In response to the COVID-19 pandemic, the New Jersey Economic Development Authority (NJEDA) is offering both a grant and a loan program for small businesses. Here is a summary of these programs as of April 3, 2020.
Small Business Emergency Assistance Grant Program
This program provides a maximum individual grant of up to $5,000 to businesses in specific industries under North American Industry Classification System codes starting with 44, 45, 71, 72, 811, and 812, as well non-profit organizations under Sections 501(c)(3), (4), and (7) of the Internal Revenue Code.
Grants are limited to businesses employing between one and ten full-time employees, and certain other limitations apply (e.g., the business must be registered with the state, have a physical location in the state, etc.).
Applicants must certify to the negative impact of the current COVID-19 emergency, but not to any percentage of losses. The size of an applicant’s potential grant can be estimated online.
A short online application will be available on the NJ COVID-19 websites.
Small Business Emergency Assistance Loan Program
Businesses are entitled to receive a maximum loan of up to $100,000. This loan is limited to New Jersey-registered businesses that have a New Jersey commercial location, have been in existence for more than one year, and have $5 million or less in annual revenue.
Furthermore, to be eligible, businesses must additionally have a minimum global debt service of 1.0 (i.e., 2019 net operating income was greater than 2019 debt service payments), a minimum credit score of 600, and be in good standing with the New Jersey Department of Labor and Workforce Development.
The business must also demonstrate a negative impact from the COVID-19 pandemic on their business (business closure, significantly reduced hours, or a 20% revenue drop). The loans provided will be for up to ten years with zero-interest for years one through five, and one to three percent interest for years six through ten, and will further allow for deferred repayment for the first twelve months.
An application will be available here.
The Application Window
The application window opens at 9 AM on April 3rd and closes on April 10 at 9 AM. Applications will be processed on a first-come, first-served basis. Funds will likely be exhausted early for both programs.
Please contact your MSPC advisor to assist you in taking advantage of these opportunities or with any questions about any of the COVID-19 relief programs.