UPDATE 7/28/2020: State Financial Assistance Programs Available for Your Business

SOURCE: Business.NJ.com


NJEDA/NJRA Emergency COVID-19 Relief Programs

See each program page for details on programs administered by the New Jersey Economic Development Authority (NJEDA) and the New Jersey Redevelopment Authority (NJRA). To see which of these programs you are eligible for, use the NJ COVID-19 Business Support Eligibility Wizard.


Please click on each program below for more information.


NJRA Small Business Lease - Emergency Assistance Grant Program -- A $6 million NJRA program that allows businesses in 64 eligible municipalities that have been adversely impacted by COVID-19 to apply for grants of up to $10,000 to assist with lease payments. The program is targeted to businesses with 5,000 square feet of leased space or less, and provides grants to tenants leasing commercial space in mixed-use buildings, tenants leasing space in commercial buildings, and tenants leasing space to operate a storefront business. Applications open August 10, 2020, online, and funds will be distributed on a first come first served basis.


NJEDA Small Business Emergency Assistance Grant Program, Phase 1 – A $5 million program that will provide grants up to $5,000 to small businesses in retail, arts, entertainment, recreation, accommodation, food service, and other services – such as repair, maintenance, personal, and laundry services – to stabilize their operations and reduce the need for layoffs or furloughs. NJEDA also awarded an additional $5 million to fund businesses that were waitlisted during Phase 1.


NJEDA Small Business Emergency Assistance Grant Program, Phase 2 – $45 million in federal CARES Act funding provided grants up to $10,000 to a significantly broader range of businesses than were previously eligible. The application period is now closed.


NJEDA Small Business Emergency Assistance Loan Program – A $10 million program that will provide working capital loans of up to $100,000 to businesses with less than $5 million in revenues. Loans made through the program will have ten-year terms with zero percent for the first five years, then resetting to the EDA’s prevailing floor rate (capped at 3.00%) for the remaining five years.


NJEDA NJ Entrepreneur Support Program – A $5 million program that will encourage continued capital flows to new companies, often in the innovation economy, and temporarily support a shaky market by providing 80 percent loan guarantees for working capital loans to entrepreneurs.


NJEDA Small Business Emergency Assistance Guarantee Program – A $10 million program that will provide 50 percent guarantees on working capital loans and waive fees on loans made through institutions participating in the NJEDA’s existing Premier Lender or Premier CDFI programs.


NJEDA Emergency Technical Assistance Program – A $150,000 program that will support technical assistance to New Jersey-based companies applying for State and US Small Business Administration programs. The organizations contracted will be paid based on SBA application submissions supported by the technical assistance they provide.


NJEDA Community Development Finance Institution (CDFI) Emergency Loan Loss Reserve Fund – A $10 million capital reserve fund to take a first loss position on CDFI loans that provide low interest working capital to micro businesses. This will allow CDFIs to withstand loan defaults due to the outbreak, which will allow them to provide more loans at lower interest rates to microbusinesses affected by the outbreak. Only NJ-based CDFIs are eligible for these programs.


NJEDA CDFI Emergency Assistance Grant Program – A $1.25 million program that will provide grants of up to $250,000 to CDFIs to scale operations or reduce interest rates for the duration of the outbreak. Only NJ-based CDFIs are eligible for these programs.


Traditional NJEDA Programs


The NJEDA encourages businesses to explore the following programs. More details about each of these programs can be found on the NJEDA’s website at njeda.com/small_midsize_business.


Micro Business Loan Program:


Through this program, the NJEDA makes financing of up to $50,000 available to New Jersey businesses, which can use the financing for working capital or to purchase equipment. To ensure that the financing is accessible to the early-stage and micro businesses that need it most, to qualify, a business must fewer than ten employees and no greater than $1.5 million in revenues. On June, 9, NJEDA announced an expansion of its Micro Business Loan Program to assist New Jersey small businesses, many of which are facing business interruption as a result of COVID-19.


The expanded program will provide financing up to $50,000 to businesses for inventory, equipment, and working capital. Loans will have a standard ten-year term. Interest rates will be set at 2 percent with no interest and no payment due for the first three years. Businesses that receive financing under the enhanced program and are still in operation 12 months after the closing date of the loan will have ten percent of the approved loan amount forgiven. The expanded Micro Business Loan Program is open to for-profit businesses with a business location in New Jersey, as well as home-based businesses and not-for-profit organizations that have been in operation for at least two years. Startup businesses, defined under the program as business in operation between six months and one year, may also be eligible for the program, but will be required to provide a business plan and five-year projections at application. The NJEDA will capitalize the program with $10 million. Of the $10 million in total funding available, $3.5 million will be set aside to support