HOME BUYERS MAKE SURE THEY AREN'T GOING TO GET IN OVER THEIR HEAD?

>> YOU REALLY NEED TO DO SOME SOUL-SEARCHING TO FIND OUT WHAT FINANCIAL HABITS YOU HAVE.

SO IF YOU'RE USED TO SPENDING A GOOD AMOUNT OF YOUR DISPOSE AL INCOME ON LUXURIES AND NOT REALLY USED TO SAVING FOR RESERVES, EMERGENCY FUNDS AND THINGS OF THAT NATURE, THOSE ARE THINGS THAT YOU REALLY NEED TO BECOME COMFORTABLE WITH IF YOU'RE GOING TO BE A HOME BUYER, BECAUSE AS MOST HOME BUYERS CAN RELATE TO, THEY KNOW THAT THE MINUTE THEY BUY A HOME, THINGS GO BUMP IN THE NIGHT IN TERMS OF, YOU KNOW, A PIPE BURSTING DURING THE WINTER-TIME OR ROOF SHINGLES STARTING TO LOOSEN UP OR OTHER ISSUES.

SO DEFINITELY HAVING ADEQUATE SAVINGS AND RESERVES AS A FIRST-TIME HOME BUYER AND REALLY MAKING SURE THAT YOU UNDERSTAND THE TRUE COST OF OWNING THE HOME IS A VERY IMPORTANT AMOUNT OF KNOWLEDGE TO HAVE PRIOR TO MAKING THE PURCHASE.

>> THAT'S A GREAT POINT BECAUSE THAT OFTEN DOESN'T COME UP IF YOU'RE IN DISCUSSIONS ABOUT BUYING A HOME.

GENERALLY SPEAKING, WHAT SORT OF AMOUNT OF YOUR INCOME SHOULD YOU BE PUTTING TOWARD HOUSING, WHETHER IT'S HOME OWNERSHIP OR RENTING?

>> THE WAY I LOOK AT IT IS ALWAYS FOCUSED ON THE NUMBER THREE, AND THREE AS IN YOU WANT TO MAKE SURE THAT FOR A RENTER THAT YOU'RE NOT COMMITTING MORE THAN 30% OF YOUR DISPOSE AL INCOME TOWARD YOUR -- YOUR MONTHLY GROSS INCOME TOWARD YOUR RENT.

AND GENERALLY WHEN YOU'RE BUYING A HOME THE NUMBER IS SLIGHTLY HIGHER.

I TEND TO SAY STAY WITH A THIRD.

SO ESSENTIALLY YOUR HOUSING COSTS, WHICH INCLUDES YOUR MORTGAGE PAYMENT, WHICH IS THE PRINCIPLE AND INTEREST PORTION, THE PROPERTY TAXES, THE HOMEOWNERS INSURANCE, YOUR UTILITIES AND MAINTENANCE OF THE HOME SHOULD NOT EXCEED ONE-THIRD OF YOUR GROSS MONTHLY.

>> IN TERMS OF BUILDING WEALTH, HOMES NOT JUST AS A PLACE TO LIVE, BUT THEY HOPE THEY'RE GOING TO APPRECIATE OVER THE YEARS.

AND FOR RENTERS, OF COURSE, THEY WOULD NOT HAVE THAT.

HOW CAN A RENTER BUILD WEALTH IN THE SAME WAY THAT SOMEBODY WHO OWNS A HOME CAN DO IT?

>> THAT'S DEFINITELY A CHALLENGING ISSUE WHEN YOU'RE A RENTER, BUT THERE ARE SOME OPTIONS OUT THERE.

I MEAN, OBVIOUSLY, SAVING THE DIFFERENCE THAT YOU OTHERWISE WOULD HAVE EXPENDED ON MORTGAGE AND HOME OWNERSHIP MAINTENANCE CAN BE INVESTED IN -- I WOULD SAY IN INDEX FUNDS, AS WELL AS OTHER SUITABLE INVESTMENTS.

OTHER, AS SOME RENTERS SOMETIMES DO, THEY DO INVEST IN RENTAL REAL ESTATE AS A WAY OF BUILDING UP A FORM OF PASSIVE INCOME, AS WELL AS ENJOYING THE RELATIVE PRICE APPRECIATION OF THAT REAL PROPERTY.

>> IT'S BEEN SUCH A PLEASURE TO SPEAK WITH YOU AGAIN AND HELP US SORT OUT WHAT TO DO WITH THESE HOUSING PRICES AS THEY CONTINUE TO SOAR.

THANK YOU SO MUCH.

>> MY PLEASURE.

THANK YOU SO MUCH FOR HAVING ME.

