TRENTON, N.J. (April 7, 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 insights into the ways to increase access to capital for Black- and Latinx-led start-ups in New Jersey. Responses will now be accepted through July 29, 2020. The RFI is available online at https://www.njeda.gov/Bidding-Opportunities-General/Economic-Transformation-RFIs.

The RFI, issued on February 27, 2020, will help the NJEDA fully understand the scope and characteristics of the challenges Black and Latinx business owners and entrepreneurs face when attempting to access public and private capital. According to a recent survey by Diversity VC and Rate My Investor, nationwide less than one percent of all venture capital investments go to Black-owned firms and less than two percent of investments go to Latinx-owned companies. This not only deprives members of these populations of opportunity, but also creates massive opportunity costs by depriving economies and industries of the wide array of perspectives and experiences members of underserved populations could contribute.

“While our immediate focus has to be on helping stabilize small businesses through this crisis period, our long-term commitments and principles remain what they have always been under Governor Murphy’s leadership, including creating the most diverse and inclusive innovation economy in nation,” said NJEDA Chief Executive Officer Tim Sullivan. “Extending the RFI deadline will ensure that members of New Jersey’s innovation community have sufficient time to provide their input.”

The RFI seeks input from a diverse range of stakeholders, including fund managers, angel investors, venture capitalists, small-business owners, researchers and practitioners involved in entrepreneurship work, industry and trade groups, and other states’ governments. Questions included in the RFI address Black and Latinx businesses’ needs and solicit suggestions for how to best structure solutions, including attracting existing seed funds to New Jersey or creating a new seed fund with a specific focus on such businesses. One potential solution the NJEDA is considering is a diversity seed fund that would focus on driving capital to Black- and Latinx-owned enterprises. 

All questions concerning this RFI must be submitted in writing no later than 11:59 PM EST on June 30, 2020 to RFI-ExpandingSeedCapital@njeda.com. The subject of the email should read: “Questions-2020-RFI-099: Expanding Seed Capital to Black and Latinx Entrepreneurs.” Answers to these questions will be publicly posted on the Authority’s website on or about July 13, 2020.
 
RFI responses must be submitted in writing no later than 11:59 PM EST on July 29, 2020 to RFI-ExpandingSeedCapital@njeda.com. The subject line of the email should read “RFI Response-2020-RFI-099: Expanding Seed Capital to Black and Latinx Entrepreneurs.”
 
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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Please be advised that the meeting of the New Jersey Economic Development Authority scheduled
for 10:00 AM, Tuesday, April 14, 2020 is a telephonic meeting only.
 
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 numbers are provided for the public to call in for the meeting:
 
NJEDA BOARD MEETING
PARTICIPANT DIAL-IN NUMBERS:   800-459-5343 OR 203-518-9553
PARTICIPANT AUTOMATED CONFERENCE ID:   24874
 
Please note there may be a delay in accessing the conference line, so members of the public are encouraged to call in at least 15 minutes prior to the time scheduled to begin.

.A copy of the proposed agenda can be found prior to the meeting at www.njeda.gov/Board. Following the Board Meeting, minutes and the full agenda will also be available at www.njeda.gov/Board.

TRENTON, N.J. (April 3, 2020) – The New Jersey Economic Development Authority (NJEDA) will launch the application for its Small Business Emergency Assistance Loan Program on Monday, April 13, 2020 at 9:00 am.  A link to the program application will be posted on the State’s COVID-19 Business Information Hub. To provide business owners the opportunity to prepare to apply for the loan, a .pdf version of the application will become available on Monday, April 6th. The loan program is part of a package of initiatives announced last week to support businesses and workers facing economic hardship due to the outbreak of the novel coronavirus COVID-19.
 
“Small businesses are the heartbeat of New Jersey’s economy. They make our communities unique and vibrant, provide good jobs, and keep our economy running. 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. “The emergency loan program will provide critical resources to businesses that have been hit hardest by the outbreak and need to stay open and maintain their workforces through this challenging time.”
 
The NJEDA’s COVID-19 initiatives focus on businesses that have been hit hardest 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 suite of compatible offerings that address these businesses’ varied needs and include mechanisms to provide funding and assistance as quickly as possible.
 
