NJEDA Approves $20 Million for Main Street Micro Business Loan Program
On November 10, the New Jersey Economic Development Authority (NJEDA) approved the creation of the Main Street Micro Business Loan, which will provide financing of up to $50,000 to eligible micro businesses in New Jersey with ten or fewer full-time employees and no greater than $1.5 million in annual revenues. The Program is the successor to the Micro Business Loan Program established by the NJEDA in 2019.
The Main Street Micro Business Loan is the newest product from the Main Street Recovery Fund—a $100 million suite of programs created or expanded under the Economic Recovery Act of 2020 (ERA), signed by Governor Phil Murphy in January 2021.
To help ensure all Opportunity Zone eligible tracts in New Jersey receive opportunities for investment that are equitable and inclusive, $8 million will be set aside to support eligible businesses and nonprofits with a primary business location within the 715 census tracts designated as eligible to be selected as an Opportunity Zone.
Nonprofit, for profit, and home-based micro businesses interested in applying for the Main Street Micro Business Loan must meet the following eligibility requirements:
- Must have less than $1.5 million in annual gross revenue for the most current fiscal year (to the extent the business has annual revenues)
- Must have no more than 10 full-time employees
- Must be legally registered to do business in New Jersey, with a business location (other than a home office) in New Jersey
- Must be in existence, as evidenced by date of formation/incorporation, and in operation for at least six months prior to the date of application being made publicly available
- Must be in good standing with the New Jersey Department of Labor and Workforce Development (LWD) and NJ Department of Environmental Protection at the time of application to be eligible for a micro business loan
- Must provide a current tax clearance prior to approval to demonstrate the applicant is in good standing with the NJ Division of Taxation.
Applications for the Main Street Micro Business Loan will be reviewed on a first-come, first-served basis, based on the date/time at which the Authority receives the completed application. Any pending applications to the prior Micro Business Loan Program can still proceed toward closing on their loan. Past recipients of the Micro Business Loan Program are eligible to apply for the Main Street Micro Business Loan. Due to the favorable terms of this product only one application per EIN is allowed.
For more information about the Main Street Micro Business Loan, go to https://www.njeda.com/microbusinessloan/.