Trenton, N.J. (February 8, 2022) – The New Jersey Economic Development Authority (NJEDA) today announced plans to open applications for its Small Business Improvement Grant on Thursday, February 10 at 10:00 a.m. The Small Business Improvement Grant is the second of several products the NJEDA is launching under the Main Street Recovery Program, to help small businesses become more resilient and position themselves for growth.

Funded with $15 million, this product will reimburse eligible small businesses and nonprofits for up to 50 percent of eligible project costs associated with building improvements or the purchase and/or installation of new furniture, fixtures, and equipment (FFE) made on or after March 9, 2020, but no more than two years prior to application. The maximum grant award will be $50,000 per business entity for the life of this program.

“Small businesses are the backbone of New Jersey,” said Governor Phil Murphy. “This program will allow small businesses and non-profits throughout our state to make the investments necessary for their success and for improvements to their spaces. Since the beginning of our administration, the NJEDA has been focused on making New Jersey stronger and fairer for all New Jerseyans, and the Small Business Improvement Grant is just one of many examples of what we are doing to ensure that small businesses share in the benefits of the Economic Recovery Act of 2020 (ERA).”

Created under the ERA, the Main Street Recovery Program is a $100 million small business support program that will fund multiple financial assistance products aimed at supporting the growth and success of small businesses in New Jersey. More information is available at https://www.njeda.gov/main-street-recovery-fund/.

“The Main Street Recovery Program embodies Governor Phil Murphy’s commitment to providing small businesses and nonprofits with the resources they need to build greater resilience against economic challenges and succeed in the long run,” said NJEDA Chief Executive Officer Tim Sullivan. “Products created by the ERA include provisions to ensure equity and inclusiveness, and the Small Business Improvement Grant, combined with the other components of the Main Street Recovery Program, provides a comprehensive approach to fostering more vibrant downtowns.”

In line with Governor Murphy’s commitment to equity, 40 percent of the Small Business Improvement Grant funding will be set aside for businesses and nonprofits in Opportunity Zone-eligible census tracts.

“The pandemic hit small businesses hard and the Small Business Improvement Grant will help to offset the costs they had to incur to adapt to new and challenging circumstances,” said Christina Fuentes, NJEDA’s Managing Director of Community Development. “We encourage small business owners that have invested in their facilities and operations to adapt to new ways of doing business during these stressful times to apply for this grant to help them recover their costs and build their reserves for whatever the future may hold.”

To be eligible, work must be completed on or after March 9, 2020, but no more than two years prior to application date. Applicants must provide documentation proving payment was made for completed work (e.g. invoices, statements, payments, and/or cancelled checks.)

Applicants must also commit to remaining in the facility and meeting wage requirements for up to four years following the execution of the grant agreement and depending upon award amount. Awards greater than $25,000 will have a compliance period of four years and grant awards less than $25,000 will have a compliance period of two years.

The first offering created under the Main Street Recovery Program is the Small Business Lease Grant. That grant provides an award of 20 percent of annual lease payment for each of the first two years of a lease to small businesses and nonprofits that have entered into a new lease no earlier than 12 months prior to their date of application and the new lease is for at least 250 square feet of street-level space and has a term of at least a five years. Businesses that have amended or extended their lease and have added at least 250 square feet of space are eligible as well. Applications for the grant were launched on October 20, 2021. Details about that grant, including complete eligibility criteria, and additional information are available at https://www.njeda.gov/small-business-lease-grant-program/

Businesses and nonprofits that receive funding through the Small Business Lease Grant or Small Business Improvement Grant are required to agree to pay employees going forward for the grant term the greater of $15 per hour or 120 percent of the minimum wage. Tipped employees must be paid at least 120 percent of the minimum wage. For more information on wage compliance for the Main Street products please visit https://www.njeda.gov/main-street-recovery-fund/.

Signed in January 2021, the ERA creates a package of programs that includes tax credits to incentivize job creation, new construction, and revitalization of brownfields and historic properties; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram and LinkedIn.

Enhanced Oversight and Improved Processes Ensure Tax Credits Deliver Benefits to Taxpayers

TRENTON, N.J. (January 5, 2022) – The New Jersey Economic Development Authority (NJEDA) announced today that it has cut awards approved under the Grow New Jersey (Grow NJ) Program by $350 million under Governor Phil Murphy’s leadership. Through increased oversight and more stringent review processes, the NJEDA has reduced the amounts of Grow NJ awards for 82 companies to date after they did not create or retain the number of jobs they committed to at the time of project approval.