The Small Business Emergency Assistance Loan Program is a $10 million program that will provide working capital loans of up to $100,000 to small and mid-size businesses with a physical commercial location in New Jersey. To qualify, businesses must have less than $5 million in annual revenues and be able to show a negative impact resulting from the COVID-19 outbreak. Loans made through the program will have ten-year terms with zero percent interest for the first five years, then resetting to the NJEDA’s prevailing floor rate for the remaining five years, with a three percent cap.
 
Applications for the NJEDA’s Small Business Emergency Assistance Grant Program are currently available and Applications for other NJEDA COVID-19 programs, including entrepreneurship support and technical assistance for businesses applying for U.S. Small Business Administration loans, will be available in the coming weeks.
 
Businesses and nonprofits can find eligibility requirements for all programs on the COVID-19 Business Information Hub or use the Eligibility Wizard to identify which emergency assistance programs they may want to consider for their business’s specific needs. 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, N.J. (3 de abril de 2020) – New Jersey Economic Development Authority (NJEDA) dará comienzo a las solicitudes para el Small Business Emergency Assistance Loan Program (Programa de Préstamos para Asistencia de Emergencia a Pequeñas Empresas) el lunes, 13 de abril de 2020 a las 9:00 a. m. Se publicará un enlace a la solicitud para el programa en el Centro de Información para Empresas sobre la COVID-19 del Estado. A fin de dar a los empresarios la oportunidad de prepararse para solicitar el préstamo, el lunes, 6 de abril se pondrá a disposición una versión en .pdf de la solicitud. El programa de préstamos forma parte de un paquete de iniciativas anunciadas la semana pasada para ayudar a las empresas y a los trabajadores con dificultades económicas debido al brote del nuevo coronavirus, COVID-19.
 
“Las pequeñas empresas marcan el pulso de la economía de New Jersey. Hacen que nuestras comunidades sean únicas y dinámicas, proporcionan buenos empleos y mantienen nuestra economía en funcionamiento. Garantizar que cuenten con los recursos necesarios para hacer frente al brote de la COVID-19 es esencial para mantener nuestra economía a flote y sentar las bases para una sólida recuperación”, expresó Tim Sullivan, Director Ejecutivo de NJEDA. “El programa de préstamos para emergencias ofrecerá recursos críticos para las empresas que se han visto más afectadas por el brote y necesitan mantener sus puertas abiertas, además de a su fuerza laboral, en este momento tan complejo”.
 
Las nuevas iniciativas de NJEDA respecto de la COVID-19 se centran en las empresas que resultaron más afectadas por el brote del nuevo coronavirus: empresas locales pequeñas, empresas medianas que han tenido que cerrar o reconfigurar drásticamente sus operaciones, y empresas nuevas que estaban recién en sus inicios cuando comenzó la crisis. Los programas proporcionan un conjunto de ofertas compatibles que abordan las diferentes necesidades de estas empresas e incluyen mecanismos para proporcionar financiación y asistencia lo más rápido posible.
 
El Small Business Emergency Assistance Loan Program (Programa de Préstamos para Asistencia de Emergencia a Pequeñas Empresas) es un programa de $10 millones que proporcionará préstamos de capital de trabajo de hasta $100,000 a pequeñas y medianas empresas ubicadas físicamente en New Jersey. Para calificar, las empresas deben tener ingresos anuales inferiores a $5 millones y ser capaces de demostrar un impacto negativo como resultado del brote de la COVID-19. Los préstamos realizados a través del programa tendrán plazos de diez años con cero por ciento de interés durante los primeros cinco años, luego se restablecerán a la tasa mínima vigente de la NJEDA durante los cinco años restantes, con un interés máximo del tres por ciento.
 
Las solicitudes para el Small Business Emergency Assistance Grant Program (Programa de Subsidios para Asistencia de Emergencia a Pequeñas Empresas) de NJEDA están disponibles actualmente y, las solicitudes para otros programas sobre COVID-19 de NJEDA, que incluyen apoyo empresarial y asistencia técnica para quienes soliciten préstamos de la U.S. Small Business Administration estarán disponibles en las próximas semanas.
 