>>> ON "NJ BUSINESS BEAT," WE FOCUS ON ISSUES THAT MATTER TO BUSINESSES AND WORKERS, TALK TO INNOVATORS AND ENTREPRENEURS AND LOOK AT EMERGING INDUSTRIES IN NEW JERSEY.

THIS WEEK AS WE WRAP UP OUR SEASON, WE LOOK BACK AT SOME OF OUR MOST INTERESTING INTERVIEWS FROM BUSINESS INFLUENCERS AND EXPERTS OVER THE PAST FEW MONTHS.

FOR NEW JERSEY BUSINESSES, THE BIG TOPIC THIS YEAR WAS INCREASING DIVERSITY AND INCLUSION.

EFFORTS WERE MADE ON THE CORPORATE AND LOCAL LEVEL TO ADDRESS ECONOMIC INEQUALITY.

FOR INSTANCE, NEWARK THIS YEAR SET UP A $100 MILLION INVESTMENT FUND FOR BLACK AND LATINX BUSINESS OWNERS.

FOR A CLOSER LOOK AT NEW JERSEY'S ECONOMIC INEQUALITY, I SAT DOWN WITH JOHN HARMON OF THE AFRICAN-AMERICAN CHAMBER OF COMMERCE IN NEW JERSEY, AND CARLOS MEDINA WHO LEADS THE STATEWIDE HISPANIC CHAMBER OF CARLOS.

I ASKED CARLOS WHY HE BECAME ONE OF THE FIRST INVESTORS IN THE NEWARK FUND.

>> ACCESS TO CAPITAL IS A HUGE PROBLEM FOR BLACK AND BROWN BUSINESSES ACROSS THE COUNTRY, AND PARTICULARLY HERE IN NEW JERSEY.

SO WHEN I WAS APPROACHED BY THE FUND AS SOMEBODY WHO WENT TO UNDERGRAD AND LAW SCHOOL IN NEWARK AND REALLY LOVES THAT COMMUNITY, I THOUGHT IT WAS IMPORTANT TO GET INVOLVED AND ALSO TO INVEST.

AS I'M GOING TO APPROACH OTHER ENTREPRENEURS, THE FACT THAT I HAVE SOME SKIN IN THE GAME, I THOUGHT, WAS COMPELLING, AND IT'S SOMETHING THAT ME AND MY WIFE, WE STARTED A FOUNDATION THIS YEAR AND IT'S IN MY HEART.

I WANT TO GIVE BACK TO THE COMMUNITY, AND THIS WAS, LIKE, SO LINED UP AND ALIGNED WITH OUR VALUES THAT IT WAS REALLY AN EASY DECISION TO BOTH INVEST AND BE A BOARD MEMBER.

>> JOHN, WHY IN THE WORLD DO WE STILL HAVE THIS PROBLEM OF ACCESS TO CAPITAL IN THIS STATE AND ACROSS THE COUNTRY?

I MEAN, WHY HASN'T THE PLAYING FIELD BEEN LEVELLED AT THIS POINT?

>> RHONDA, THAT'S THE QUESTION OF THE DAY.

WHEN YOU LOOK AT BLACK AND BROWN PEOPLE, WE TEND TO CONTRIBUTE TO THE GREATNESS OF NEW JERSEY AND AMERICA, BUT OUR RETURN ON OUR INVESTMENT IS OFTEN MARGINALIZED.

WE'RE NOT A PRIORITY.

PEOPLE SAY THEY ARE A PRIORITY, BUT AT THE END OF THE DAY YOU MEASURE WHAT YOU VALUE.

IT'S DEMONSTRATED BY A FOCUS, DELIBERATE STRATEGY TO HAVE EQUITABLE PARTICIPATION IN NEW JERSEY.

WE LOOK AT AUTO INSURANCE IN NEW JERSEY, THERE'S STILL DISCRIMINATION.

EDUCATION, OCCUPATION.

I THINK THAT'S RIDICULOUS.

WHEN WE LOOK AT TAX ON INFRASTRUCTURE, WHICH WE SUPPORT, BUT WHEN WE LOOK AT THE OPPORTUNITIES, THEY'RE HEAVILY UNIONIZED AND THE UNIONS IN NEW JERSEY ARE NOT INCLUSIVE.

THAT IS A MAJOR PROBLEM.

WHEN WE SEE MAJOR INVESTMENTS IN OUR COMMUNITIES, IT'S SIMPLY A TOP-DOWN STRATEGY VERSUS A BOTTOM-UP.

TO CARLOS' POINT, HAVING SKIN IN THE GAME AND THE FUND OF $100 MILLION IS GREAT.

