TRENTON, N.J. (April 22, 2020) – The New Jersey Economic Development Authority (NJEDA) today launched its New Jersey Entrepreneur Support Program to help Garden State entrepreneurs with limited funding navigate COVID-19-related cashflow constraints by giving them access to capital from investors that are already investing in their companies. A link to the program application is posted on the State’s COVID-19 Business Information Hub. This guarantee program is part of a package of initiatives, including grants and loans, announced late last month to support businesses and workers facing economic hardship due to the outbreak of the novel coronavirus COVID-19.
 
The New Jersey Entrepreneur Support Program is a $5 million program that will create a guarantee to support repayment of an investor loan advanced for working capital purposes and is designed to encourage investors to support businesses within their portfolios.
 
“The financial support of angel investors, venture capital firms, and other similar investment entities is the lifeblood that drives the innovation economy and entrepreneurship in the Garden State,” said NJEDA Chief Executive Officer Tim Sullivan. “In these challenging times, we remain committed to ensuring that investment dollars continue flowing to emerging technology and life sciences companies in the Garden State as we work toward fulfilling Governor Murphy’s vision of creating the most diverse and inclusive innovation ecosystem in the nation.”
 
The program will provide an 80 percent NJEDA guarantee for an eligible new loan or convertible note by a qualified investor into a New Jersey qualified business, not to exceed a $200,000 guarantee per company. Investors are qualified for the program if they have already provided funding to a New Jersey company through a simple agreement for equity (SAFE), convertible note, or equity investment as of March 9, 2020 (the date of the Governor's Executive Order 103). Participating investors are not required to be New Jersey residents and can include, but are not limited to, individuals, trusts, and corporations. There will be no fees associated with the NJ Entrepreneur Support Program for the first five years of a loan and then standard modification fees will apply.
 
To be eligible to benefit from the program, a company must be headquartered in New Jersey, have fewer than 25 total employees with a minimum of 50 percent of its employees in the Garden State, and under $5 million in revenues as of December 31, 2019.
 
Additional eligibility requirements for both investors and entrepreneurs can be found at http://cv.business.nj.gov.
 
 
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.
 
The NJEDA has established a new toll-free number specifically for inquiries related to NJEDA’s Small Business Emergency Assistance programs. Please call (844) 965-1125 to speak with a representative.
 
To learn more about NJEDA resources for businesses call or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, and LinkedIn.
 

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TRENTON, N.J. (April 17, 2020) – The New Jersey Economic Development Authority (NJEDA) today announced partnerships with six Community Development Financial Institutions (CDFIs). These partnerships will leverage New Jersey-based CDFIs to provide between $20 million and $30 million in low-cost financing to small and microbusinesses and nonprofits impacted by the COVID-19 outbreak.
 
“Microbusinesses, nonprofits, and other small businesses that rely on CDFIs for the capital they need to grow are a vital component of New Jersey’s economy. They have been hit particularly hard by the COVID-19 outbreak,” said NJEDA Chief Executive Officer Tim Sullivan. “These partnerships will allow CDFIs to expand their operations to help more businesses withstand today’s challenges and return to full strength as soon as possible.”
 
New Jersey Community Capital (NJCC), UCEDC, Regional Business Assistance Corporate (RBAC), Cooperative Business Assistance Corporation (CBAC), Greater Newark Enterprise Corporation (GNAC), and 1st Bergen Federal Credit Union will be participating in the Authority’s new CDFI Emergency Loan Loss Reserve Fund, and all but 1st Bergen Federal Credit Union will also take part in the new CDFI Emergency Assistance Grant Program.
 
“CDFIs are a crucial player in New Jersey’s economy that provide financing to businesses and organizations that are too small to qualify for traditional bank financing,” said UCEDC President Adam Farrah. “At a time when so many businesses are suffering and small businesses are at particular risk, the NJEDA’s partnerships with CDFIs will be vital to protecting our economy in the short term and laying the foundation for recovery.”
 
“Under the best of circumstances, business owners in underserved communities still face challenges accessing capital,” said NJCC President Wayne Meyer. "As the COVID-19 pandemic continues, we are finding new ways to help the small businesses that are the economic engines of our local communities and neighborhoods. With the help of the NJEDA, we are working together and across sectors so that these enterprises can fight to keep paying their employees and supporting their families.”
   
In March, the NJEDA announced a suite of COVID-19 initiatives focused on businesses that have been most impacted by the novel coronavirus outbreak: local small businesses, mid-size businesses that have had to close or drastically reconfigure operations, and new businesses that were just getting on their feet before the crisis hit. The programs provide a variety of compatible offerings that address these businesses’ varied needs and include mechanisms to provide funding and assistance as quickly as possible.
 
