UPDATE: NJEDA Small Business Emergency Assistance Grant Program (Phase 2 Information Available)
SOURCE: NJEDA, Business.NJ.gov Applications for the NJEDA’s Small Business Emergency Assistance Grant Program launched on April 3rd, 2020. Within an hour the program was oversubscribed; within a week the NJEDA received more than 30,000 applications. UPDATE 5/22/2020: NJEDA will be providing an additional $5 million to fund waitlisted applicants. Information for Phase 2 of the NJEDA Small Business Emergency Assistance Grant NJEDA will award $45 million in federal CARES Act funding to small businesses. To ensure that funding goes to businesses and communities that need it most, $15 million of Phase 2 funding will be set aside to support qualified businesses located in one of the 715 census tracts that were eligible to be selected as a New Jersey Opportunity Zone. Additionally, all NAICS code restrictions from Phase 1 of the grant will be removed for Phase 2. Your organization may use Phase 2 grant funding to… Reimburse revenue lost as a result of a business interruption caused by COVID19. Funding cannot be used for capital expenses, including construction. Phase 2 Grant Award Amounts Businesses will receive $1,000 per full-time employee, (based on WR-30 filing). Sole proprietorships or other companies with no full-time employees will receive the minimum grant amount ($1,000).
Minimum grant amount (per application): $1,000
Maximum grant amount (per application): $10,000 (for entities with more than 10 FTEs)
Your organization is eligible for a Phase 2 Emergency Relief Grant if…
You have 25 or fewer full-time employees, as reported on most recent WR-30 filing with the New Jersey Department of Labor
You have a physical commercial location in the State of New Jersey
Home-based businesses must be based at a home located in New Jersey
You are a non-profit organized as 501(c)(3), 501(c)(4), and 501(c)(7) organizations
Your CEO certifies that your business: 1) Was in operation on February 15, 2020; 2) Will make a best effort not to furlough or lay off any individuals from the time of application through six months after the end of the declared state of emergency; 3) Has been negatively impacted by the COVID-19 declared state of emergency on March 9, 2020; 4) Has a material financial need that cannot be overcome without the grant of emergency relief funds
Your Business: 1) Is registered to do business in the State of New Jersey; 2) Does not have any outstanding tax liabilities; 3) Is in good standing with the New Jersey Department of Labor
To address the massive need for support, the NJEDA has created a process for corporate and philanthropic partners to make donations to expand the Program. For the NJEDA to effectively administer the Program, gifts to support the Small Business Emergency Assistance Grant Program must be at least $100,000 and without conditions. To avoid conflicts of interest, donors must have no existing contracts with the NJEDA and may not enter into such a contract for at least six months. Individuals and companies interested in donating to support the Small Business Emergency Assistance Grant Program should contact firstname.lastname@example.org. You can learn about other NJEDA programs and see what you may qualify for using the NJ COVID-19 Business Support Eligibility Wizard. Explore how how NJEDA determines grant size with the Grant Size Calculator or access a copy of the grant application. More information is available below on the grant scope, eligibility, and the materials required for application submissions. Information from Phase 1 of Grant Funding Businesses can access the full Notice of Funding Availability. The grant program will provide funding as efficiently and quickly as possible to SMEs that are in need. The focus of this round of funding is on the smallest enterprises in industries that are among the most adversely impacted by the COVID-19 containment measures. The goal of the grants is to try to preserve the ability for SMEs to support and maintain a workforce during this containment period that is as close to pre-outbreak levels as possible. The Small Business Emergency Assistance Grant Program will provide up to $5,000 to NJ-based SMEs that have between 1–10 full time equivalent employees (“FTE”). The grant funding is targeted as unrestricted payroll and working capital support, and cannot be used for any capital expenses, including construction. Grant values are calculated at $1,000 per FTEs reported on business’ WR-30 filed with the New Jersey Department of Labor and Workforce Development.
Minimum grant amount (per application): $1,000
Maximum grant amount (per application): $5,000
Total available funding of up to $5 million of which $3 million of the program funds will be set aside for SMEs with 5 or fewer FTEs. Your organization is eligible for the Small Business Emergency Assistance Loan Grant if you…
Have between 1 and 10 FTEs. This means companies non-employee companies (holding), companies that have between 1-10 FTE utilizing 1099 employees, and larger firms are not eligible for this round of grant funding.
Have a physical commercial location in the State of New Jersey. Home-based businesses are not eligible for this round of grant funding. A home-based business is a business operated out of a residential property where commercial activity is not zoned to take place.
Are classified in one of the following industries: Retail (NAICS codes starting with 44… or 45…); Accommodation & food services (NAICS codes starting with 72…); Arts, entertainment & recreation (NAICS codes starting with 71…); Other services (only those with NAICS codes starting with 811… and 812). You can look up your NAICS code at naics.com/search
Are registered to do business in the State of New Jersey.
Must certify that the company is in good tax standing with the State
Are 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.
The CEO of the business must certify that the business:
Will make a best effort not to furlough or lay off any individuals from the time of application through six months after the end of the declared state of emergency. SMEs that have already furloughed or laid off workers must make a best-effort pledge to re-hire those workers as soon as possible. Any material breach of its best efforts certification may result in the NJEDA seeking repayment of the grant.
Has been negatively impacted by the COVID-19 declared state of emergency in Executive Order 103 (e.g., has been temporarily shut down, has been required to reduce hours, has had at least a 20% drop in revenue, has been materially impacted by employees who cannot work due to the outbreak, or has a supply chain that has materially been disrupted and therefore slowed firm-level production).
Has a material financial need that cannot be overcome without the grant of emergency relief funds at this time (e.g., does not have significant cash reserves that can support the SME during this period of economic disruption
Non-profit organizations are eligible for this program. Eligible non-profits must have status of 501(c)(3), 501(c)(4), 501(c)(7).
Types of businesses not eligible:
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
Christmas tree sales or other outdoor storage
Any other activity constituting a nuisance
Illegal under the laws of the State of New Jersey
No fees will be collected by the authority for this program and funding will be fully disbursed as quickly as possible upon approval of grant application. In order to apply for the grant, 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 Basic information about your company.
Registered legal name and “Doing Business As” name. To confirm your organization’s registered legal name, visit Business Name Search.
Federal Employer Identification Number (EIN)
Year your company was established
Full-time employees as of December 31, 2019 and Part-Time Employees as of December 31, 2019
Your organization’s industry as defined by your NAICS code. To confirm your NAICS code, check your federal tax filing or use this site to look up your NAICS code: naics.com/search. Be able to answer the State’s basic debarment question. To see the full application and read the State debarment questions, you may access a copy of the loan application now, Be able to affirmatively answer and/or certify that:
You are not a home-based business. A home-based business is a business operated out of a residential property where commercial activity is not zoned to take place.
You are not a prohibited business.
You have been impacted by the COVID-19 outbreak.
You have a material financial need that cannot be overcome without the grant funds.
You will make a best effort not to lay off any additional employees and 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.
READ MORE: https://faq.business.nj.gov/en/articles/3835237-what-is-the-status-of-the-njeda-small-business-emergency-assistance-grant-program-phase-2-information-now-available