COVID-19 Outbreak
New Jersey Economic Development Authority (NJEDA)
Sustain and Serve NJ
 
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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. Governor Murphy has continued to extend the Public Health Emergency since that date.
 
Subsequent containment measures were implemented, including restrictions on public gatherings and mandated closure of 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 has been and will continue to be a significant adverse impact on the state’s economy.
 
Businesses classified as “Food Services and Drinking Places” under NAICS code 722 (described in this document as “Restaurants”), have been disproportionately impacted by COVID-19, because of caps on location dining and unusual costs incurred to adapt business models for safe operations.
 
With the Public Health Emergency in place and millions of New Jerseyans abruptly staying home, restaurant revenue has plummeted or disappeared, and many restaurants have had little choice but to change – or abandon – their operating model overnight, with some having to close their doors completely and lay off or furlough all staff. Many restaurants that have changed their operating model have rapidly shifted to a takeout-only model, which resulted in a significant reduction in staff.
 
In 2019, according to the New Jersey Department of Labor and Workforce Development (NJDOL), 270,000 restaurant workers were employed in New Jersey. Since the beginning of the pandemic, as of October 31, NJDOL reports that 131,710 restaurant workers have filed Unemployment Insurance claims. In 2018, the National Restaurant Association reported there were over 19,000 restaurants in New Jersey.
 
Prior to the pandemic, the sector was growing, with NJDOL projecting the sector would expand by more than 12 percent by 2026. Now, the New Jersey Restaurant and Hospitality Association estimates as many as 30 percent of New Jersey restaurants remain at risk of permanent closure.
 
While these figures are staggering, they were likely mitigated, in part, due to several New Jersey-based initiatives that emerged in direct response to COVID-19, that share the same core function, i.e., the bulk purchase of pre-made meals from New Jersey restaurants, which were then distributed for free to target populations.
 
Specifically, these initiatives aimed to achieve two central goals: to provide urgently needed revenue to restaurants to offset direct losses due to COVID-19, particularly, restaurants that had temporarily closed, were preparing to close, and/or reduced their staff through layoffs or furloughs; and to distribute free meals purchased from local restaurants to target populations, including low-income individuals, senior citizens, health care workers, and first responders.

The Sustain and Serve NJ Program builds on prior New Jersey Economic Development Authority (NJEDA) initiatives supporting restaurants impacted by COVID-19.
 
Purpose
 
The purpose of the Sustain and Serve NJ Program is to provide urgently needed revenue to New Jersey-based restaurants to offset direct losses due to COVID-19, including restaurants that had temporarily closed, were preparing to close, and/or reduced their staff through layoffs or furloughs.
 
Under the program, up to $2 million will be utilized to make grants of at least $100,000 to certain entities to support prospective expenses for making bulk meal purchases from New Jersey-based restaurants negatively impacted by COVID-19.
 
As part of the Serve and Sustain NJ Program requirements, the grantee is prohibited from reselling any meals purchased with grant funding.
 
Eligible Uses
 
Under the Sustain and Serve NJ Program, grant funding may only be used for direct costs associated with bulk purchasing of meals that are projected to be incurred between date of grant execution and April 30, 2021, for: the restaurant’s costs of food and ingredients; labor, packaging, and facilities; and, any profit margin for the restaurant.
 
However, no other expense(s) incurred by the applicant, whether in support of the meal purchase from the restaurant or otherwise, is eligible, including, but not limited to: indirect/overhead costs incurred by the applicant (e.g., rent, insurance), transportation, distribution, marketing, communications, sales tax and gratuity.
 
Grant Amounts
 
The Sustain and Serve NJ Program offers a minimum grant amount of $100,000, with grant awards calculated based on the projected number of meals to be purchased and estimated cost (per meal), excluding sales tax and gratuity.
 
Under the Sustain and Serve NJ Program, all meal purchases will be reimbursed based on a flat rate per meal. Although there is no exclusion for entities purchasing meals from restaurants at more than $10 per meal, grant funding will be capped at $10 per meal.
 
As part of the application for grant funding, entities will request a grant amount based on the projected number of meals to be purchased and estimated cost (per meal), excluding sales tax and gratuity. All grant estimates must be based on a flat rate per meal, subject to the cap of $10 per meal. For any grant that is awarded, disbursement of the total grant amount will be made incrementally from NJEDA to the grantee as eligible expenses are incurred and disbursement is requested by the grantee. These disbursement requests must document that the expenses actually incurred are consistent with eligible uses of grant funding (i.e., the quantity of meals purchased, the cost per meal, and the restaurant from which the meals were purchased).
 
Once the NJEDA receives all applications, if the total amount of grant funding requested among all eligible applications exceeds the $2 million available for the Program, NJEDA will prorate grant awards based upon the amount determined for each eligible applicant, reducing all grant awards to reflect an eligible applicant’s share of the eligible pool.
 
Eligible Applicants
 
Restaurants may not directly apply for this grant. Restaurants interested in the program are recommended to contact an entity with an established bulk meal purchasing and distribution program to discuss potential participation. Restaurants may also opt to have their business publicly listed on the Sustain and Serve NJ page of the New Jersey COVID-19 Business Hub expressing interest in being a participating restaurant that Sustain and Serve NJ applicants can reach out to for bulk meal purchases. To list your restaurant, please fill out this form. Potential grant applicants may choose to refer to this registry and contact restaurants about participating in the Sustain and Serve NJ program.
 
The Sustain and Serve NJ Program is limited to public or private entities, including 501(c) non-profit organizations. To be eligible, applicants shall provide the following documentation:

1. NJ Business Registration Certificate which may be obtained at  https://www.state.nj.us/treasury/revenue/gettingregistered.shtml

2. Tax Clearance Certification from the Division of Taxation, in the Department of the Treasury which may be obtained at https://www.state.nj.us/treasury/taxation/busasst.shtml  

3. Invoices and receipts demonstrating purchases of 3,000 or more meals made by the entity from any New Jersey-based restaurant(s) totaling at least $50,000, purchased between March 9, 2020 and December 16, 2020.  