“Northern New Jersey was hit early and hard by the coronavirus outbreak, and we recognize the long road to recovery our small business customers are facing,” said Robert Moore, CEO of 1st Bergen Federal Credit Union. “Never has it been more important for us to empower and strengthen our local businesses, and the partnership of the NJEDA will expand our reach deeper into our communities.”
 
“While all small businesses are suffering, minority-led microbusinesses that often cannot access traditional bank financing are having a particularly difficult time weathering the COVID-19 outbreak,” said Steven Gomez, Executive Director of GNEC. “During this time, CDFIs are a vital lifeline for these business owners. Working in partnership with the NJEDA will enable us to provide resources to more businesses to help them survive this unprecedented challenge.”
 
The CDFI Emergency Loan Loss Reserve Fund is a $10 million capital reserve fund that the NJEDA will use to take a first loss position on CDFI COVID-related loans that provide low-interest working capital to microbusinesses that have been negatively impacted by the outbreak. The NJEDA will back these loans up to 50% if they default in the future. This will allow the CDFI partners to increase their capacity and participate in more loans, at flexible term and lower interest rates.
 
“Small businesses are the lifeblood of our communities, providing unique, personal service and job opportunities. South Jersey has been hit particularly hard by the COVID-19 outbreak, and we must help these businesses if we are to emerge from social distancing to the same communities we left in March,” said CBAC President and CEO Harry Stone. “CDFIs are an essential resource for these small businesses, and the NJEDA’s support during the COVID-19 outbreak will allow us to expand our capacity to serve more business owners and communities.”
 
The CDFI Emergency Assistance Grant Program is a $1.25 million program that will provide five CDFIs grants of $250,000. These grants will help the CDFIs scale their operations due to the high demand for assistance from business owners and buy down interest rates on their loans to offer borrowers more flexible loan terms at lower rates to help small and micro businesses survive during this COVID-19 outbreak.
 
“Beyond the valuable services and products they supply, small businesses are also an important driver of economic growth that provide good jobs and support local economies,” said RBAC Executive Director William Pazmino. “Ensuring these businesses can survive the COVID-19 outbreak and remain viable as things return to normal will be critical for ensuring a complete recovery. As flexible lenders that can support businesses that do not qualify for traditional financing, CDFIs will be vital during this process. The NJEDA’s support will be an important tool for us as we work to help businesses throughout New Jersey survive today’s challenges and recover in the future.”
 
The NJEDA’s role in these programs is to support participating CDFIs. Businesses and nonprofits seeking financing should contact the CDFIs directly. Comprehensive information about New Jersey’s response to the novel coronavirus outbreak is available here: https://covid19.nj.gov/.
 
 
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, and LinkedIn.
 

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TRENTON –The Department of Environmental Protection (DEP), Board of Public Utilities (BPU) and Economic Development Authority (EDA) today released a strategic funding plan for investing the state’s auction proceeds from the Regional Greenhouse Gas Initiative (RGGI), the cap-and-trade pact among northeastern states dedicated to reducing greenhouse gas emissions from the electricity generating sector. New Jersey plans to invest an estimated $80 million each year in programs that reduce greenhouse gas emissions, drive forward projects that boost clean energy and create jobs, protect the health of residents in environmental justice communities and increase the resiliency of coastal communities. 
 
New Jersey’s renewed participation in RGGI and the investment of proceeds into the clean energy economy and climate change mitigation are key components of the Murphy Administration’s interconnected environmental and economic development goals. In addition, funds from the RGGI auctions will be heavily dedicated to projects that will benefit the state’s environmental justice communities.
 
To help achieve Governor Murphy’s goal of achieving 100 percent clean energy by 2050, as outlined in the Energy Master Plan, the RGGI Strategic Funding Plan emphasizes the goal of electrifying New Jersey’s transportation sector, with a focus on projects that will benefit communities that historically have borne disproportionate burdens of air pollution. Projects developed under the plan will help the state reduce greenhouse gas emissions, leverage funding and stimulate financial opportunities and job creation, improve air quality, and enhance natural resources such as coastal wetlands and forests that sequester carbon emissions.
 
“The RGGI Strategic Funding Plan demonstrates how our state agencies collaborate to help create a brighter future for all New Jerseyans, especially our environmental justice communities,” said Governor Murphy. “As our State responds to COVID-19, we see up close the vital link between public health and economic development, the same relationship that drives our Administration’s efforts to reduce health risks from pollution and climate change through initiatives that also grow our clean energy economy. As we work to ensure that our economy recovers from this pandemic, the investments made under this Plan will promote health, equity, and environmental protection, helping us build a stronger and fairer New Jersey.”
 