Las empresas y las organizaciones sin fines de lucro pueden encontrar los requisitos de elegibilidad para todos los programas en el Centro de Información para Empresas sobre la COVID-19 o utilizar el Asistente de Elegibilidad para identificar qué programas de asistencia para emergencias desean considerar según las necesidades específicas de su empresa. La información completa sobre la respuesta de New Jersey ante el brote del nuevo coronavirus está disponible en https://covid19.nj.gov/.
 
 
Acerca de la New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) funciona como la principal agencia del Estado para impulsar el crecimiento económico. La NJEDA está comprometida a hacer de New Jersey un modelo nacional de desarrollo económico inclusivo y sostenible centrándose en las estrategias fundamentales para ayudar a desarrollar comunidades más fuertes y dinámicas, generar buenos puestos de trabajos para los residentes de New Jersey y ofrecer vías para una economía más sólida y justa.
 
Para obtener más información sobre los recursos de la NJEDA para empresas, llame a Atención al Cliente de NJEDA al 609-858-6767 o visite https://www.njeda.gov y siga a @NewJerseyEDA en Facebook, Twitter y LinkedIn.
 

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COVID-19 Outbreak
New Jersey Economic Development Authority (NJEDA)
Community Development Financial Institution (CDFI) Emergency Assistance Grant Program
Notice of Funding Availability: Application Will Open at 9:00am on Wednesday April 8, 2020 on https://application.njeda.com/. 
 

Only NJ-based Community Development Financial Institutions (CDFI) may apply for this grant funding.

 
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 Community Development Financial Institution (CDFI) Emergency Assistance Grant Program is a pilot program to make grants to CDFIs to support them to scale up assistance to micro and small businesses negatively impacted by the COVID-19/novel coronavirus (“COVID-19”) outbreak. The program will provide much needed flexible support that either could offset incremental operating costs due to a surge in COVID-19 related lending or to enhance the CDFI’s loan offerings by buying down interest rates on COVID-19 business loans. 
 
Eligible Applicants:
 
Under the CDFI Emergency Assistance Grant Program, an eligible applicant must:
 

  • Be a NJ-based Community Development Finance Institution (CDFI) that has been in existence for at least 10 years;
  • Demonstrate it is a current CDFI through documentation provided by the U.S. Department of Treasury;
  • Complete a simplified debarment legal questionnaire;
  • Produce a current NJ Tax Clearance Certificate and be verified in good standing with Department of Labor; and
  • Demonstrate the following key factors:

 

  • Significant experience working with underserved small business segments (additional consideration will be given for experience working on emergency assistance programs);
  • Available capital that could be leveraged in COVID-19-related emergency low-cost and low-interest working capital loans;
  • Significant experience working in communities and business segments underserved by the banking sector and other financial institutions;
  • Quality of a plan that outlines the intended uses of the grant funding that include offsetting an increase in operating expenses associated with the COVID-19 emergency or buying down the cost of funding to allow lower cost loans for COVID-19 emergency loan programs;
  • Quality of a plan that outlines the intended uses of the grant funding, including offsetting an increase in operating expenses associated with the COVID-19 emergency or buying down the cost of funding to allow lower cost loans for COVID-19 emergency loan programs; and
  • Deep experience and focus on small business lending, as evidenced by having a significant portion of the CDFI’s lending portfolio be with small businesses (additional consideration will be given for having a portion of its lending portfolio with emergency assistance programs).

 
Finally, any CDFI that participates in this program is not eligible to participate in the Small Business Emergency Assistance Loan Program.
 
Grant Amounts
 
Each eligible CDFI can qualify for up to $250,000 in grant funds; and, will have up to 12 months to utilize their grant funds.
 
Eligible Uses
           
The grant funding available through the CDFI Emergency Assistance Grant Program can be used to: support the scale-up of the origination, technical support, and underwriting capacity of these CDFIs, including hiring staff; and allow the CDFIs to buy down interest rates on any COVID-19 related emergency working capital loan, thereby providing impacted businesses with lower-costs and more flexible financing.
 