A report issued in January 2019 by the Office of the State Comptroller (OSC) identified significant issues at the NJEDA related to incentive project approvals and oversight. Since then, the NJEDA has taken several significant steps to address specific concerns articulated by the OSC and the Governor’s Task Force on NJEDA Tax Incentives. These steps include more formal data-sharing practices with the New Jersey Department of Labor and Workforce Development and the Department of the Treasury/Division of Taxation to ensure that tax credits are only disbursed to companies to the extent they meet their commitments for job creation and retention.

A follow-up report released by the OSC today acknowledged NJEDA’s considerable progress toward improving its processes and internal controls for administering the State’s various tax incentive programs. As a result of the recommendations made by the OSC and the Task Force, the NJEDA now conducts a rigorous, annual review of more than 400,000 jobs associated with various programs.

The NJEDA has also made a number of critical organizational changes, including appointing a Chief Compliance Officer, creating the Division of Compliance and Program Management, reorganizing its front-end program teams to ensure a more transparent staff recommendation and decision-making process, and procuring an additional independent, external compliance auditor, among other changes. To reinforce a culture of compliance, transparency, and continuous improvement, the NJEDA has provided staff with tools and training to encourage them to ask provocative questions, dig deeper, and employ commercially reasonable skepticism.

“Since the OSC’s initial report, the NJEDA has worked hard to resolve the issues raised in the report and has reinforced its commitment to being a best-in-class steward of taxpayers resources to ensure the programs we administer benefit New Jerseyans and our communities” said NJEDA Chief Executive Officer Tim Sullivan. “While we continue to make improvements and adapt to the changing economic environment, we are proud of what we have accomplished during Governor Murphy’s administration. We also appreciate the OSC’s recognition that the NJEDA has addressed the most significant issues raised in its prior report.”

Sullivan noted that the NJEDA’s commitment to transparency and responsible stewardship of taxpayer resources is clearly reflected in all programs recently launched and under development by the NJEDA, including those created by the Economic Recovery Act of 2020.

The list of companies for which Grow NJ awards have been reduced to date is available here.

About NJEDA
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram and LinkedIn.
 

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Please be advised that a Capital City Redevelopment Corporation Board Meeting is scheduled for 11:00 am, Tuesday, December 21, 2021.  The Members will convene via conference call only.

Members of the public whom wish to speak during the public comment segment of the meeting, pertaining to agenda items, may call into the meeting by using the following conference number:
 
Teleconference #:
1-551-220-2262

Access Code: 140 619 047#

The agenda can be found 48 hours prior to the meeting at our website: www.njeda.gov/ccrc.

Please be advised that the Board Meeting of the New Jersey Economic Development Authority scheduled for Wednesday, January 12, 2022 is hereby cancelled. The next regularly scheduled meeting is Wednesday, February 9, 2022 at 10am.

The Members will convene to discuss and vote on matters via conference call only.

Members of the public may participate in the meeting by calling in on the conference line.  Members of the public will have an opportunity to speak during the public comment segment of the meeting. The following conference number is being provided:

CONFERENCE NAME: NJEDA BOARD MEETING (February 9, 2022)

PARTICIPANT DIAL-IN NUMBER: 877-692-8955

PARTICIPANT ACCESS CODE: 4204420

Members of the public are encouraged to call in prior to the time the meeting is scheduled to begin to avoid any delays.

The agenda can be found 48 hours prior to the meeting on our website: www.njeda.gov.

Please be advised that a telephonic meeting of the New Jersey Economic Development Authority is scheduled for 10:00 AM, Wednesday, November 10, 2021.

The Members will convene to via conference call only.  Members of the public may participate in the meeting by calling in on the conference line.  Members of the public will have an opportunity to speak during the public comment segment of the meeting.

The following conference number is being provided:

CONFERENCE NAME: NJEDA BOARD MEETING (November 10, 2021)

PARTICIPANT DIAL-IN NUMBER: 877-692-8955

PARTICIPANT ACCESS CODE: 4204420

Members of the public are encouraged to call in prior to the time the meeting is scheduled to begin to avoid any delays. 

The agenda can be found 48 hours prior to the meeting on our website: https://www.njeda.gov. The meeting will also be recorded and posted to the NJEDA website shortly after the conclusion of the meeting.