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2/3/21 UPDATE: Current Status of the Small Business Emergency Assistance Loan Program (Phase 2)

Entities can pre-register for the Phase 2 Loan Program beginning 9:00 a.m. on Wednesday, February 10, 2021, by visiting the NJEDA’s application portal. In response to the ongoing economic challenges being faced by New Jersey small businesses due to the COVID-19 public health emergency, the New Jersey Economic Development Authority (NJEDA) has created the Small Business Emergency Assistance Loan Program (Phase 2). The $10 million program will make direct low-cost financing available to help New Jersey small businesses and nonprofit organizations with recovery and reopening efforts as a result of COVID-19.


The Small Business Emergency Assistance Loan Program (Phase 2) is designed to provide a direct loan of up to $100,000 to NJ-based small businesses and non-profit organizations that have been in existence and in operation for at least one-year, have $5 million or less in annual revenue, and have been negatively impacted by the COVID-19 public health crisis.

  • ‍Frequently Asked Questions – Phase 2 (English)

  • ‍Frequently Asked Questions – Phase 2 (Spanish)


An entity must meet the following requirements:

  • Have a physical commercial location in the State of NJ. Home-based businesses and real estate holding companies are not eligible for this program. A home-based business is a business operated out of a residential property not zoned for commercial activity.

  • Have been in existence and in operation since February 24, 2020.

  • Have $5 million or less in annual revenue

  • Have been negatively impacted by COVID-19 (since March 9, 2020)

  • Be registered to do business in the State of NJ

  • Must certify that the company has no tax debts due to the State

  • Be in good standing with the Department of Labor and Workforce Development, with all decisions of good standing at the discretion of the Commissioner of the Department of Labor and Workforce Development

  • All nonprofits organized under 501(c) of the Internal Revenue Code are also eligible for the program

Types of businesses NOT eligible:

  • Home-based businesses

  • Real estate holding companies

  • Related to gambling or gaming activities

  • Related to the purveyance of “adult” (i.e., pornographic, lewd, prurient, obscene) activities, services, products or materials (including nude or semi-nude performances or the sale of sexual aids or devices)

  • Auction or bankruptcy or fire or “lost-our-lease” or “going-out-of-business” or similar sale

  • Traveling merchant

  • Christmas tree sales or other outdoor storage

  • Any other activity constituting a nuisance

  • Illegal under the laws of the State of NJ

Available Funding and Eligible Funding Uses

Under the Phase 2 Loan Program, businesses may apply for loans of up to $100,000. If a business was approved for a loan under Phase 1 of the Small Business Emergency Assistance Loan Program, it will be eligible under Phase 2 only for an amount that will not exceed $100,000 in the aggregate of the two phases. For example, if a business received a $50,000 loan in Phase 1, it can receive no more than $50,000 in Phase 2.

The total available funding under the program is $10 million, $3.5 million of which will be reserved for entities located in of New Jersey’s 715 eligible Opportunity Zone census tracts. Check if your entity is located in an eligible tract.

Financing can only be used for operating expenses incurred on or after the declared state of emergency (March 9, 2020). This includes the following eligible expenses:

  • Inventory

  • Rent/Mortgage

  • Payroll

  • Utilities

  • Personal protective equipment

  • Furniture, fixtures or equipment needed as a result of COVID-19, provided it does not require professional installation costs in excess of $1,999.

The following are NOT eligible uses of Phase 2 Loan funding:

  • Operating expenses incurred prior to the declaration of emergency (March 9, 2020)

  • Refinancing of existing debt

  • Personal, non-business, obligations or costs incurred by related entities

  • Construction-related expenses or contracts

  • Furniture, fixtures or equipment requiring professional installation costs in excess of $1,999.

Interest Rate & Terms

This program is structured specifically for entities facing economic challenges due to COVID-19 and provides low-cost and flexible terms, such as:

  • 10-year term and amortization

  • 0% interest rate (years 1-5), NJEDA’s prevailing interest rate floor (capped at 3.0% years 6-10)

  • Deferred repayments for 12 months, with an option for an additional 6 months, if needed.

There are no fees associated with the Small Business Emergency Loan Program for the first five years of the loan, including application fees, and then standard modification fees will apply, if applicable.

Process to Pre-Register and Apply

Step 1: Pre-Register Businesses who would like to apply for the loan must first pre-register on the NJEDA’s application portal. The pre-registration period will be open from 9:00 a.m. on Wednesday, February 10, 2021, until 5:00 p.m. on Monday, February 22, 2021. Pre-registration is not first come, first served. Businesses can pre-register at any time during this open pre-registration period, but only businesses that pre-register will be eligible to apply.