Funding Disbursement
 
Upon approval from the NJEDA, the grant funding will be disbursed to the CDFI. Authority staff will require documentation on a quarterly basis validating the operational expenses or interest buy down for which the CDFI requested the grant disbursement, which may include, but not be limited to: detailed invoices, statements, detailed receipts, or internal financials. A CDFI may receive a grant under this program and also participate in the Community Development Finance Institution (CDFI) Loan Loss Reserve Fund and Small Business Emergency Assistance Guarantee Program.

Application Process
 
CDFIs will apply for the program through an online application which will include a basic web-form questionnaire, a one to three-page narrative of the CDFI’s plans for use of the funds, and disclosure of key financial metrics, such as availability of capital. Other necessary documentation will be identified and requested in the application. Given the urgency of which funding and resources are needed by micro and small-businesses, applications will be reviewed and approved on a rolling basis and the program will be closed once the funding is exhausted.
 
Fees
           
Due to financial hardship, no fees will be collected by the Authority for this program.
 
Additional Information
 
Additional information on the Community Development Financial Institution (CDFI) Emergency Assistance Grant Program may be found at https://faq.business.nj.gov/en/collections/2198378-information-for-nj-businesses-on-the-coronavirus-outbreak.

Este es el primero de muchos programas diseñados para hacer frente a los desafíos económicos relacionados con la COVID

TRENTON, N.J. (1 de abril, 2020) – New Jersey Economic Development Authority (NJEDA) dará comienzo a las solicitudes para el Small Business Emergency Assistance Grant Program (Programa de Subsidios para Asistencia de Emergencia a Pequeñas Empresas) el viernes, 3 de abril de 2020 a las 9:00 a. m. Se publicará un enlace a la solicitud del programa de subsidios en el Centro de Información para Empresas sobre la COVID-19 del estado. El programa de subsidios forma parte de un paquete de iniciativas anunciadas la semana pasada para ayudar a las empresas y a los trabajadores con dificultades económicas debido al brote del nuevo coronavirus, COVID-19.

“El inicio de las solicitudes del programa de subsidios es un paso fundamental en el apoyo del Estado a las pequeñas y medianas empresas que sienten el impacto del reciente brote de coronavirus”, afirmó Tim Sullivan, Director Ejecutivo de NJEDA . “El sustento de los empresarios y sus empleados depende de en qué medida sus empresas pueden hacer frente a este desafío con éxito. Bajo el liderazgo del Gobernador Phil Murphy, el Estado se compromete a ofrecer recursos que ayudarán a las empresas en su recuperación”.

Las nuevas iniciativas de NJEDA respecto de la COVID-19 se centran en las empresas que resultaron más afectadas por el brote del nuevo coronavirus: empresas locales pequeñas, empresas medianas que han tenido que cerrar o reconfigurar drásticamente sus operaciones, y empresas nuevas que estaban recién en sus inicios cuando comenzó la crisis. Los programas proporcionan un conjunto de ofertas compatibles que abordan las diferentes necesidades de estas empresas e incluyen mecanismos para proporcionar financiación y asistencia lo más rápido posible.

NJEDA desarrolló estos programas de ayuda con base en los resultados de una encuesta en línea de pequeñas y medianas empresas realizada durante los días 20 y 21 de marzo. La encuesta, que se realizó en inglés y español, recibió más de 2,000 respuestas. Entre los resultados clave que sirvieron de base para los nuevos programas de NJEDA se incluyen los siguientes:
 

  • La COVID-19 ha tenido un impacto significativo en la comunidad empresarial de New Jersey, con informes de pérdidas de ingresos o compromisos contractuales en el 73 % de las organizaciones encuestadas. El impacto en los servicios de alojamiento y alimentos y los sectores relacionados con el arte y el entretenimiento ha sido particularmente grave.
  • Muchas empresas prevén la necesidad de despedir trabajadores si la asistencia no está disponible, y el 52 % de los encuestados sugiere que podría ser necesario realizar despidos temporales si no reciben apoyo en los próximos tres meses.
  • Las empresas necesitan asistencia financiera, pero no solicitan grandes sumas. El 96 % de los encuestados predijo que necesitarían asistencia financiera en los próximos tres meses, con un monto promedio de fondos de entre $50,000 y $75,000.