In addition, eligible applicants shall be in good standing with NJDOL, with all decisions of good standing at the discretion of the Commissioner of NJDOL.
 
As noted above, eligible applicants must have a demonstrated history of making bulk meal purchases from New Jersey-based restaurants during the current public health emergency totaling at least 3,000 meals valued at least $50,000 between March 9, 2020 and December 16, 2020.
 
As part of the grant application, applicants must list the restaurants that they will be making bulk meal purchases from as part of Sustain and Serve NJ. In order to receive reimbursement for meal purchases through Sustain and Serve NJ, grantees may only purchase meals from restaurants that meet the following requirements:
 

  • Classified as “Food Services and Drinking Places” under NAICS code 722;
  • 50 or less full-time equivalent employees at time of application, based on the company’s most recently filed WR-30 with DOL;
  • Physical commercial location in the State of New Jersey;
  • NJ Business Registration Certificate which may be obtained at  https://www.state.nj.us/treasury/revenue/gettingregistered.shtml
  • Be in good standing with the New Jersey Division of Taxation, with all decisions of good standing at the discretion of the Commissioner of the DOL
  • Be in good standing with the DOL, with all decisions of good standing at the discretion of the Commissioner of the DOL;
  • If regulated by the Division of Alcoholic Beverage Control (ABC), in the Department of Law and Public Safety, be in good standing with ABC, with all decisions of good standing at the discretion of the ABC;
  • Current and valid certification from municipal and/or county government inspection that the restaurant has received a rating of Satisfactory as per New Jersey Retail Food Establishment Rating system; and
  • Attestation that the restaurant was in operation on February 15, 2020, and has been negatively impacted by the COVID-19 declared state of emergency on March 9, 2020 (e.g., was temporarily shut down, was forced to reduce hours, has had a 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).

 
To demonstrate eligibility, restaurants will be required to submit to NJEDA:

1. Form attesting that the restaurant was in operation on February 15, 2020, and has been negatively impacted by the COVID-19 declared state of emergency on March 9, 2020. After the applicant submits their application, this form will be sent by NJEDA directly to listed restaurants.  

2. NJ Business Registration Certificate which may be obtained at  https://www.state.nj.us/treasury/revenue/gettingregistered.shtml; and  

3. Current and valid certification from municipal and/or county government inspection that the restaurant has received a rating of Satisfactory as per New Jersey Retail Food Establishment Rating system.  

Finally, businesses prohibited from eligibility include, but are not limited to: gambling or gaming activities; 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.
 
Funding Disbursement
 
For each grant award, the total amount will be disbursed incrementally as eligible projected expenses are incurred and disbursement is requested from the NJEDA by the grantee. The disbursement requests must be evidenced by documentation supporting that the expenses were actually incurred and consistent with eligible uses of grant funding (i.e., quantity of meals purchased, cost per meal, and restaurant from which the meals were purchased).
 
During the term of the grant, the grantee may request a change or addition to participating restaurant(s), which must be submitted in writing, from which they may purchase meals and receive reimbursement through Sustain and Serve NJ. Requests for changes or additions to restaurants will be reviewed by NJEDA.
 
Application Process
 
Online applications will be accepted from December 16, 2020 through January 8, 2021, and all applications will be reviewed following the closure of the application period.
 
Applications for Sustain and Serve NJ are completed in three parts: 

1. Applicants are first required to submit an application that includes listing proposed restaurants for meal purchases;

2. Listed restaurants will then receive a short form directly from NJEDA they must complete if they wish to be eligible for meal purchases through Sustain and Serve NJ; and

3. Applicants are sent the restaurant submission to review and approve before it is sent to NJEDA. Approvals must be completed by the application deadline for consideration for meal purchase reimbursement through Sustain and Serve NJ.  
 
Applicants are responsible for ensuring restaurants have submitted materials by the application deadline. Applicants should allow sufficient time for submission of both their and listed restaurants’ materials. 
 
Fees
           
Due to financial hardship of the ultimate beneficiaries, NJEDA will collect no fees from the applicant for this program.
 
Additional Information
 
Additional information on the Sustain and Serve NJ Program may be found at the COVID-19 Business Information Hub: https://business.nj.gov/covid/is-my-business-eligible-for-the-sustain-and-serve-program?locale=en.
 

Brote de COVID-19
Autoridad para el desarrollo económico de New Jersey (NJEDA)
Sustain and Serve NJ
 
Información general
 
El 9 de marzo de 2020, el Gobernador Phil Murphy emitió la orden ejecutiva 103 en la que declaraba un Estado de emergencia y una Emergencia de salud pública a fin de incrementar nuestros esfuerzos para contener la propagación de la COVID-19. El Gobernador Murphy siguió extendiendo la Emergencia de salud pública desde esa fecha.
 
Se implementaron medidas de contención posteriores, como la restricción de reuniones públicas y el cierre obligatorio de negocios no esenciales. Si bien estas medidas son coherentes con medidas similares que se tomaron a nivel nacional y que se espera que limiten la exposición pública a la COVID-19, hubo y habrá un impacto adverso en la economía del estado.
 
Las empresas clasificadas como "Servicios de alimentos y bebidas" conforme al código 722 de NAICS (descritas en este documento como "Restaurantes"), se han visto desproporcionadamente afectadas por la COVID-19 debido a las restricciones en la capacidad y a los costos inusuales incurridos para adaptar sus modelos comerciales para operar de forma segura.
 
Con la emergencia de salud pública vigente y millones de habitantes de New Jersey que abruptamente deben quedarse en casa, las ganancias de los restaurantes se han desplomado o desaparecido, y muchos han tenido muy pocas opciones y ningún cambio, además de los que tuvieron que cerrar sus puertas completamente y despedir o dar licencia a todo su personal. Muchos restaurantes que debieron modificar su modelo operativo cambiaron rápidamente a un modelo de retiro de alimentos únicamente, lo que generó una reducción importante en la cantidad de personal.
 
