NJEDA Emergency COVID-19 Relief Programs
* NOTE: Fri., 5/15/20 - Gov. Murphy announced additional funding to assist New Jersey small businesses.
The Administration is committing $50 million in CARES Act funding to the EDA to develop programs to support small businesses impacted by the COVID-19 pandemic. The funds will primarily be used to provide grants that will serve as a vital lifeline for the thousands of small businesses struggling during these unprecedented times. The funding will be subject to special EDA board approval, with details on the grants and an application period in the coming weeks.
A package of initiatives from the New Jersey Economic Development Authority includes a grant program for small businesses, a zero-interest loan program for mid-size companies, support for private-sector lenders and Community Development Financial Institutions (CDFIs), funding for entrepreneurs, and a variety of resources providing technical support and marketplace information. Taken together, they will provide more than $75 million of State and private financial support, with the opportunity to grow to more than $100 million if additional philanthropic, State, and federal resources become available. The initiatives will support between 3,000 and 5,000 small and midsize enterprises and are meant to complement recently announced federal economic recovery initiatives.
Applications for the various programs are available now or will become available shortly; see each program page for details. 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, including full eligibility criteria.
Small Business Emergency Assistance Grant Program – 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.
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.
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.
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.
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.
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.
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 for-profit 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 have annual revenues of less than $1,500,000 in the most current fiscal year and cannot have more than 10 full-time employees at time of application.
Small Business Fund: The Small Business Fund offers loans of up to $500,000 for qualifying creditworthy small, minority- or women-owned businesses in New Jersey with up to $3 million in revenue that have been in operation for at least one full year and may not have the ability to get bank financing. Not-for-profit corporations that have been operating for at least three full years may also be eligible for assistance under the Small Business Fund.
Direct Loans: Direct loans are available up to $2 million for fixed assets, and $750,000 for working capital. New Jersey businesses in need of financing and committed to job creation/retention may be eligible for direct loans through the NJEDA when conventional financing is not available. NJEDA’s