Las solicitudes para otros programas sobre COVID-19 de NJEDA, que incluyen préstamos de bajo interés o sin interés, apoyo empresarial y asistencia técnica para quienes soliciten préstamos de la U.S. Small Business Administration estarán disponibles en las próximas semanas. Las empresas y las organizaciones sin fines de lucro pueden encontrar los requisitos de elegibilidad para todos los programas en el Centro de Información para Empresas sobre la COVID-19 o utilizar el Asistente de Elegibilidad para identificar qué programas de asistencia para emergencias desean considerar según las necesidades específicas de su empresa. La información completa sobre la respuesta de New Jersey ante el brote del nuevo coronavirus está disponible en https://covid19.nj.gov/.

Pautas de elegibilidad para Small Business Emergency Assistance Grant Program
Las empresas que presenten solicitudes para el Small Business Emergency Assistance Grant Program (Programa de Subsidios para Asistencia de Emergencia a Pequeñas Empresas) deben proporcionar lo siguiente:

  1. Un contacto autorizado para hablar en nombre de la empresa.
  2. Información básica sobre la empresa:
    1. Nombre legal registrado o con el que opera (disponible aquí: https://www.njportal.com/DOR/BusinessNameSearch/Search/BusinessName.
    2. Número de identificación del empleador (Employer Identification Number, EIN) federal.
    3. Año de constitución de la empresa.
    4. Empleados de tiempo completo y empleados de tiempo parcial al 31 de diciembre de 2019.
  3. Industria, según se define en su código NAICS (disponible aquí: https://www.naics.com/search/).
  4. Respuestas a las preguntas básicas sobre exclusión del Estado (Consulte el archivo .pdf de la solicitud aquí: https://cv.business.nj.gov).
  5. Certificación de que la empresa:
    1. No es un negocio que se desarrolla en el hogar.
    2. No es una empresa prohibida.
    3. Resultó afectada por el brote de la COVID-19.
    4. Tiene una necesidad financiera sustancial que no puede superar sin los fondos del subsidio.
    5. Hará su mejor esfuerzo para no despedir a ningún empleado adicional y volver a contratar a cualquiera que ya haya sido despedido.
    6. Es posible que NJEDA verifique los datos que usted presente con otras fuentes de datos estatales.

 
NJEDA desarrolló una Calculadora de estimación del importe del subsidio para ayudar a las empresas elegibles a comprender cuál sería el posible monto que recibirían.

Acerca de la New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) funciona como la principal agencia del Estado para impulsar el crecimiento económico. La NJEDA está comprometida a hacer de New Jersey un modelo nacional de desarrollo económico inclusivo y sostenible centrándose en las estrategias fundamentales para ayudar a desarrollar comunidades más fuertes y dinámicas, generar buenos puestos de trabajos para los residentes de New Jersey y ofrecer vías para una economía más sólida y justa.
 
Para obtener más información sobre los recursos de la NJEDA para empresas, llame a Atención al Cliente de NJEDA al 609-858-6767 o visite https://www.njeda.gov y siga a @NewJerseyEDA en Facebook, Twitter y LinkedIn.

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COVID-19 Outbreak
New Jersey Economic Development Authority (NJEDA)
Small Business Emergency Assistance Grant Program
Notice of Funding Availability: Application Will Open at 9:00am on Friday April 3, 2020 on https://cv.business.nj.gov.

 
 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 purpose of the Small Business Emergency Assistance Program is to provide short-term, immediate payroll and working capital support to New Jersey small and medium sized enterprises (businesses and non-profits) (SMEs), between one and 10 full-time employees (FTEs), facing prolonged operating restrictions or closure due to the COVID-19 outbreak, thereby helping to stabilize their operations and minimizing any potential furloughs and/or layoffs.
 
Eligible Uses
           
Under the Small Business Emergency Assistance Grant Program, funding may be used for unrestricted payroll and working capital support; however, funding cannot be used for capital expenses, including construction.
 
Grant Amounts           
 
Eligible businesses may receive $1,000 per FTE, with the calculation based on the WR-30 filing from the most recent payroll period from date of application. The minimum grant amount (per application) is $1,000; and maximum grant amount (per application) is $5,000.
 