En 2019, según el Departamento de Trabajo y Desarrollo Laboral de New Jersey (NJDOL), en New Jersey había 270,000 trabajadores de restaurantes. Desde el comienzo de la pandemia hasta el 31 de octubre, el NJDOL informa que 131,710 trabajadores de restaurantes presentaron reclamos de seguro de desempleo. En 2018, La Asociación nacional de restaurantes informó que había más de 19,000 restaurantes en New Jersey.
 
Antes de la pandemia, el sector estaba creciendo, y el NJDOL proyectaba una expansión del sector de más del 12% para el 2026. Hoy, la Asociación de restaurantes y hospitalidad de New Jersey estima que un 30% de los restaurantes de New Jersey corren riesgo de cierre permanente.
 
Si bien estas cifras son alarmantes, probablemente se hayan mitigado, en parte, gracias a varias iniciativas de New Jersey que surgieron como respuesta directa a la COVID-19 y que comparten el mismo objetivo principal, es decir, la compra a granel de comidas preparadas a restaurantes de New Jersey que luego se distribuyeron gratis a las poblaciones objetivo.
 
Específicamente, estas iniciativas apuntaban a dos objetivos principales: proporcionar a los restaurantes los ingresos necesarios de forma urgente para compensar las pérdidas directas debido a la COVID-19, especialmente los restaurantes que cerraron temporalmente, aquellos que se estaban preparando para cerrar y/o que redujeron su personal mediante despidos o licencias, y para distribuir de forma gratuita comidas compradas a restaurantes locales a las poblaciones identificadas, que incluyen personas de bajos recursos, adultos mayores, trabajadores de la salud y socorristas.
El programa Sustain and Serve NJ se basa en iniciativas previas de la Autoridad para el desarrollo económico de New Jersey (NJEDA) que apoyan a los restaurantes afectados por la COVID-19.
 
Objetivo
 
El objetivo del programa Sustain and Serve NJ es proporcionar a los restaurantes de New Jersey los ingresos que necesitan de forma urgente para compensar las pérdidas directas debido a la COVID-19, incluidos los restaurantes que cerraron temporalmente, aquellos que se estaban preparando para cerrar y/o que redujeron su personal mediante despidos o licencias.
 
El programa asignará hasta $2 millones para entregar subsidios de al menos $100,000 a ciertas entidades con el fin de sustentar gastos previstos para la compra a granel de comidas a restaurantes de New Jersey que se vieron negativamente afectados por la COVID-19.
 
Como parte de los requisitos del programa Sustain and Serve NJ, se prohíbe que el beneficiario del subsidio revenda las comidas compradas con fondos de subsidio.
 
Usos elegibles
 
Conforme al programa Sustain and Serve NJ, los fondos de subsidio solo pueden usarse para gastos directos asociados con la compra a granel de comidas en los que se prevea incurrir entre la fecha de ejecución del subsidio y el 30 de abril de 2021 por: los costos de alimentos e ingredientes del restaurante; mano de obra, empaque e instalaciones; y cualquier margen de ganancia para el restaurante.
 
Sin embargo, no es elegible ningún otro gasto en el que incurra el solicitante, ya sea en favor de la compra de comidas al restaurante ni de ninguna otra forma, incluidos, entre otros: costos indirectos/generales incurridos por el solicitante (p. ej., alquiler, seguro), transporte, distribución, comercialización, comunicaciones, impuestos a las ventas y propinas.
 
Montos del subsidio
 
El programa Sustain and Serve NJ ofrece un monto de subsidio mínimo de $100,000, que otorga beneficios calculados en función de la cantidad prevista de comidas que se comprarán y el costo estimado (por comida), sin incluir impuestos a las ventas ni propinas.
 
En el programa Sustain and Serve NJ, todas las compras de comidas se reembolsarán según un costo fijo por comida. Si bien no se excluyen las entidades que compren comidas a restaurantes por un precio superior a los $10 por comida, los fondos de subsidio tendrán un límite de $10 por comida.
 
Como parte de la solicitud de fondos de subsidio, las entidades solicitarán un monto de subsidio en función de la cantidad prevista de comidas que se comprarán y el costo estimado (por comida), sin incluir impuestos a las ventas ni propinas. Todos los cálculos de subsidios se deben basar en una tarifa fija por comida, sujeta al límite de $10 por comida. Para cualquier subsidio que se otorgue, la NJEDA pagará al beneficiario el monto de subsidio total de forma incremental a medida que el beneficiario incurra en gastos elegibles y solicite el pago. Esas solicitudes de pago deben documentar que los gatos incurridos coinciden con los usos elegibles de los fondos de subsidio (es decir, la calidad de las comidas compradas, el costo por comida y el restaurante al que se compran las comidas).
 
Una vez que la NJEDA recibe todas las solicitudes, si el monto total de los fondos de subsidio solicitados entre todos los solicitantes elegibles supera los $2 millones disponibles para el programa, la NJEDA prorrateará los fondos en función del monto que se haya determinado para cada solicitante elegible, y reducirá los montos otorgados para que reflejen la porción del monto total elegible que le corresponde a un solicitante elegible.
 
Solicitantes elegibles
 
Los restaurantes no podrán presentar solicitudes directas para este subsidio. Se recomienda a los restaurantes interesados en el programa que se comuniquen con una entidad que ofrezca un programa establecido de compra y distribución de comidas a granel para consultar sobre una posible participación. Los restaurantes pueden optar por que el negocio se incluya en una lista pública en la página de Sustain and Serve NJ del Nodo comercial de New Jersey para la COVID-19, expresando interés en ser un restaurante participante con el que los solicitantes de Sustain and Serve NJ puedan comunicarse para comprar comidas a granel. Para incluir su restaurante en la lista, complete este formulario. Los posibles solicitantes de subsidios podrán consultar este registro y comunicarse con los restaurantes acerca de la participación en el programa Sustain and Serve NJ.
 