Under Governor Murphy’s leadership, New Jersey formally rejoined RGGI this year, after two years of reentry negotiations and rulemaking led by Department of Environmental Protection Commissioner Catherine R. McCabe. In March, the state participated in its first quarterly carbon dioxide (CO2) allowance auction since rejoining, realizing more than $20 million in proceeds. As required by the state’s Global Warming Response Act, the EDA will be responsible for allocating 60 percent of the auction proceeds to qualified projects, and the DEP and BPU will each be responsible for allocating 20 percent.
 
“The RGGI Strategic Funding Plan will help spark transformational changes in New Jersey’s clean energy and transportation systems that will make New Jersey fairer and stronger for generations to come,” DEP Commissioner McCabe said. “This plan gives the state clear direction for investments in programs that reduce greenhouse gas emissions and better protect the health of residents in environmental justice communities. At the same time, the projects spurred by this plan will create opportunities and job growth in green technologies that will help New Jersey emerge stronger from the economic impacts of the current COVID-19 crisis.”
 
“In the same way focusing on fairness makes New Jersey’s economy stronger, protecting our environment can be a path to increased economic growth. Clean energy and sustainability will be particularly important as engines powering New Jersey’s recovery from the unprecedented challenges posed by COVID-19,” said NJEDA Chief Executive Officer Tim Sullivan. “The RGGI Strategic Funding Plan incorporates a variety of strategies to not only preserve our environment for future generations but also spur innovation, job creation, and economic growth.”
 
“Carbon emissions are not confined by state borders, and that’s why this regional collaboration is so critical. While climate change affects us universally, some communities feel those impacts harder than others. I’m especially proud that this strategic plan places special focus on environmental justice communities,” said NJBPU President Joseph L. Fiordaliso. “This plan will put significant resources toward electrifying transportation, especially for low- to moderate-income residents, an area where we can make the broadest, fastest progress on cutting air pollutants and greenhouse gas emissions. With the RGGI Strategic Funding Plan, we will continue to take measurable steps to remediate past environmental inequities and ensure all New Jersey residents can participate in and benefit from New Jersey’s transition to a clean energy future.”
 
Fossil fuel power plants are a significant contributor of carbon dioxide, the primary cause of climate change. RGGI is a cooperative, market-based cap-and-trade program consisting of states in the Northeast that provides incentives to generators of electricity to reduce emissions of carbon dioxide through investments in clean technologies. RGGI holds quarterly auctions of emission credits, proceeds of which states then use to fund projects that advance climate change mitigation goals.
 
Other RGGI states are Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island and Vermont.
 
The RGGI Strategic Funding Plan released today guides how the proceeds from this and future auctions over the next three years will be spent, under four broad initiative areas:
 

  • Catalyzing Clean, Equitable Transportation: All three agencies will work on projects that spur clean and equitable transportation by accelerating the transition to electric transportation throughout the state, with a heavy focus on projects that help environmental justice communities.

 

  • Promoting Blue Carbon in Coastal Areas: New Jersey’s coastal ecosystems are particularly vulnerable to the impacts of climate change, including sea level rise. The DEP is responsible for funding initiatives that will protect and enhance ecosystems such as salt marshes, tidal wetlands and seagrass beds, which are particularly important in the fight against climate change. Blue carbon is the carbon stored by the soils and plants in these marine systems. These ecosystems also create resilience by creating buffers that help protect communities from storms and flooding.

 

  • Enhancing Forests and Urban Forests: The DEP also will focus on projects that restore and improve the health of forests, including urban and community forests. Forests play a critical role in the carbon cycle, serving as a stock of sequestered carbon and continually removing and storing additional carbon from the atmosphere. Additionally, urban and community forests provide shade and reduce the need for energy produced for air conditioning.

 

  • Establishing a New Jersey Green Bank: The EDA will establish a Green Bank to leverage funding and stimulate financial opportunities in New Jersey’s clean energy innovation economy.  Consistent with the Plan’s overall environmental justice objectives, a substantial focus of a New Jersey Green Bank will be improving capital access for those who have traditionally had more difficulty in accessing the benefits of participation in the green economy. In addition to driving new investments and creating new jobs, Green Bank financing mechanisms will accelerate the deployment of clean energy and drive the evolution of the grid and energy infrastructure to be more flexible, resilient, and cost-effective. For example, a Green Bank could support projects such as rooftop solar in low-income areas or energy efficiency retrofits for smaller main street businesses. A Green Bank will also give priority to those projects that provide training and create high-quality jobs for New Jerseyans seeking to benefit from the state’s clean energy transition. 

