$10 Million Expansion of NJEDA Small Business Emergency Assistance Loan Program
On September 1, the New Jersey Economic Development Authority (NJEDA) announced a $10 million expansion of its Small Business Emergency Assistance Loan Program to help support small businesses and nonprofits impacted by the COVID-19 pandemic. The expanded program will be capitalized by a grant received from the United States Economic Development Administration’s (USEDA’s) Coronavirus Aid, Relief, and Economic Security (CARES) Act appropriation.
The second phase of the Small Business Emergency Assistant Loan Program will launch as a $10 million program and will offer up to $100,000 in low-cost financing to eligible New Jersey small businesses and nonprofits to help with recovery and reopening efforts as a result of COVID-19. The funding can be used to pay rent or mortgage, payroll, and/or utilities. It can also be used to purchase inventory, personal protective equipment (PPE), furniture, fixtures, or equipment. To ensure equity, $3.5 million of the funding will be reserved for businesses in Opportunity Zone-eligible census tracts.
The NJEDA expects the application for its Small Business Emergency Assistance Loan Program – Phase 2 to be available in the fall.
To be eligible for financing through Phase 2 of the Small Business Emergency Assistance Loan Program, small businesses and non-profit organizations must be in existence and in operation for at least one year prior to the date of application launch, have $5 million or less in annual revenue and a physical commercial location in New Jersey. They also must be able to show a negative impact resulting from the COVID-19 outbreak. Home-based businesses are not eligible for financing under this program.
To read the EDA Press Release, click here.
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