El programa Sustain and Serve NJ está limitado a entidades públicas o privadas, incluidas organizaciones sin fines de lucro 501(c). Para ser elegibles, los solicitantes deben proporcionar la siguiente documentación:
 

  1. Certificado de registro comercial de NJ, que se puede obtener en https://www.state.nj.us/treasury/revenue/gettingregistered.shtml

 

  1. Certificado de pago de impuestos de la División fiscal del Departamento del Tesoro, que se puede obtener en https://www.state.nj.us/treasury/taxation/busasst.shtml

 

  1. Facturas y recibos que demuestren compras de 3,000 o más comidas realizadas por la entidad a cualquier restaurante de New Jersey por un total de al menos $50,000 y que se hayan realizado entre el 9 de marzo de 2020 y el 16 de diciembre de 2020.

 
Además, los solicitantes elegibles deben estar debidamente acreditados con el NJDOL, y todas las decisiones sobre elegibilidad son a discreción del Comisionado del NJDOL.
 
Como se indicó anteriormente, los solicitantes elegibles deben tener antecedentes demostrables de compras de comidas a granel a restaurantes de New Jersey durante la emergencia de salud pública actual por un total de al menos 3,000 comidas valuadas en $50,000 como mínimo, entre el 9 de marzo de 2020 y el 16 de diciembre de 2020.
 
Como parte de la solicitud de subsidios, los solicitantes deben indicar los restaurantes a los que les comprarán comidas a granel a través de Sustain and Serve NJ. Para poder recibir reembolso de las compras de comidas a través de Sustain and Serve NJ, los beneficiarios solo podrán comprar comidas a restaurantes que cumplan con los siguientes requisitos:
 

  • Clasificados como "Servicios de alimentos y bebidas" según el código NAICS 722;
  • 50 empleados equivalentes a tiempo completo, o menos, al momento de la solicitud según el último formulario WR-30 presentado por la empresa ante el DOL;
  • Ubicación comercial física en el Estado de New Jersey;
  • Certificado de registro comercial de NJ, que se puede obtener en https://www.state.nj.us/treasury/revenue/gettingregistered.shtml
  • Cumplir con todos los requisitos de la División fiscal de New Jersey, con todas las decisiones sobre cumplimiento de requisitos a discreción del Comisionado del DOL.
  • Cumplir con todos los requisitos del DOL, con todas las decisiones sobre cumplimiento de requisitos a discreción del Comisionado del DOL.
  • Si se rigen por las regulaciones de la División de control de bebidas alcohólicas (ABC) del Departamento Legal y de Seguridad Pública, cumplir con todos los requisitos de ABC, con todas las decisiones sobre cumplimiento de requisitos a discreción de ABC.
  • Certificación actual y válida de una inspección del gobierno municipal o del condado que indique que el restaurante recibió una calificación satisfactoria conforme al Sistema de calificación de establecimientos de venta minorista de alimentos de New Jersey; y
  • Certificación de que restaurante estaba operativo el 15 de febrero de 2020 y que fue negativamente afectado por el estado de emergencia declarado por la COVID-19 el 9 de marzo de 2020 (p. ej., cerró temporalmente, tuvo que reducir horas, sufrió una disminución en las ganancias, fue afectado materialmente por empleados que no pueden trabajar debido al brote, o tiene una cadena de suministro que se ha visto obstaculizada y, por lo tanto, se redujo la producción a nivel de la firma).

 
Para demostrar la elegibilidad, los restaurantes deben presentar lo siguiente ante la NJEDA:

  1. Formulario que certifique que restaurante estaba operativo el 15 de febrero de 2020 y que fue negativamente afectado por el estado de emergencia declarado por la COVID-19 el 9 de marzo de 2020. Después de que los solicitantes presentan la solicitud, la NJEDA enviará directamente el formulario a los restaurantes que se hayan indicado.

 

  1. Certificado de registro comercial de NJ, que se puede obtener en https://www.state.nj.us/treasury/revenue/gettingregistered.shtml; and

 

  1. Certificación actual y válida de una inspección del gobierno municipal o del condado que indique que el restaurante recibió una calificación satisfactoria conforme al Sistema de calificación de establecimientos de venta minorista de alimentos de New Jersey.

 
Por último, los negocios no elegibles incluyen, entre otros: juegos de azar o actividades de juego; realización o provisión de actividades, servicios, productos o materiales (pornográficos, morbosos, indecentes, obscenos o con mala reputación) para "adultos" (que incluyen representaciones de desnudez o semidesnudez, o la venta de objetos o dispositivos sexuales); cualquier subasta, quiebra, despido o venta por "pérdida de arrendamiento", "cese permanente de actividad" o cualquier motivo similar; ventas de comerciantes transitorios, ventas de árboles navideños u otras ventas de exterior; cualquier actividad que constituya una molestia y cualquier fin ilegal.
 
Pago de fondos
 
Para cada subsidio otorgado, el monto total se pagará de forma incremental a medida que el beneficiario incurra en los gastos elegibles proyectados y solicite el pago a la NJEDA. Las solicitudes de pago deben documentar que los gatos incurridos coinciden con los usos elegibles de los fondos de subsidio (es decir, la calidad de las comidas compradas, el costo por comida y el restaurante al que se compran las comidas).
 
Durante el plazo del subsidio, el beneficiario puede solicitar por escrito la modificación o adición de restaurantes participantes a los que podría comprar comidas y recibir reembolso a través de Sustain and Serve NJ. La NJEDA revisará las solicitudes de modificación o adición de restaurantes.
 
Procedimiento de solicitud
 
Se aceptarán solicitudes en línea desde el 16 de diciembre de 2020 hasta el 8 de enero de 2021, y todas se revisarán al cierre del período de presentación de solicitudes.
 