 
These initiative areas reflect the mandates of the Global Warming Solutions Act, extensive public feedback collected during the 2018 RGGI rulemaking as well as feedback from a public scoping process. The state received valuable input from diverse stakeholders including municipalities, unions, environmental groups, environmental justice advocates, transportation planners, the energy sector and resource conservation groups.
 
Addressing climate change and making New Jersey more resilient to its impacts is a core priority area for Governor Murphy.
 
As one of his first actions upon taking office, Governor Murphy signed Executive Order No. 7, directing New Jersey to re-enter RGGI and take actions to address climate change, with an emphasis on projects benefiting environmental justice communities. The administration has since taken numerous strong actions to address carbon pollution and to make the state more resilient to climate change, including the development of a Statewide Climate Change Resilience Strategy to be publicly released later this year.
 
Governor Murphy has taken other significant steps that inform and guide the funding allocation priorities established by the RGGI Strategic Funding Plan, including:
 

  • Forming the New Jersey Partnership to Plug-In, a first-of-its-kind, statewide partnership to build out the necessary infrastructure to support electric vehicle ownership to improve air quality and reduce greenhouse gas emissions. The partnership creates a strategic and streamlined framework to support New Jersey’s electric vehicle ecosystem, with the goal of registering 330,000 Zero Emission Vehicles (ZEVs) by 2025.

 

  • Signing landmark legislation to boost electric vehicle use in New Jersey by setting aggressive goals for New Jersey electric vehicle sales and public charging stations, requiring the establishment of rebates for electric vehicle purchases, and directing the state to electrify its fleet. 

 

  • Releasing a comprehensive Energy Master Plan that includes rigorous goals and spans multiple sectors and governmental agencies to achieve the Governor’s goal of 100 percent clean energy by 2050. The Energy Master Plan defines clean energy as 100 percent carbon-neutral electricity generation and anticipates that the vast majority of electricity will come from carbon-free resources by 2050.

 

  • Issuing an order directing DEP to develop “NJ Protecting Against Climate Threats,” or NJ PACT, a targeted regulatory reform effort that will modernize environmental laws and regulations to help government, businesses and residents effectively respond to current climate threats and reduce future climate damages.

 
 
To learn more about RGGI, visit www.rggi.org/.
 
For information about RGGI in New Jersey, visit https://nj.gov/rggi/.
 
For information on NJPACT, visit www.nj.gov/dep/njpact/.
 
Follow the DEP on Twitter @NewJerseyDEP.
 
Follow the BPU on Twitter @NJBPU.
 
Follow the EDA on Twitter @NewJerseyEDA.
 
 

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ATLANTIC CITY, NJ (April 16, 2020) – At a special board meeting held on April 7, 2020, the Casino Reinvestment Development Authority (CRDA) approved entering into an agreement with the New Jersey Economic Development Authority to provide $2M in direct assistance for the Small Business Emergency Assistance Grant Program.

 

The funds, being allocated from the CRDA’s General Fund, will be transferred to the NJEDA for the purpose of administering grants through the Small Business Emergency Assistance Grant Program to small businesses impacted by COVID-19 on behalf of the CRDA.

“The CRDA is pleased to partner with the NJEDA in providing grants to small businesses in Atlantic City and Atlantic County,” said CRDA Executive Director Matt Doherty. “These grants will benefit the area and continue the viability of the Tourism District.”

The NJEDA serves as the State’s principal agency for driving economic growth and is uniquely qualified to administer these grants to small businesses in Atlantic City and Atlantic County that are economically impacted by COVID-19. The initiatives EDA has recently authorized include the 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, accommodations, 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.

“The Atlantic County economy has been hit particularly hard by the COVID-19 outbreak, due largely to its high concentration of businesses in the hospitality and entertainment sectors,” said NJEDA Chief Executive Officer Tim Sullivan. “Matt Doherty and his team at the CRDA are clearly committed to the recovery of their local economy and the NJEDA stands ready to help.”

The NJEDA has the sole discretion to determine eligibility and/or criteria for the grants awarded through this program.