While the maximum grant amount per SME is $5,000, specific grants amounts will be calculated based on $1,000 per FTE – based on the FTEs reported on company’s most recently filed WR-30 with the New Jersey Department of Labor and Workforce Development (DOL). Implied FTE calculations will be rounded to the nearest FTE (e.g., 2.24 FTEs would be counted as 2 FTEs for the program, whereas 2.50 or 2.75 FTEs would be counted as 3 FTEs). While the calculation of FTEs is based on weeks worked and wages as reported on the Company’s 4th Quarter 2019 WR-30 filing, in no event will a company receive grant funding based on a number of FTEs that exceeds the number of employees employed by the company. Because WR-30 filings are based on Employer Identification Numbers (EINs), SMEs with more than one EIN will be able to submit one application per EIN. SMEs that may have multiple locations but only one EIN can only apply once for a maximum of $5,000.
 
Funding Disbursement
 
Of the $5 million total NJEDA funding commitment, $3 million of program funds will be set aside for SMEs with five or fewer FTEs; however, these funds may be released back to a general pool at the discretion of the Chief Executive Officer if demand from SMEs with five or fewer FTEs has decreased significantly and demand from SMEs over five employees remains high. As the demand for the grant funding may exceed the total available funding, funding will be considered on a first-come, first-served basis based upon the date and time which the NJEDA receives a complete application. NJEDA will review applications in the order in which they are received.
 
Eligible Applicants
 
Each eligible SME must have between one and 10 FTEs as reported on their New Jersey 4th Quarter 2019 WR-30 filing with the New Jersey Department of Labor and Workforce Development. Non-employee companies, holding companies, companies that utilize 1099 employees (although these companies’ FTEs may be eligible), and larger firms are not eligible for this round of grant funding.
 
The eligible SME 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.). No home-based businesses are eligible for this round of grant funding.
 
The eligible SME must operate within the following industries as defined by the SME’s two-digit North American Industry Classification (“NAICS”) code: Retail; Accommodation & food services; Arts, entertainment & recreation; and Other services (restricted to businesses with 3-digit NAICS of 811 and 812). Non-profits entities with the following designations will also be permitted to receive grant funding: 501(c)(3), 501(c)(4), and 501(c)(7).
 
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.
 
The CEO/equivalent officer of the eligible SME 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 (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 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); and

 

  • 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).

 
In addition, an eligible SME must show evidence, at the time of application, that the SME is registered to do business in the State of New Jersey and is in good standing with the New Jersey Department of Labor and Workforce Development. In conjunction with Division of Taxation/Department of Treasury authority under the tax clearance certificate program established pursuant to P.L. 2007, c.101, the NJEDA will require a certification from the applicant that it does not owe any taxes; the grant will be subject to repayment if the certification is not correct.
 
Finally, eligible SMEs can submit one application per Employer Identification Number, i.e., SMEs with multiple Employer Identification Numbers (EINs) can submit one application per EIN; and, businesses with multiple locations but only one EIN will be limited to one application (under the sole EIN).
 
Application Process
 
Online applications will be accepted on a first-come, first-served basis, based upon the date and time which the Authority receives a completed application submission.
 
Fees
           
Due to financial hardship, no fees will be collected by the Authority for this program.
 
Additional Information
 
Additional information on the Small Business Emergency Assistance Grant Program may be found at https://faq.business.nj.gov/en/collections/2198378-information-for-nj-businesses-on-the-coronavirus-outbreak.

First of Several Programs Designed to Support Businesses Facing COVID-Related Economic Challenges

TRENTON, N.J. (March 31, 2020) – The New Jersey Economic Development Authority (NJEDA) will launch the application for its Small Business Emergency Assistance Grant Program on Friday, April 3, 2020 at 9:00 am. A link to the grant program application will be posted on the State’s COVID-19 Business Information Hub. The grant program is part of a package of initiatives announced last week to support businesses and workers facing economic hardship due to the outbreak of the novel coronavirus COVID-19.