Las solicitudes para Sustain and Serve NJ se completan en tres partes:  
1)      Los solicitantes primero deben presentar una solicitud que incluya la lista de restaurantes para la compra de comidas;
2)      Los restaurantes enumerados luego recibirán un formulario breve directamente de la NJEDA que deberán completar si quieren ser elegibles para la compra de comidas a través de Sustain and Serve NJ, y
3)   Los solicitantes recibirán la solicitud que presentó el restaurante para que la revisen y la aprueben antes de enviarla a la NJEDA. Las aprobaciones deben completarse antes de que se cumpla el plazo para que puedan considerarse para el reembolso de compras de comida a través de Sustain and Serve NJ.
 
Los solicitantes son responsables de garantizar que los restaurantes hayan presentado los materiales correspondientes antes del plazo para la presentación de solicitudes. Los solicitantes deben disponer de tiempo suficiente para presentar los materiales propios y los materiales de los restaurantes indicados.  
 
Tarifas
              
Debido a las dificultades financieras de los beneficiarios, la NJEDA no cobrará tarifas a los solicitantes de este programa.
 
Información adicional
 
Puede encontrar información adicional sobre el programa Sustain and Serve NJ en el sitio web del Nodo de información comercial durante la COVID-19: https://business.nj.gov/covid/is-my-business-eligible-for-the-sustain-and-serve-program?locale=en.
 

Please be advised that a telephonic meeting of the New Jersey Economic Development Authority is scheduled for 10:00 AM, Tuesday, December 8, 2020.

The Members will convene to via conference call only.  Members of the public may participate in the meeting by calling in on the conference line.  Members of the public will have an opportunity to speak during the public comment segment of the meeting. The following conference number is being provided:
 
CONFERENCE NAME: NJEDA BOARD MEETING (December 8, 2020)
PARTICIPANT DIAL-IN NUMBER: 877-692-8955
PARTICIPANT ACCESS CODE: 4204420
 
Members of the public are encouraged to call in prior to the time the meeting is scheduled to begin to avoid any delays. 
 
The agenda can be found 48 hours prior to the meeting on our website: www.njeda.gov.

As we head into Small Business Saturday, the charts below help us understand COVID-19’s impact on small businesses, a sector of the New Jersey economy that has been hit especially hard by the pandemic. The good news for local small businesses is that COVID-19 presents a double-edged sword in terms of local spending. The pandemic has created challenges for small businesses, but it has also caused most NJ residents to stay close to home and enticed new residents into the state, which means a larger portion of these residents’ consumer dollars are also staying closer to home and supporting local businesses. In addition, the New Jersey Economic Development Authority (NJEDA) has created new programs to provide small businesses with much-needed financial support and technical assistance to help get them through these rough times.

Indicator 1 – Small Business Revenue

Source: Opportunity Insights Economic Tracker

This first economic indicator shows New Jersey small business revenue for all industries and revenue broken out by two specific areas of industry: retail and transportation, and leisure and hospitality. Here, small businesses are defined as businesses with annual revenue below U.S. Small Business Administration thresholds[1]. The chart depicts changes in revenue relative to where it was right before COVID-19 arrived in New Jersey to give a picture of how small business revenue has been impacted by the pandemic.

There are a few readily apparent narratives illustrated in the chart. One is that small business revenue has taken a huge hit. As of the first week of November, small business revenue was down more than 30 percent relative to January. This revenue decline actually represents a significant recovery from the depths of the economic shutdown, when revenue was down nearly 60 percent. But after recovering a good portion of lost revenue through the summer, small business revenue levels have been relatively stagnant, signaling a lack of momentum in the small business economy. The chart also shows that, as the COVID-19 new case rate has risen back to levels seen in April, small business revenue is suffering another downturn. Since late October, small business revenue has deteriorated from around -24 percent to -32 percent.

A third and clearly apparent narrative is that COVID-19 has had differential impacts on several industries. For instance, the pandemic has had an especially large impact on the leisure and hospitality industry, where revenues are down more than 50 percent, while in retail and transportation, revenue had essentially recovered to pre-COVID levels. Unfortunately, as virus cases are rising sharply, retail and transportation revenue is again declining sharply.

Indicator 2 – Cash on Hand

Source: US Census Bureau

In the context of this latest surge in virus cases, it is important to consider the breadth of small business cash levels as indication of how prepared these businesses are to weather another demand decline. This chart shows the percentage of small businesses that report having cash levels that can cover one month or more of expenses. The data is pulled from the Small Business Pulse, which is a survey that measures the effect of changing business conditions during the pandemic on small businesses.

As the chart shows, coming into May, a little more than 30 percent of small businesses in New Jersey reported having cash levels to cover a month or more of expenses. Then, as the Paycheck Protection Program (PPP) provided much needed cash to small businesses, cash levels improved markedly. According to the survey, approximately 70 percent of New Jersey small businesses received PPP loans. At its high point, almost 55 percent of small businesses reported having cash levels to cover one month or more of expenses. But as PPP becomes more of a distant memory, cash levels have deteriorated. In the latest weekly survey, only 43 percent of small businesses reported having one month or more of cash in reserve. And as COVID cases are on the rise and activity slows, we’re almost certain to see cash levels deteriorate further. This will create a pressing need for additional funding support for small businesses. At the time of this publication, the NJEDA in 2020 had approved over $150 million in grants to New Jersey’s small businesses, of which over $85 million were approved since the beginning of November. This recent surge in funds will help provide much needed resources to the small business community.