 

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About the Casino Reinvestment Development Authority

The only agency of its kind nationwide, the CRDA has used Atlantic City casino reinvestments as a catalyst for meaningful, positive improvement in the lives of New Jersey residents since 1984. Under the 2011 Tourism District Act, the Authority’s mission evolved from statewide projects to becoming the state’s key economic development agency for Atlantic City. CRDA’s expanded responsibilities now include land use regulation, tourism marketing and clean and safe initiatives. The CRDA also oversees Historic Boardwalk Hall (the leading entertainment venue of its size in the country) and the Atlantic City Convention Center. In total, CRDA has invested nearly $2 billion in more than 400 projects statewide, of which $1.8 billion has been invested in Atlantic City, spurring business investments and expansions, and creating permanent jobs in the process. For more information about CRDA and our projects, visit www.njcrda.com, and follow us on Facebook and Twitter.

For destination photos and videos media may visit www.doatlanticcity.com/mediaonline where dozens of assets are available for download. For complete Atlantic City tourism information, visit www.doatlanticcity.com, and follow us on Facebook, Twitter, Instagram.

 

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.

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TRENTON, N.J. (April 15, 2020) – In response to the ongoing COVID-19 pandemic, the New Jersey Economic Development Authority (NJEDA) has extended the deadline to submit responses to its request for information (RFI) seeking input on the need for a “Green Fund” to support investments in clean energy technology. Responses will now be accepted through May 29, 2020. The RFI is available online at https://www.njeda.gov/Bidding-Opportunities-General/Economic-Transformation-RFIs.

The RFI, released on March 10, seeks input from all individuals and organizations that have an interest in how a Green Fund may be established and operate in the State, including commercial banks, specialty lenders, businesses developing clean energy initiatives in New Jersey, current and potential suppliers within the clean energy supply chain, and organizations with specialized knowledge and expertise related to the creation and operation of green banks, green funds, and similar financing mechanisms. The questions focus on standing up the proposed Green Fund as well as how to best manage it over the long term to ensure the greatest benefit for New Jersey.

“Increasing private investment in the deployment of clean energy is vital to achieving Governor Murphy’s goal of
setting New Jersey on a path to 100% clean energy by 2050,” said NJEDA Chief Executive Officer Tim Sullivan. “We want to be sure that anyone who wants to provide insight in response to this RFI is not hindered in doing so due to the COVID-19 outbreak.”

Governor Murphy’s New Jersey Energy Master Plan sets forth a robust, actionable set of seven strategies and recommendations to enable the State to achieve its ambitious commitments to expanding clean energy and reducing greenhouse gas emissions between now and 2050. The plan recognizes that meeting these commitments will require a significant amount of private capital investment—and that New Jersey’s government can and should play a critical role in mobilizing this capital by expanding opportunities for innovative and low-cost financing and leveraging public dollars to grow private sector investment

All RFI responses must be submitted in writing no later than 11:59pm ET, on May 29, 2020 via e-mail to: RFI-PotentialGreenFund@njeda.com . The subject line of the e-mail should state: “RFI Response-2020-RFI-OET-CE- 102-Potential Green Fund.” 

To read Governor Murphy's full economic plan, please visit: https://nj.gov/economicplan
 
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.
 
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, and LinkedIn.
 

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TRENTON, N.J. (April 14, 2020) – In response to the COVID-19 outbreak in New Jersey, the New Jersey Economic Development Authority (NJEDA) Board today modified reporting requirements for businesses receiving tax credits through the Grow New Jersey (Grow NJ) and Urban Transit Hub (HUB) programs. Companies that have been approved for tax credits through these programs must submit annual reports that include the average of the number of workers they employed each month during the previous year. The rule change modifies these reporting requirements to exclude months during which Governor Phil Murphy’s Executive Order 107 (EO 107) is in effect if the business can demonstrate COVID-19 prevented employees from working at the qualified business facility and there are no viable work-from-home options.
 
“The COVID-19 outbreak has created unprecedented challenges for the State of New Jersey and our business community. Governor Murphy’s comprehensive, proactive response is what we need, but the pandemic is having a significant impact on businesses of all sizes,” said NJEDA Chief Executive Officer Tim Sullivan. “Modifying the reporting deadlines for these incentive programs will ensure that we uphold our commitment to transparency and accountability while providing businesses the flexibility to do what they need to address the immediate hurdles they face and support their employees during this difficult time.”
 
On March 21, 2020, Governor Murphy issued EO 107, announcing a statewide stay at home order and closure of all non-essential retail business, requiring all employers to offer work-form-home wherever practicable, and directing all residents to abide by social distancing practices.
 
Under the existing rules for the Grow NJ and HUB programs, award recipients must submit a report for each year of the award to demonstrate that the business has satisfied the program’s employment requirement. This report includes the number of workers the recipient employed over the past year, determined by averaging the number of employees for each month. Under the rule change approved today, this average will exclude the months during which EO 107 is in effect for recipients that are unable to (1) continue regular employment at the qualified business facility and (2) provide work-from-home opportunities.
 