“The launch of the grant program application marks a critical step in the State’s support of the small and mid-sized businesses that are feeling the impact of the novel coronavirus outbreak,” said NJEDA Chief Executive Officer Tim Sullivan. “The livelihood of business owners and their employees hinges on how successfully businesses can withstand this ongoing challenge. Under Governor Phil Murphy’s leadership, the State is committed to advancing resources that will help businesses recover.”

The NJEDA’s COVID-19 initiatives focus on businesses that have been hit hardest 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 suite of compatible offerings that address these businesses’ varied needs and include mechanisms to provide funding and assistance as quickly as possible.

The NJEDA developed these relief programs using the results of an online survey of small and mid-sized businesses conducted over March 20 and 21. The survey, which was conducted in both English and Spanish, received more than 2,000 responses. Key findings that informed the NJEDA’s new programs include:

  • COVID-19 has had a significant impact on New Jersey’s business community, with 73 percent of organizations surveyed reporting a significant loss of revenue and/or contract commitments. The accommodation & food services and arts & entertainment sectors have been hit particularly hard.
  • Many businesses anticipate needing to lay off workers if support is not available, with 52 percent of respondents suggesting temporary lay-offs may be necessary if they do not receive support within the next three months.
  • Businesses need financial support, but are not requesting large sums. 96 percent of respondents predicted they would need financial assistance within the next three months, with the average amount of funding needed falling between $50,000 and $75,000.

Applications for other NJEDA COVID-19 programs, including no/low interest loans, entrepreneurship support, and technical assistance for those applying for U.S. Small Business Administration loans will be available in the coming weeks. Businesses and nonprofits can find eligibility requirements for all programs on the COVID-19 Business Information Hub or use the Eligibility Wizard to identify which emergency assistance programs they may want to consider for their business’s specific needs. Comprehensive information about New Jersey’s response to the novel coronavirus outbreak is available here: https://covid19.nj.gov/.

Eligibility Guidelines for Small Business Emergency Assistance Grant Program
Businesses applying for the Small Business Emergency Assistance Grant Program must provide:

  1. A contact who is authorized to speak on behalf of the company.
  2. Basic information about the company:
    1. Registered legal name and “Doing Business As” name (available here: https://www.njportal.com/DOR/BusinessNameSearch/Search/BusinessName;
    2. Federal Employer Identification Number (EIN);
    3. Year your company was established;
    4. Full-time employees as of December 31, 2019 and Part-Time Employees as of December 31, 2019.
  3. Industry as defined by your NAICS code (available here: https://www.naics.com/search/).
  4. Answers to the State’s basic debarment questions (See .pdf of application here: https://cv.business.nj.gov).
  5. Certification that the business:
    1. Is not a home-based business;
    2. Is not a prohibited business;
    3. Has been impacted by the COVID-19 outbreak;
    4. Has a material financial need that cannot be overcome without the grant funds;
    5. Will make a best effort not to lay off any additional employees and re-hire any whom have already been laid off;
    6. The NJEDA may check your entries against other State sources of data.

NJEDA has developed an online Grant Award Size Estimate Calculator to help eligible businesses understand what their potential grant size might be.

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. (March 30, 2020) – The New Jersey Economic Development Authority (NJEDA) today announced that it is partnering with four organizations to offer support services to businesses seeking federal financial assistance through Small Business Administration (SBA) programs. This technical assistance is the latest in a series of steps New Jersey is taking to help small businesses impacted by the COVID-19 outbreak.

These organizations will help small business owners file their applications through the SBA to receive working capital loans to help them survive this crisis. Additional information about SBA program is available online at http://disasterloan.sba.gov/.

“New Jersey is working with public and private sector partners to ensure that small businesses, including those in historically underserved communities, have access to the resources they need to continue paying their bills and their workers during these unprecedented times,” said NJEDA Chief Executive Officer Tim Sullivan. “We understand that there are numerous programs out there and it can be difficult to navigate through them. Through this technical assistance program, and other initiatives we are standing up, our goal is to connect business owners and entrepreneurs with the funding sources that best suit their individual needs.”

 The following organizations have been selected to provide application assistance to businesses:

This assistance includes, but is not limited to, preparing financial information, packaging application documentation, and completing and submitting the on-line or paper-based application. Compensation for these organizations will be based on completed and submitted SBA applications.