Indicator 3 – Small Business Ownership by Race, Ethnicity, and Sex

Source: US Census Bureau

Small Businesses provide significant economic opportunities to more economically marginalized groups. These businesses are more likely to be minority- or woman-owned than larger businesses, which means the drop in small business activity has had an outsized economic impact on minorities and women. This is especially true in the accommodations and food services industries, where significantly higher shares of businesses are minority- and woman-owned (approximately 37 percent and 33 percent respectively). Unfortunately, accommodations and food services has been amongst the hardest hit industries, with revenue down more than 50 percent from pre-pandemic levels. This has an outsize impact on historically marginalized groups and creates an even more pressing need for economic assistance that specifically supports these communities. Once again, the NJEDA has been working to help these communities. Of the over $150 million in grants approved this year, approximately 24 percent has been to minority-owned businesses, 26 percent to women-owned businesses, and 30 percent to small businesses in opportunity zones. Note these are non-mutually exclusive shares that have a significant amount of overlap.

[1] https://www.sba.gov/sites/default/files/2019-08/SBA%20Table%20of%20Size%20Standards_Effective%20Aug%2019%2C%202019_Rev.pdf

A meeting of the Commission of Science, Innovation and Technology (CSIT) Board has been scheduled for Friday, November 20, 2020 at 10:00 am

A copy of the proposed agenda can be found at www.njeda.gov/csit

+1 551-220-2262

Conference ID: 731 111 081#

Join Microsoft Teams Meeting

 

  By Richard Kasmin, NJEDA Chief Economist

Our biweekly look at a few key economic indicators and what they can tell us about the state of New Jersey’s economy.

Indicator 1 – Weekly Initial Claims for Unemployment Insurance

Source: New Jersey Department of Labor

If a macroeconomist is stranded on a desert island and can only have a few economic indicators with which to understand the state of the economy, weekly filings of initial claims for unemployment insurance is a clear choice. Why? Well, for starters, these filings are generally the result of people recently losing their employment and seeking unemployment insurance coverage. Knowing something about the rate at which people are losing jobs is key to understanding how an economy is performing. In general, layoffs and new job creation as businesses come and go and expand and contract are natural components of a healthy economy. Analyzing shifts in the level of initial claims can provide key information about the state of the economy.

In that vein, the chart above shows weekly initial claims for unemployment insurance in 2020 (the dark blue line), and the average for 2018 and 2019 (the green line). During the worst of this year’s economic freeze, initial claims surged to around 20 times the level seen in recent years. But as the economy reopened, initial claims moderated considerably, settling down to around double previous years’ levels. That was relatively good news as it showed labor demand was rebounding; firms were less likely to lay off workers as they became more confident in the pace of economic recovery.

But, in recent months, something concerning has occurred. Instead of the relative level of initial claims continuing to recede as the economy picked up momentum, claims actually increased to around three times the level seen at this time in prior years. That suggests layoffs are rising again, which could be a sign of rising economic challenges in the near future.

Indicator 2 – Employment by Wage Cohorts

Source: Opportunity Insights Economic Tracker

It goes without saying that COVID-19 has not impacted all segments of the economy in equal measure. Economic shocks never do, but the fallout from this shock seems especially lopsided, with those households that can least afford it taking the brunt of the shock.

As the above chart shows, relatively lower-wage jobs have taken the largest economic hit and have struggled to recover. Lower-wage jobs are more likely to be in face-to-face industries, and we know this is where COVID-19 has had an outsized impact. Low-wage employment is still around 20 percent below where it was before the pandemic. Higher-wage employment certainly took a considerable hit but has recovered much more as a considerable share of these jobs can be done from home.

Indicator 3 – High Propensity Business Applications


Source: US Census Bureau

One of the more curious things to happen in New Jersey, and the country for that matter, is the surge in applications for business tax identification numbers. These applications precede the creation of new businesses. In the case of so-called high propensity business applications depicted in the chart above, these are applications to create businesses having a high likelihood of turning into businesses with payroll. Thus, these applications signal the creation of new employer businesses. As the chart shows, cumulative applications in 2020 are around eight percent higher than they were at this time of year in 2018 or 2019. Given all the negative impacts COVID-19 is having on the economy, this is a bright spot as it suggests a surge in entrepreneurial spirit despite (or because of?) the virus.

Some analysts wonder if the surge in applications is merely reflective of a backlog of applications being processed. Others wonder if the destruction of so many small businesses and jobs is leading to creation of new businesses by the owners of now defunct businesses creating sole proprietorships. This could negate the expectation that these new businesses will create jobs. In other words, this jump in applications might not reflect a surge in job-creating new businesses but a jump in sole proprietorship creation reflective of all other income generating options being exhausted.

The jury is out for now, but in the short term this could be a positive sign that creative destruction and entrepreneurial spirit is alive and well in New Jersey and the US.

Please be advised that a telephonic meeting of the New Jersey Economic Development Authority is scheduled for 10:00 AM, Friday, November 13, 2020.

The Members will convene to via conference call only.  Members of the public may participate in the meeting by calling in on the conference line.  Members of the public will have an opportunity to speak during the public comment segment of the meeting. The following conference number is being provided:
 
CONFERENCE NAME: NJEDA BOARD MEETING (November 13, 2020)
PARTICIPANT DIAL-IN NUMBER: 877-692-8955
PARTICIPANT ACCESS CODE: 4204420
 
Members of the public are encouraged to call in prior to the time the meeting is scheduled to begin to avoid any delays. 
 
The agenda can be found 48 hours prior to the meeting on our website: www.njeda.gov.

New Jersey Economic Development Authority (NJEDA) 
New Jersey Small and Micro Business PPE Access Program Phase 2
Notice of Funding Availability: Applications targeted to become available beginning 9:00am on Tuesday, November 10th
 
BACKGROUND ON SMALL AND MICRO BUSINESS PPE NEEDS

The NJ Small and Micro Business PPE Access Program was developed in response to consistent concerns emerging from the Governor’s Restart and Recovery Commission, the nine sector-based committees of the Governor’s Restart and Recovery Advisory Council and input from numerous small and micro businesses. Both the Commission and the Advisory Council highlighted the need for readily available, fairly priced PPE to accelerate economic recovery.  As small and micro businesses and organizations in historically underserved communities are particularly vulnerable to being crowded out of essential goods when tight market conditions occur, a key consideration of the program has been the need to ensure equitable distribution and pricing of PPE.