To qualify for this waiver, a business must verify it is not deemed essential under EO 107 or has limited employee attendance at its qualified business facility as a result of adherence to social distancing restrictions. The company’s CEO must also certify and explain, to the satisfaction of NJEDA staff, that employees could not perform their duties remotely.
 
In addition to these requirements, the NJEDA, in limited instances, will re-administer the Net Benefits Test, which ensures the economic benefit a company brings to New Jersey is greater than the amount that business will receive in tax credits, to account for the excluded months. If the recalculated Net Benefit model reduces the net benefit below the minimum required amount, the business’s award will be reduced until the net benefit requirement is satisfied. The reduction will be taken out of the 2020 annual tax credit allocation.
 
Comprehensive information about New Jersey’s response to the COVID-19 outbreak is available at https://covid19.nj.gov/. The NJEDA encourages award recipients with specific questions to reach out to their assigned Incentives Officer.
 
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, and LinkedIn.
 

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TRENTON, N.J. (April 13, 2020) – In response to the COVID-19 outbreak in New Jersey, the New Jersey Economic Development Authority (NJEDA) has extended the annual reporting deadlines for businesses that received tax credits through the Grow New Jersey (Grow NJ), Economic Redevelopment and Growth (ERG), and Urban Transit Hub (HUB) programs. Under the extension, annual reports will be due 90 days after the NJEDA notifies businesses the restrictions imposed by Governor Phil Murphy’s Executive Order 107 (EO 107) are no longer in effect.
 
On March 21, 2020, Governor Murphy issued EO 107, generally announcing a statewide stay at home order and closure of all non-essential retail business, requiring all employers to offer work-form-home wherever practicable, and directing all residents to abide by social distancing practices. The Governor has since announced subsequent containment measures. 
 
Under existing rules for the Grow NJ and HUB programs, award recipients must submit an annual report 120 days after the end of the relevant tax period. Failure to timely submit this report results in forfeiture of the tax credit for that tax period. Similarly, residential and mixed-use parking ERG approval letters require an annual report for a developer’s tax period within 120 days after the end of the tax period. Failure to timely submit this report results in the forfeiture of the tax credits for that tax period.
 
Due to the extenuating circumstances arising from the restrictions EO 107 places on businesses, the NJEDA shall extend the 120-day reporting requirement for 2019 annual reports due during the time period in which the EO 107 restrictions are in place to 90 days after the NJEDA notifies businesses such restrictions are no longer in effect.
 
Comprehensive information about New Jersey’s response to the COVID-19 outbreak is available at https://covid19.nj.gov/. The NJEDA encourages award recipients with specific questions to reach out to their assigned Incentives Officer.
 
 
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, and LinkedIn.
 

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TRENTON, N.J. (April 13, 2020) – The New Jersey Economic Development Authority (NJEDA) today announced it will be accepting donations from individuals and companies to support the Authority’s Small Business Emergency Assistance Grant Program, which provides grants to New Jersey small businesses impacted by the COVID-19 outbreak. Individuals and companies interested in making a donation should contact donation@njeda.com.
 
“Small businesses are the heartbeat of New Jersey’s economy. Ensuring they have the resources they need to withstand the COVID-19 outbreak is critical to keeping our economy afloat and setting the stage for a strong recovery,” said NJEDA Chief Executive Officer Tim Sullivan. “Due to the unprecedented scale of this outbreak, demand for emergency support is greatly outpacing what the NJEDA can provide alone. We encourage companies and individuals that have the means to help to step in so we can expand this program to serve the many businesses that need help.”
 
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. 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. A description of the Program can be found at https://faq.business.nj.gov/en/articles/3835237-how-do-i-apply-to-the-njeda-small-business-emergency-assistance-grant-application-now-open-here.
 
For the NJEDA to effectively administer the Program, gifts to support the Small Business Emergency Assistance Grant Program must be at least $100,000. The gifts must be unrestricted and without conditions. To avoid conflicts of interest, donors must have no existing contracts with the NJEDA and may not enter into a contract with the Authority for at least six months following the donation. This includes tax incentive agreements, financial assistance, bond contracts, leases, and other contracts.
 
Individuals and companies interested in donating to support the Small Business Emergency Assistance Grant Program should contact donation@njeda.com. NJEDA will provide a form letter that the Donor must complete and sign. Comprehensive information about New Jersey’s response to the novel coronavirus outbreak is available here: https://covid19.nj.gov/.
 
 
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, and LinkedIn.
 