Please see the sample pre-registration below to see what the pre-registration form will look like, including how to log into the portal:

  • ‍Sample Pre-Registration (English)

  • ‍Sample Pre-Registration (Spanish)

Step 2: Complete Application Form Only businesses that pre-register will then be able to apply for the Phase 2 Loan Program. The application form will open to all pre-registered businesses beginning 9:00 a.m. on Wednesday, February 24, 2021, on the NJEDA application portal.

Once the NJEDA receives the application form and determines your entity may be eligible, you will be contacted by the NJEDA to provide additional financial information and documents about your company to complete the loan application review. You will have 5 days to provide this information from the date/time the NJEDA sends the request.

Generally speaking, funding will be available on a first-come, first-served basis, based on the date/time on which the NJEDA receives the application form. However, $3.5 million of the total program pool will be reserved for businesses located in Opportunity Zone eligible census tracts, and priority will also be given to applicants that have received no greater than $10,000 of government assistance related to the COVID-19 pandemic, defined as any federal loan, grant or loan guarantee that may have been provided by or issued through any federal and/or governmental entity after March 9, 2020, including but not limited to the U. S. Small Business Administration’s COVID-19 relief programs. This would also include state or local assistance that entities may have received, after March 9, 2020, related to COVID-19, of which the funding source is federal (i.e. programs administered by the state or county that are funded through the CARES Act).

Step 3: Upload Financial Information Once the NJEDA receives the completed application form, a preliminary review will take place to determine if the entity is eligible. Please allow for some time for this review to take place as it will be based upon the application volume the NJEDA receives. Applicants should check their email daily, including junk and spam, for emails from All applicants should receive a communication from NJEDA regardless of whether your entity is eligible or not.

Assuming your entity is determined to be eligible, you will receive an email from with instructions to provide additional financial information about your entity. Once you receive this notification from the NJEDA, you will need to log back into the application portal to upload the financial information. You will have 5 days to complete this from the date/time the NJEDA sends the request.

To help entities be prepared for this step, we have prepared the below financial information checklist so that you may begin to gather these documents as soon as possible. Please note that the list of information may vary depending on whether you are a for-profit business or a non-profit organization.

Please see below for a list of financial information that you will be asked to provide.

  • ‍Financial Information Checklist (English)

  • ‍Financial Information Checklist (Spanish)

Pre-Registration and Application Preparation

In order to pre-register and apply for the loan, businesses will need to provide the following…


  • Contact information for someone who is authorized to speak on behalf of your company, for example: an owner or an executive such as a CEO or Executive Director

  • Full name of your registered legal entity

  • Ownership structure (sole proprietorship, LLC, Non-Profit Organization, etc.)

  • 9-digit Employer Identification Number (EIN; Federal Tax ID Number)

  • Date your business/entity was legally formed AND date your business/entity began operating (these dates may be different)

  • Annual revenue based on most recent business tax filing

  • Have you received other Federal, State, or county/municipal funding for COVID-19? If so, know the total amount you have received.

  • Loan amount you’re requesting from the NJEDA under the Phase 2 program. (cannot exceed $100,000)

Application Form: Names, personal addresses, date of birth, and social security numbers of any individual or entity with ownership of the business Information on how you intend to use the loan:

  • If you are using the loan for furniture/fixtures/equipment or personal protective equipment, you will need to know whether those items require professional installation and the estimated cost to professionally install them, if applicable.

Information on other Federal, State, or county/municipal assistance the entity has applied for and/or received. This may include but is not limited to, i.e. PPP, SBA EIDL, NJRA grants, NJEDA grant/loan. For each one that you identify, you will need to know:

  • Were you approved, declined or still under review?

  • What was the amount you applied for and/or received?

  • If approved, what is the funding being used for?

Be able to answer the State’s basic debarment question. This includes being able to affirmatively answer and/or certify that:

  • You are not a home-based business

  • You are not a prohibited business

  • You have been impacted by the COVID-19 pandemic

  • You will make a best effort not to lay off any additional employees and to re-hire any whom you have already laid off

  • Information you are providing is correct

  • You will allow the NJEDA to check your entries against other State sources of data

  • You will authorize NJEDA to obtain a credit report on all guarantors

  • You are current on all state obligations.

Additional Financial Information: Once the NJEDA receives the application form and determines your entity may be eligible, you will be contacted by the NJEDA to provide additional financial information and documents about your company to complete the loan application review. You will have 5 days to provide this information from the date/time the NJEDA sends the request. If a loan is offered, you’ll be asked to provide following as part of the closing process:

  1. Evidence of proper business insurance coverage

  2. Copies of a government issued photo identification document for all individuals who may become party to the loan

  3. ACH details to enable transmission of proceed



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