BUT WE NEED A FUND OF $2 BILLION FOR OUR BUSINESSES TO REALLY MAKE A DIFFERENCE.

>> CARLOS, DO WE HAVE AN OPPORTUNITY, GIVEN HOW COVID-19 AND THIS PANDEMIC HAS REALLY HURT NEW JERSEY'S ECONOMY, CAN WE REBUILD THIS ECONOMY SO THAT WE ARE MORE INCLUSIVE OF BLACK AND BROWN COMMUNITIES?

>> RHONDA, I'LL TAKE YOU BACK TO THE RECEPTION OF '09.

MAIN STREET USA WAS FLAT.

THEY WERE NOT CREATING NEW BUSINESSES.

AND YET HISPANIC-OWNED BUSINESSES WERE DOUBLING AND TRIPLING.

THERE'S A WHITE PAPER THAT SUGGESTS IN '09 THE HISPANIC BUSINESS COMMUNITY HELPED PULL THE COUNTRY OUT OF A RECESSION.

SO BLACK AND BROWN BUSINESSES, WE'RE BATTLE TESTED BECAUSE WE'RE FACING SO MANY OBSTACLES.

SO COVID FOR US IS NOT AS IMPACTFUL FROM A PSYCHOLOGICAL AND A BUSINESS PLAN PERSPECTIVE BECAUSE WE'RE USED TO HAVING TO DO THINGS TWICE AS GOOD.

WHEN I'M BIDDING AT MY COMPANY, I NOT ONLY HAVE TO BE THE LOWEST PRICE, MY RESUMÉ HAS TO BE IMPECCABLE BECAUSE THERE'S A PERCEPTION WHEN I WALK INTO A ROOM AND THEY SAY CARLOS MEDINA.

ALWAYS THE OFF-THE-RECORD QUESTIONS ARE QUESTIONS THAT SUGGEST THAT I'M NOT AS QUALIFIED.

SO IT'S VERY FRUSTRATING TO DO WORK.

BUT TO ANSWER YOUR QUESTION, WE'RE READY AND WE COULD BE THE ENGINES OF THE RECOVERY IF WE'RE ALLOWED TO BE THE ENGINES, IF WE PARTICIPATE IN THE ECONOMY.

IF WE ARE ON BOARDS OF DIRECTORS, ON C-SUITES AND GETTING VENDOR OPPORTUNITIES AT THE SAME PERCENTAGE AS WE'RE HELPING A CORPORATION, WE'LL BE VERY HAPPY.

BUT THAT'S NOT HAPPENING.

>> NEW JERSEY IS FILLED WITH ENTREPRENEURS.

WE TALKED TO SO MANY THIS YEAR WHO FLAT-OUT TOLD US THE JOURNEY CAN BE ROUGH.

WE LEARNED A LOT LISTENING TO THIS STORY.

>> WE'VE SEEN ON THE STATE LEVEL THERE'S BEEN SOME ATTEMPT TO OFFER MORE FUNDRAISING ON THE FEDERAL LEVEL, THE PPP LOAN PROGRAM IS CHANGING TO HOPEFULLY ALLOW MINORITIES BUSINESS OWNERS A BETTER SHOT AT GETTING MONEY.

WHY DOES THIS CONTINUE TO BE AN ISSUE, GETTING FINANCING AND GETTING CAPITAL IS SO DIFFICULT?

>> I THINK THIS IS THE 15 YEARS, AND I STILL HAVE ANXIETY WHEN I GO TO A TRADITIONAL BANK TO FINANCE ME, BECAUSE WHEN I WALK IN THERE I WALKED IN THERE IN A DEFICIT.

THEY WERE NOT BUILT FOR MY SUCCESS.

IF YOU LOOK AT THE DIVERSITY AND THE PEOPLE MAKING THE DECISIONS, THEY'RE NOT REFLECTIVE OF WHAT I LOOK LIKE.

SO WHEN I WALK IN THE BANK AND I SAY, I NEED A LOAN, IT'S PROBABLY THE FIRST TIME THEY'LL SEE ME, A MINORITY WOMAN, THAT RUNS A MULTI-MILLION DOLLAR BUSINESS.

>> DO WE NEED TO CHANGE, PERHAPS, WHO WORKS IN SOME OF THESE FINANCIAL INSTITUTIONS SO THERE IS MORE DIVERSITY IN THE WORKFORCE SO THAT WHEN SOMEBODY LIKE YOU WALKS INTO A BANK THERE'S A WHOLE BUNCH OF YOU IN THE BANK ALREADY?

