NJEDA to Provide $15 Million in New CARES Act Funding to Businesses in Counties that Received No Direct Federal Aid
Board Approves Use of $15 Million in CARES Act Funding for Grants to Small Businesses Impacted by COVID-19 Pandemic
The New Jersey Economic Development Authority (NJEDA) today announced that its Board has approved the use of $15.3 million in Coronavirus, Aid, Relief and Emergency Security (CARES) Act funding to provide grants through the Authority’s Small Business Emergency Assistance Grant Program to businesses located in 12 New Jersey counties that did not receive direct allocations of CARES Act funding from the federal government. The funds will be added to the more than $100 million the NJEDA is currently administering to support COVID-19-impacted businesses.
“Helping small businesses and their employees withstand the immediate economic impact of COVID-19 and prepare for a safe and strong recovery is central to the NJEDA’s pandemic response,” said NJEDA Chief Executive Officer Tim Sullivan. “Using this additional CARES Act funding to expand our Small Business Emergency Assistance Grant Program will allow us to provide much-needed relief for business owners who have been struggling and employees whose jobs have been at risk. Focusing on counties that did not receive direct federal aid will also help to ensure resources are distributed fairly to businesses in all regions of the state.”
To date, more than 11,500 businesses have been approved for grants totaling more than $36.5 million through the Small Business Emergency Assistance Grant Program. Launched in early April with $10 million of NJEDA funds, the Program initially offered grants of up to $5,000 to a narrowly targeted set of small businesses that included restaurants and in-person retail establishments. In early June, the NJEDA used $50 million in CARES Act funds to expand Phase 1 of the grant program by $5 million and launch Phase 2 of the Grant Program with $45 million. Phase 2 expanded the Program to a significantly broader range of businesses and increased the maximum grant award to $10,000.
To ensure equitable distribution of funds, the NJEDA set aside one-third of the CARES Act funding to support qualified businesses located in one of the 715 census tracts that were eligible to be selected as a New Jersey Opportunity Zone. Targeting these census tracts will help to ensure funding goes to communities of color that have been hit particularly hard by the pandemic.
The additional $15.3 million approved for use today will go toward fulfilling eligible Phase 2 grant applications from businesses located in the 12 New Jersey counties that did not receive direct CARES Act funding allocations from the federal government: Atlantic, Burlington, Cape May, Cumberland, Gloucester, Hunterdon, Mercer, Morris, Salem, Somerset, Sussex, and Warren.
The remaining nine counties previously received their own separate allocations of CARES Act funds. Essex, Ocean and Passaic counties contributed $10 million each to the NJEDA to allocate to businesses in those three counties through Phase 2 of the Small Business Emergency Assistance Grant Program. Bergen, Camden, Essex, Hudson, Middlesex, Monmouth, Ocean, Passaic, and Union counties are spending the funds on other COVID-19 relief programs.
In addition to approving the use of the $15.3 million in new CARES Act funding to provide grants through the Small Business Emergency Assistance Grant Program, the NJEDA Board also today delegated authority to the NJEDA Chief Executive Officer to direct any other governmental funding or unrestricted gifts or grants that the Authority may accept for the Grant Program to be administered as grants to eligible businesses in the 12 counties that did not receive direct allocations of CARES Act funding.
Comprehensive information about New Jersey’s coronavirus response is available athttps://cv.business.nj.gov.
To read Governor Murphy’s full economic plan, please visit: https://nj.gov/economicplan
About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
WHAT IS THE MICRO BUSINESS LOAN PROGRAM
- Loans of up to $50,000 to New Jersey micro businesses.
- Business must be registered to do business in New Jersey, have less than
$1.5M in annual revenue, and no more than 10 full time employees to be eligible.
- Startup businesses operating for over 6 months and home-based businesses/all 501(c)(3) nonprofits operating for at least 2 years are eligible to apply.
- Loans can be used to fund business operating expenses, inventory, equipment, and more!
- 2% interest rate: no principal and interest payments for the first three years of the loan.
- 10% of will loan amount will be forgiven if the business is open and operating 12 months after closing date.
- No application/closing fees for first 3 months of the program.
WHAT YOU NEED TO APPLY:
- Your organization’s registered legal name. Please check here to confirm the name is correct: (Your organization’s registered legal name)
- Information on how you will user your loan, rent, uttilities, equipment, etc.
- Information about other State and Federal assistance your business has applied for.
AFTER YOU APPLY, BE PREPARED TO SUPPLY NJEDA WITH THE FOLLOWING INFORMATION:
- All formation documents (i.e. Certificate of Incorporation, Operating Agreement, Certificate of Authority, etc.) This depends on what type of business you are!
- Most recent WR-30 filings
- Three consecutive years of business tax returns AND personal tax returns (for all 10%+ owners),
- A business plan with 5 year projections (for startup businesses)
- Information supporting how you plan to use the loan (i.e. Current lease, recent utility bills, recent statements, etc.)
Payroll: Payroll reports/ledger
Rent: Current lease
Mortgage: Most recent statement/bill
Utilities: Most recent bill
Taxes: Most recent municipal statement/bill
Inventory/Equipment: Invoices, estimates for equipment installation
Cape May County Division of Economic Development (609) 465-1085
Offering assistance to Cumberland and Atlantic Counties
CoWork Street co working space and incubator (856) 246-1297
Offering assistance to Camden, Burlington and Salem Counties
Gloucester County Department of Economic Development (856) 384-1177
Offering assistance to Camden and surrounding areas
Spanish speaking assistance also available
SBDC at Rutgers Camden (856) 225-6221
Offering assistance to Camden and surrounding areas
NJEDA staff will process the applications on a first-come first-served basis. There will be no application fee for the first 3 months of the program.