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COVID-19 Outbreak
New Jersey Economic Development Authority (NJEDA)
Small Business Emergency Assistance Loan Program
 
Overview
 
On March 9, 2020, Governor Phil Murphy issued Executive Order 103, declaring a State of Emergency and a Public Health Emergency to ramp up New Jersey’s efforts to contain the spread of COVID-19. Subsequent containment measures were announced and are continuing to be announced, including restrictions on public gatherings and limited operating hours for non-essential businesses. While these measures are consistent with similar measures being taken nationally that are expected to limit the public’s exposure to COVID-19, there is already and will continue to be an adverse economic impact on our nation’s economy.
 
Within New Jersey, small businesses, and residents employed by these businesses, are facing economic challenges as businesses have difficulties meeting payroll obligations and supporting basic operating expenses that are expected to increase during a prolonged period of restricted operation or closing. Without a source of immediate relief, small businesses are being forced to furlough or lay off employees. Accordingly, the State of New Jersey is taking early action on a set of economic stability measures to provide short-term cash flow support to small businesses and increase overall business confidence, with the following objectives:
 

  • Get funding into the market as soon as possible;
  • Where possible, adjust existing NJEDA programs to address crisis needs;
  • Utilize multiple channels/partners to maximize marketing of programs and minimize processing capacity constraints;
  • Leverage private, federal, and philanthropic capital where possible to scale impact; and
  • Provide a suite of compatible offerings to help address varied marketplace needs (e.g., grants, no-cost loans, low-cost loans, loans through intermediaries, technical assistance).

 
Purpose
 
The Small Business Emergency Assistance Loan Program provides low-cost financing available to cover operating expenses and ensure continuity of operation for New Jersey small businesses and non-profit organizations that have been impacted by COVID-19.
 
Loan Amounts
 
Under the Small Business Emergency Assistance Loan Program, small businesses and non-profit organizations in existence for at least one year before the date of application having less than $5 million in annual revenue and a physical commercial location (not including home business locations) in New Jersey may be eligible for a direct loan of up to $100,000.
 
In recognition of the purpose of the financing and recognizing that entities facing economic challenges can only benefit from financing that is low-cost and has flexible terms, the NJEDA has structured these loans with a 10-year term and amortization, with the first five years at a fixed interest rate of 0 percent, and the remaining five years at the Authority’s prevailing interest rate floor (capped at 3.00 percent), with deferred repayments for 12 months, and an additional 6 months of deferral, if needed. The NJEDA’s interest rate floor is fixed, only changed by the EDA per a policy decision, and not based on prevailing market conditions similar to a US Treasury rate.
 
An eligible entity must be able to show a global debt service coverage ratio of 1.00 in the fiscal year prior to the Governor’s issuance of Executive Order 103 on March 9, 2020. Financial statements provided may be CPA prepared, management prepared, or filed copies of business tax returns.    
 
For guarantors, unlimited personal guarantees of individuals having a 10 percent or more ownership in for-profit applicants and related entities will be required. Personal guarantees will not be applicable for non-profit organizations. Consistent with the approach that is being taken by the federal Small Business Administration in its emergency loans, the EDA will require the borrower to pledge all available collateral for the loan which may include real estate if available.  No loans will be declined for a lack of collateral.
 
 Eligible Uses
           
The financing available under the Small Business Emergency Assistance Loan Program may be used as working capital to support business continuity for a range of COVID-19 related impacts to businesses (reduced revenue, employee shortage, supply chain impact, etc.)
 
Eligible Applicants
 
In order to be eligible, entities shall be small businesses and non-profit organizations in existence for at least one year before the date of application having less than $5 million in annual revenue and a physical commercial location (not including home business locations) in New Jersey.
 
The eligible entity must have a physical commercial location in the State of New Jersey (e.g., an office, a physical point of sales, a warehouse, manufacturing facility, etc.). Home-based businesses are not eligible for this program; however, non-profit organizations are eligible.
 
The CEO/equivalent officer of the applying entity must self-certify that the firm:
 

  • 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 (entities 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 immediate repayment of the outstanding amount of the loan; and
  • Has been negatively impacted by the COVID-19 declared state of emergency on or after March 9, 2020 (e.g., has been temporarily shut down, has been required to reduce hours, has had at least a 20 percent 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).

 
In addition, the applying entity must be registered to do business in the State of New Jersey; have an up-to-date Tax Clearance Certificate from the New Jersey Department of Treasury at time of approval; and must be in good standing with the New Jersey Department of Labor and Workforce Development.
 