More than one third of all New Jersey workers are employed by organizations of 100 employees or fewer. Many of these companies do not have the reach or the resources to obtain goods outside of their normal retail buying channels, particularly in times of significant supply/demand imbalances. PPE falls squarely into the category of a good that was not essential to many of these organizations before the COVID-19 outbreak but is critical today.

PROGRAM PURPOSE

Overall Program

The NJ Small and Micro Business PPE Access Program is designed to make fairly priced PPE more easily available to all the small and micro businesses and non-profit organizations in the state, to prevent the spread of the COVID-19 and reduce their burden of sourcing for the PPEs from the competitive markets. In addition to the above the program will:
 

  1. Facilitate the State’s economic recovery by ensuring that small and micro businesses and non-profit organizations – the customers – can access affordably priced PPE and other safeguarding equipment to protect their employees as they return to work and continue to operate in a COVID-19 environment;
  2. Ensure small and micro businesses and non-profit organizations have access to the information they need to select the appropriate PPE needed for their context;
  3. Ensure that businesses in historically underserved communities are particularly able to access affordable PPE; and
  4. Support the State’s manufacturing sector by providing an offsetting subsidy for purchases of PPE manufactured or assembled at a manufacturing facility in New Jersey.

The Phase 1 Program – Selecting Designated Vendors and Sourcing PPE from NJ Companies

On August 11, 2020, NJEDA approved Phase 1 of the PPE Access Program. The focus of Phase 1 has been to identify and designate qualified vendors to launch online platforms where NJ companies can buy PPE at fair prices from reliable vendors offering a curated array of quality products all at a discount to normal market prices.  Within the Program, these vendors are called “Designated Vendors” (DVs).  Small and micro businesses will access Designated Vendors’ online platforms via a PPE Access Program website hosted on the State’s COVID19.nj.gov site (https://covid19.nj.gov/ppeaccess).  Small businesses will also be able to learn about workplace PPE best practices and use a simple tool to determine their PPE needs.

In addition, Phase 1 includes an economic development component to encourage the Designated Vendors to make wholesale purchases of PPE from NJ manufacturers and from small distributors located in traditionally underserved NJ communities.  To support this aim, the NJEDA approved the creation of a $3.5 million grant pool to be used as subsidies to bridge potential pricing gaps between NJ manufacturers and distributors and the global market.

The Phase 2 Program – Providing Purchase Subsidies to Benefit Small and Micro Businesses

Based on the response received from DVs of varying types and sizes, the program is now being expanded by launching a second Phase, aimed at providing purchase subsidies through DVs to benefit the State’s small businesses with a particular focus on those located in historically underserved communities.

As part of Phase 2, on October 14, 2020, NJEDA approved a grant pool of $20.4 million for purchase price discounts of 25% through Designated Vendors to small and micro businesses.  The subsidized discount will have a cap of $400 per organization generally and $500 for organizations located in historically underserved communities (i.e., located in one of New Jersey's 715 Opportunity Zone Eligible census tracts).  Companies eligible to benefit from these subsidies will be determined by company size (based on full-time equivalent (“FTE”) employment) and location, as described more fully below.

PROGRAM STRUCTURE AND ELIGIBILITY

Benefits through the Program

Phase 2 of the PPE Access Program has been structured to provide $20.4 million of grant funding to cover 25% of eligible small businesses or non-profit’s PPE purchases through the Designated Vendors PPE Access Program sites.  The 25% discount is capped per organization, per round of the Program, at $400 generally, and $500 for organizations in opportunity zone eligible census tracts.  This subsidized discount is in addition to the minimum 10% discount offered by each of the Designated Vendors under Phase 1 of the Program.
Discounts will be made available by the Designated Vendors to businesses and non-profits (“Subsidy-Eligible Recipients” or “SERs”) having 100 or fewer FTE employees, based on EDA confirmation of eligibility.  The program eligibility threshold is at 100 FTEs for the following reasons:
 

  • More than a third of the state’s workforce is employed by companies having 100 or fewer employees; and
  • Companies having 100 or fewer employees are far more likely to lack deep or sophisticated procurement resources; and
  • These businesses tend to have smaller balance sheets and more concentrated operations, increasing the likelihood that COVID-19 has had a greater impact on their ability to survive the pandemic and resulting public health measures that have impacted the economy.

 
A business’s FTE will be determined based on its most recent NJ Department of Labor (“DOL”) form “NJ Employer Report of Wages Paid” (WR-30) where available, or, in limited circumstances where NJ DOL data is not available, through company self-certification.

The program will be run in rounds based upon program demand and available funding.  During each round, a small business will be eligible for a coupon (or functional equivalent discount method)from a single Designated Vendor that would offset 25% of the cost of their PPE purchase through the program.  For the first round of the program, coupons/discounts will be valued at $500 for organizations located in historically underserved communities (defined as those whose registered address is fully or partially within one of the State’s 715 Opportunity Zone Eligible census tracts) and $400 for all other eligible organizations.  

Where possible, Designated Vendors will split the total value of the coupon/discount into multiple coupons/discounts of lower value to enhance flexibility of the program (i.e., allow SERs to split their PPE purchase up over multiple purchases).  The ability to offer that flexibility will be determined by the Designated Vendors’ technical capabilities and may differ by Designated Vendor.

While businesses will have the ability to purchase goods other than PPE from the Designated Vendors, all subsidies under this program will only apply to PPE offered through the Program.
 
General Program process

To simplify the administration of the grant funding for small businesses and non-profits, funds will flow from NJEDA to the Designated Vendors, who will provide the benefits to SERs in the form of a coupon/discount to reduce their payment obligations. 