OR IS IT SOMETHING ABOUT LENDING PRACTICES THAT ARE JUST FLAT-OUT >> I THINK IT'S THE FIRST PART OF IT, DIVERSITY MATTERS.

THERE IS NO WAY, AND, IF ABOUT IT.

DIVERSITY MATTERS.

WE HAVE TO DO SOMETHING IN HOW THESE BANKS DEAL WITH THE POOR AND THE MARGINALIZED.

SO I DO MOST OF MY BUSINESS IN COMMUNITIES, I DO BUSINESSES IN IRVINGTON, NEWARK, PATTERSON.

THESE ARE COMMUNITIES THAT ESSENTIALLY BANKS TURN THEIR BACK ON, RIGHT?

IF YOU HAVE PEOPLE FROM THAT COMMUNITY THAT REFLECT THAT COMMUNITY, BETTER DECISIONS CAN BE MADE.

BUT WHAT YOU HAVE IS BUSINESS AS USUAL.

YOU HAVE OFTENTIMES, THE LOCAL BRANCH MAY BE DIVERSE, BUT WHEN YOU PUT YOUR APPLICATION THROUGH, THE DESK IT LANDS ON MAY BE SOMEONE WHO HAS NEVER HEARD OF THE NAME ADENA BEFORE, RIGHT?

AND THAT'S WHERE THE PROBLEM LIES.

WE HAVE TO DIVERSIFY THE DECISIONMAKING PROCESS IN BANKING, AND THAT'S GENDER AND RACE.

>> ADENA, I SO APPRECIATE YOU SHARING YOUR STORY AND I'M SO HAPPY YOU HAVE SUCCEEDED, DESPITE SOME OF THOSE ODDS THROWN AT YOU.

THANK YOU SO MUCH.

>> YOU'RE WELCOME.

THANKS FOR HAVING ME.

>>> NEW JERSEY'S ECONOMY IS BUILT STOREFRONT BY STOREFRONT, BUT SOMETIMES ENTIRE NEW INDUSTRIES SPROUT UP.

THINK OF WIND ENERGY OR SPORTS BETTING AND NOW RECREATIONAL MARIJUANA.

NEW JERSEY'S RECREATIONAL CANNABIS MARKETPLACE IS EXPECTED TO BE RUNNING IN 2022.

HOW MUCH MONEY IS THERE TO BE MADE FROM WEED?

I TALKED ABOUT HOW MUCH THE STATE STANDS TO EARN FROM THE GREEN PLANT.

>> PROFESSOR, YOU'VE DONE NUMBER CRUNCHES AROUND THE POTENTIAL FOR A LEGALIZED MARIJUANA INDUSTRY IN NEW JERSEY, WHAT IT MEANS IN TERMS OF REVENUE.

WHAT HAS YOUR RESEARCH SHOWN?

>> BASICALLY WHAT WE DID WAS WE TOOK THE DATA AND SPLIT IT INTO THREE MAJOR CATEGORIES.

WE LOOKED AT SALES TAXES, WE LOOKED AT EXIZE TAXES AND THERE'S MONEY THAT WILL BE COLLECTED WITH RESPECT TO APPLICATIONS AND THE LICENSING.

SO WITH RESPECT TO SALES TAXES, IN THE STATE OF NEW JERSEY THE MODEL HAS THREE DIFFERENT PARTS.

THE FIRST PART LOOKS AT A RATE OF 10%, 12%, AND 15%.

AND AT THE HIGHEST MARGIN, WE ESTIMATED THAT THE STATE WOULD COLLECT $107 MILLION.

THIS IS A FULL SATURATION POINT.

SO THE FIRST YEAR IT WOULD PROBABLY TAKE SOME TIME TO GET IT RAMPED UP AND GET THE BUSINESSES IN PLACE, ET CETERA.

BUT AT FULL MARKET SATURATION, ABOUT $107 MILLION.

REGARD TO EXCISE TAX, WE ESTIMATED ABOUT $58 MILLION A YEAR.

AND IN TERMS OF LICENSING AND APPLICATION FEES, THAT'S ABOUT $7.5 MILLION A YEAR.

>> AND ARE THOSE NUMBERS FOR ANNUAL RESULTS OR EVERY YEAR WE WOULD SEE THAT KIND OF REVENUE?

>> RIGHT.

BUT I WOULD EXPECT SOME VARIATION OVER TIME BECAUSE, AS YOU KNOW, NEW YORK, PENNSYLVANIA AND DELAWARE ALSO HAVE PAVED THE WAY FOR DECRIMINALIZATION AND LEGALIZATION OF RECREATIONAL MARIJUANA IN THEIR STATES.

SO ONCE THOSE STATES COME ONLINE, IT'S GOING TO CHANGE THINGS HERE.