Prohibited businesses include, but are not limited to: gambling or gaming activities; the conduct or purveyance of “adult” (i.e., pornographic, lewd, prurient, obscene or otherwise similarly disreputable) activities, services, products or materials (including nude or semi-nude performances or the sale of sexual aids or devices); any auction or bankruptcy or fire or “lost-our-lease” or “going-out-of-business” or similar sale; sales by transient merchants, Christmas tree sales or other outdoor storage; any activity constituting a nuisance; or any illegal purposes.
 
Application Process
           
Applications will be accepted until all funding is exhausted or through the end of the declared emergency and public health emergency.
 
Fees
           
Due to financial hardship, there will be no fees associated with the Small Business Emergency Assistance Loan Program for the first five years of a loan, including application fees, and then standard modification fees will apply.
 
Additional Information
 
Additional information on the Small Business Emergency Assistance Loan Program may be found at https://faq.business.nj.gov/en/collections/2198378-information-for-nj-businesses-on-the-coronavirus-outbreak.

TRENTON, N.J. (7 de abril de 2020) – En respuesta a la actual pandemia de COVID-19, New Jersey Economic Development Authority (NJEDA) ha extendido el plazo para presentar las respuestas a su solicitud de información (RFI) que busca recopilar información sobre las opciones para aumentar el acceso al capital a las empresas emergentes dirigidas por personas de origen latino y afroamericano en New Jersey. Se recibirán respuestas hasta el 29 de julio de 2020. La RFI está disponible en línea en https://www.njeda.gov/Bidding-Opportunities-General/Economic-Transformation-RFIs.

La RFI, emitida el 27 de febrero de 2020, ayudará a NJEDA a comprender completamente el alcance y las características de los desafíos que enfrentan los empresarios y emprendedores de origen latino y afroamericano al intentar acceder al capital público y privado. De acuerdo con una encuesta reciente llevada a cabo por Diversity VC y Rate My Investor, a nivel nacional, menos del uno por ciento de las inversiones de capital de riesgo se destinan a empresas que son propiedad de afroamericanos y menos del dos por ciento, a empresas que son propiedad de latinos. Esto no solo priva a los miembros de estas poblaciones de oportunidades, sino que también crea enormes costos de oportunidad al privar a las economías e industrias de la amplia gama de perspectivas y experiencias que podrían aportar los miembros de las poblaciones marginadas.

“Si bien debemos centrarnos de inmediato en ayudar a estabilizar a las pequeñas empresas durante este período de crisis, nuestros compromisos y principios a largo plazo se mantienen intactos como siempre bajo el liderazgo del Gobernador Murphy, incluida la creación de la economía de innovación más diversa e inclusiva del país”, afirmó Tim Sullivan, Director Ejecutivo de NJEDA. “Extender la fecha límite de la RFI garantizará que los miembros de la comunidad de innovación de New Jersey tengan tiempo suficiente para brindar sus aportes”.

La RFI busca el aporte de una amplia variedad de interesados, incluidos administradores de fondos, inversores ángeles, capitalistas de riesgo, propietarios de pequeñas empresas, investigadores y profesionales que trabajen en el ámbito empresarial, grupos industriales y comerciales, y otros gobiernos estatales. Las preguntas incluidas en la RFI abordan las necesidades de las empresas latinas y afroamericanas, y solicitan sugerencias acerca de cómo estructurar soluciones de la mejor manera, incluso atraer fondos de capital inicial existentes a New Jersey o crear un nuevo fondo de capital inicial con un enfoque específico en tales empresas. NJEDA considera como posible solución la creación de un fondo de capital inicial para la diversidad que se centraría en destinar capital a las empresas latinas y afroamericanas. 

Todas las preguntas relacionadas con esta RFI se deben enviar por escrito antes de las 11:59 p. m., hora del este, del día 30 de junio de 2020 a RFI-ExpandingSeedCapital@njeda.com. El asunto del correo electrónico debe contener lo siguiente: “Questions-2020-RFI-099: Expanding Seed Capital to Black and Latinx Entrepreneurs.” Las respuestas a estas preguntas se publicarán en el sitio web de EDA el 13 de julio de 2020, o alrededor de esa fecha.
 
Las respuestas a la RFI se deben enviar por escrito antes de las 11:59 p. m., hora del este, del día 29 de julio de 2020 a RFI-ExpandingSeedCapital@njeda.com. El asunto del correo electrónico debe contener lo siguiente: “RFI Response-2020-RFI-099: Expanding Seed Capital to Black and Latinx Entrepreneurs.”
 
Para leer el plan económico completo del Gobernador Murphy, visite https://nj.gov/economicplan
 
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.
 
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, and LinkedIn.