NJEDA Emergency Small Business Grant Applications Now Open

The application for the New Jersey Economic Development Authority (NJEDA) Small Business Emergency Assistance Grant Program is now open. A link to the grant program application is posted on the State’s COVID-19 Business Information Hub. The grant program is part of a package of initiatives announced last week to support businesses and workers facing economic hardship due to the outbreak of the novel coronavirus COVID-19.  

Eligibility Guidelines for Small Business Emergency Assistance Grant Program

Businesses applying for the Small Business Emergency Assistance Grant Program must provide:

• A contact who is authorized to speak on behalf of the company.
• Basic information about the company:
• Registered legal name and “Doing Business As” name (available here: https://www.njportal.com/DOR/BusinessNameSearch/Search/BusinessName;
• Federal Employer Identification Number (EIN);
• Year your company was established;
• Full-time employees as of December 31, 2019 and Part-Time Employees as of December 31, 2019.
• Industry as defined by your NAICS code (available here: https://www.naics.com/search/).
• Answers to the State’s basic debarment questions (See .pdf of application here: https://cv.business.nj.gov).
• Certification that the business:
• Is not a home-based business;

Is not a prohibited business;

• Has been impacted by the COVID-19 outbreak;
• Has a material financial need that cannot be overcome without the grant funds;
• Will make a best effort not to lay off any additional employees and re-hire any whom have already been laid off;
• The NJEDA may check your entries against other State sources of data.

NJEDA has developed an online Grant Award Size Estimate Calculator to help eligible businesses understand what their potential grant size might be.

Payroll Protection Program Applications Open

On Friday, April 3, New Jersey lenders will start to accept applications for SBA Paycheck Protection Loans. The CARES Act establishes a new $349 billion Paycheck Protection Program. The Program will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed. The Paycheck Protection Program is specifically designed to help small businesses keep their workforce employed. The new loan program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.

Loan Terms & Conditions

• Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries
• Maximum loan amounts up to $10 million
• Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)

All loans under this program will have the following identical features:

• Interest rate of 1%
• Maturity of 2 years
• First payment deferred for six months
• 100% guarantee by SBA
• No collateral
• No personal guarantees
• No borrower or lender fees payable to SBA 

NJEDA Announces Application Launch Date for Loan Program for Small Businesses Impacted by COVID-19

The New Jersey Economic Development Authority (NJEDA) will launch the application for its Small Business Emergency Assistance Loan Program on Monday, April 13, 2020 at 9:00 am. The loan program is part of a package of initiatives announced last week to support businesses and workers facing economic hardship due to the outbreak of the novel coronavirus COVID-19.

A link to the program application will be posted on the State’s COVID-19 Business Information Hub. To provide business owners the opportunity to prepare to apply for the loan, a .pdf version of the application will become on Monday, April 6th.

To read the NJEDA press release, click here.