AFTER THOSE STATES DO LEGALIZE, I WOULD SUSPECT THAT NEW JERSEY IS GOING TO SEE A GREAT DIFFERENCE IN THESE NUMBERS RIGHT HERE.

SO WHILE THOSE STATES HAVE NOT LEGALIZED, THESE NUMBERS WILL BE HIGHER THAN THEY ARE.

>> SO WHEN YOU LOOK AT THE OVERALL TRAJECTORY FOR LEGALIZED MARIJUANA AND THE MONEY TO BE MADE FROM IT, HOW DO WE FAIR COMPARED TO OTHER STATES, AND IS IT REALLY -- PERHAPS ARE WE LOOKING AT ESTIMATES ELSEWHERE THAT ARE TOO OPTIMISTIC GIVEN THE INCOMING COMPETITION?

>> NO, THIS IS A VERY, VERY LUCRATIVE MARKET AND I'VE SEEN SOME NUMBERS THAT ARE LOWER THAN MY NUMBERS, I'VE SEEN SOME NUMBERS THAT ARE HIGHER.

THERE'S A LOT OF MONEY TO BE MADE IN THIS MARKET.

AND THE FACT OF THE MATTER IS, PEOPLE ARE USING IT.

SO, NO, I THINK THE STATE WILL FARE VERY WELL, AND NEW YORK, EVEN IF THEY DO PASS A LAW, IF NEW YORK, DELAWARE AND PENNSYLVANIA HAS LAWS, NEW JERSEY IS STILL GOING TO COLLECT A LOT OF MONEY FROM THE SALE OF RECREATIONAL MARIJUANA.

>> HOW DOES THE STATE AVOID ANY MISSTEPS IN YOUR VIEW AS IT TRIES TO SET UP REGULATIONS AND A STRUCTURE FOR THIS INDUSTRY TO THRIVE?

OBVIOUSLY THE STATE WANTS TO MAKE SURE IT SEES THE MOST BENEFITS FROM IT.

>> RIGHT.

WELL, 33, 34 STATES HAVE ALREADY PAVED THE WAY FOR US, SO THERE'S LOTS OF EXAMPLES FOR US TO FOLLOW.

I THINK YOU'RE MAKING A VERY VALID POINT.

STATES USE THESE MONIES FOR A VARIETY OF REASONS, BUT EVEN IN CREATING THE PHYSICAL INFRASTRUCTURE TO REGULATE THE INDUSTRY, THERE IS LOTS AND LOTS OF EVIDENCE, COLORADO, CALIFORNIA, THEY HAVE VERY WELL-ESTABLISHED MARIJUANA PROGRAMS.

SO THERE'S NO REASON FOR US TO REALLY HAVE ANY MISSTEPS.

POLITICS, UNFORTUNATELY, KICKS IN ALONG THE WAY.

THAT'S GOING TO BE THE BIGGEST PROBLEM.

BY REGULATING THE INDUSTRY, THERE'S LOTS OF MODELS TO FOLLOW AND LOTS OF GOOD MODELS TO FOLLOW.

>> PROFESSOR, THANK YOU SO MUCH FOR YOUR INSIGHT AND PULLING OUT NUMBERS FOR US.

APPRECIATE IT.

>> THANK YOU FOR HAVING ME.

>>> AND THAT WRAPS UP OUR SHOW FOR THIS WEEK.

"NJ BUSINESS BEAT" IS GOING ON HIATUS FOR THE SUMMER, BUT WE WILL BE BACK IN THE FALL.

THANK YOU SO MUCH FOR WATCHING.

I'M RHONDA SCHAFFLER.

WE'LL SEE YOU IN SEPTEMBER.

>>> FUNDING FOR "NJ BUSINESS BEAT" PROVIDED BY, NEW JERSEY CHAMBER OF COMMERCE.

WORKING TO KEEP NEW JERSEY IN BUSINESS.

ONLINE AT NJCHAMBER.COM.

NJBIA HAS BEEN THE VOICE OF BUSINESS FOR MORE THAN 110 YEARS AND IS BUILT TO SERVE OUR MEMBERS IN TODAY'S NEW NORMAL.

AND NJCU SCHOOL OF BUSINESS, A GAME CHANGING FORCE OFFERING PROGRAMS LIKE FINANCIAL TECHNOLOGY, WHERE BUSINESS ANALYTICS AND DATA SCIENCE.

WE'RE STEPS AWAY FROM THE EXCHANGE PLACE PATH TRAIN IN JERSEY CITY AND MINUTES FROM WALL STREET.

LEARN MORE AT NJCU.EDU/GAMECHANGER.