“The AACCNJ is devoted to helping its constituents through the economic hardships resulting from the COVID-19 outbreak,” said AACCNJ President, Founder, and CEO John E. Harmon, Sr., IOM. “To the small business owners and employers throughout the state, know that we will leverage our partnerships and expertise to guide you through the SBA application process. We are here to help.”

“The economic impact that the COVID-19 outbreak has had on small businesses is staggering and the New Jersey State Veterans Chamber of Commerce stands ready to assist business owners, regardless of veteran status, as they seek to overcome the challenges that arise in the coming days, weeks, and months,” Jeff Cantor, Colonel, US Army (Ret.); Founder of the NJ State Veterans Chamber of Commerce.

“Entrepreneurs and small businesses play such a critical role in transforming our communities through the jobs and other opportunities they provide,” said Rising Tide Capital Co-Founder and CEO Alfa Demmellash. “Rising Tide Capital is here to help them navigate the process of applying for SBA loans and better position themselves to receive optimal funding.”

“New Jersey’s small businesses owners are resilient, but they are vulnerable as they confront the new reality presented by the COVID-19 outbreak,” said Carlos Medina, CEO and President, SHCCNJ. “The Chamber is prepared to work side-by-side with them to help secure the SBA funding that will be so critical to their recovery.”

Last week the NJEDA announced a suite of new programs designed to support businesses and workers facing economic hardship due to the outbreak of the novel coronavirus COVID-19. Earlier this month the State launched an online portal dedicated to answering business owners’ questions related to the impact of the COVID-19 outbreak on businesses. The portal 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.

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.

TRENTON, N.J. (March 26, 2020) – The New Jersey Economic Development Authority (NJEDA) Board today approved a suite of new programs designed to support businesses and workers facing economic hardship due to the outbreak of the novel coronavirus COVID-19.
 
The package of initiatives 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.
 
More information about the programs is available here: https://cv.business.nj.gov.
 
“The outbreak of the novel coronavirus in New Jersey has sent us into uncharted territory, and the economic impacts will be significant and far-reaching, especially on Main Street. The scope and scale of this new challenge requires immediate action to support New Jersey workers and businesses,” said Governor Phil Murphy. “The new NJEDA programs announced today are a critical step that will mitigate the economic impacts of this unprecedented challenge and help workers and businesses to weather the storm and come out stronger when things return to normal.”
 
Development of the grant program, support for CDFIs, and flexibility for current NJEDA borrowers was enabled by the legislature through A3845. Primary sponsors of the legislation include Assemblymembers Roy Freiman, Louis D. Greenwald, Ronald S. Dancer, and Senators Nilsa Cruz-Perez, and Brian Stack.
 
The new NJEDA initiatives focus on businesses that have been hit hardest by the novel coronavirus outbreak: local small businesses, mid-size businesses that have had to close or drastically reconfigure operations, and new businesses who were just getting on their feet before the crisis hit. The programs provide a suite of compatible offerings that address these businesses’ varied needs and include mechanisms to provide funding and assistance as quickly as possible.
 
Many of the resources are designed to be scalable with the addition of federal and philanthropic resources if they become available. Philanthropic partners interested in donating to support the NJEDA’s small business grant program should reach out to donations@njeda.com.
 
“Small- and medium-sized enterprises are the heartbeat of New Jersey’s economy and it is crucial that we do what we can to provide the resources and assistance they need to withstand the outbreak of novel coronavirus,” said NJEDA Chief Executive Officer Tim Sullivan. “In coordination with our partners throughout State government, we are undertaking an unprecedented effort to support these businesses and the New Jersey residents who rely on them for their livelihoods. These are challenging times, but New Jerseyans are resilient, and together we will get through this and rebuild our economy.”
 
The suite of new initiatives includes:

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.

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.

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.

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 assistance through the U.S. Small Business Administration. The organizations contracted will be paid based on SBA application submissions supported by the technical assistance they provide.
 
Additional details on the NJEDA’s new programs, including complete eligibility requirements are available here: https://cv.business.nj.gov. 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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