The flow of application, approval and receipt of subsidies will occur as follows:

 

  • Small businesses will submit information to confirm subsidy eligibility (as described below) and will self-certify that the PPE they are purchasing with the subsidized funds (i.e., at least 25% of their order) will be: (a) for their own business’ use and (b) used prior to December 31, 2020.
  • If deemed eligible, the SER will select a single Designated Vendor from which it wishes to receive a coupon/discount.  (If deemed ineligible, the applicant may submit an appeal, as outlined below.  In the instance of an appeal, NJEDA will set aside in reserve the amount of funding in question should the appeal have merit.)
  • The coupons/discounts will be issued to the SER directly by the Designated Vendor in the appropriate amount. All discounts will expire 14 days from issuance or on November 30, 2020, whichever is earlier, in order to ensure that the maximum amount of CARES Act money is used.  To the extent possible based on NJ Treasury and CRF deadlines (as may be extended), unused coupon/discount funds will be rolled back into the program budget and reissued through new coupons/discounts.
  • Once Phase 2 of the program has been launched for two weeks, if funding is still available and if the Program demonstrates demand from small businesses for additional discount, NJEDA may launch additional program rounds. At that time, a business that has previously received a coupon/discount can re-register for an additional discount.  In such cases, the small business will need to fill out an additional eligibility assessment and NJEDA will again confirm that the business requires the additional subsidy to support a COVID-19 related PPE business need through a self-certification.
  • The SERs will click through to the DV Program Site and make their product selections.  In the checkout process, the coupon/discount will be applied, and their purchases will be reduced by 25%, up to the limit of their coupon/discount denomination.

NJEDA’s determination that a business is eligible for a coupon/discount amount will be subject to continued funding availability.

Coupon/discount reimbursement to Designated Vendors will be made within 30 days after receipt of accounting documentation. To comply with the expenditure requirements of the CARES Act and the MOU with NJ Treasury, the Designated Vendor must document the PPE purchased by each SER and must request NJEDA disbursement from NJEDA no later than December 1, 2020 (or applicable deadline based upon any updated State and Federal CARES Act disbursement requirements).

Eligibility confirmation process

Organizations seeking to qualify as SERs and to benefit from the Phase 2 subsidies will be required to confirm their eligibility on the PPE Access Program website.  While the subsidy is offered through the Designated Vendors, NJEDA will be responsible for eligibility checks to ensure privacy, timeliness and simplicity. 
Eligibility will be determined once per round per EIN (meaning that businesses that utilize one EIN for multiple locations will only be able to access the coupons/discounts once per round).
Eligibility screening will include:

  • Confirming the business is registered in the State of New Jersey
  • Confirming if the business’ primary business location is in an Opportunity Zone Eligible census tract
  • Confirming the size of company (above or below 100 FTE threshold)
    • To be verified using the most recent WR-30 filing data provided to NJEDA by the NJ Department of Labor
  • Confirming the business is in good standing with the NJ Department of Labor
  • Confirming via self-certification that the company needs discounts provided under the Program to purchase PPE that is related to the COVID-19 emergency for use by their own company before December 31, 2020.  

 
A tax clearance certificate from the New Jersey Department of Treasury’s Division of Taxation will not be required for a small business to benefit from this program.  However, tax clearance certificates continue to be required for the Designated Vendors in the Program.
 
During the eligibility check process, the SER will be required to confirm their correct email address.  SERs will be solely responsible for entering a correct email address; NJEDA will not verify or confirm the email address.
 
Appeals

Organizations will be able to appeal the Authority’s determination of Phase 2 eligibility within 5 days of notice of the determination.  Appeals will be reviewed by a NJEDA member who has not up until that point been directly involved in the eligibility determination. 

As the Authority is not involved in the actual issuance of the coupon/discount, in the use of the coupon/discount, in the sale of the PPE, the operation or functionality of the DV website, or such other actions or decisions under the DV’s sole control, any attempt to appeal from such actions will be rejected, as they are not a protest of an EDA action or decision. 

Similarly, any attempt to appeal because the SER entered and confirmed an incorrect email address will not be a valid basis for an appeal. Funds will be set aside for the maximum amount of subsidy support for any appeals that are lodged with the Authority. 

Post-eligibility audits

NJEDA will conduct audits to confirm that small business self-certifications provided during the eligibility assessment process were accurate.  In such cases where the audit reveals that a self-certification was not accurate, NJEDA may request that the funds be returned and/or may refer these organizations to the relevant State agency for further investigation.

Funding Disbursement

Disbursements (reimbursements of subsidized discounts) to Designated Vendors from the $20.4 million grant pool will be made up to 30 days after receipt of acceptable Phase 2 documentation.  Designated Vendors must submit request for NJEDA disbursement no later than November 30, 2020 to enable enough time for disbursement.
 
Additional Information

Additional information on the New Jersey Small and Micro Business PPE Access Program and this grant may be found at: https://covid19.nj.gov/ppeaccess.

 

The NJEDA understands that the application system is currently responding slowly. At this time we are working to resolve the issue. Please be aware that the Program is not oversubscribed at this point and the application is allowing people to submit.

Gracias por iniciar el proceso de preinscripción para la Fase 3 del Programa de subsidios de asistencia de emergencia para pequeñas empresas de la Autoridad para el desarrollo económico de New Jersey (NJEDA). Usted está recibiendo esta notificación porque no presentó su preinscripción.

El último día para presentar su preinscripción es MAÑANA, martes 27 de octubre de 2020 a las 5:00 p. m. Debe completar su preinscripción y presionar “submit” (enviar) antes de este plazo para poder ser elegible para solicitar un subsidio.

Firme aquí para completar su preinscripción. Si inició varias preinscripciones, tenga en cuenta que se permite una sola presentación por Número de identificación de empleador.

Seminario web de ayuda para la preinscripción:

Hay un seminario web demostrativo pregrabado disponible para proporcionar ayuda con el proceso de preinscripción; para ver este seminario web, visite:

https://www.youtube.com/watch?v=OGNu7RvOcJA&feature=youtu.be

Próximos pasos para presentar su solicitud:

Los solicitantes que hayan completado la preinscripción antes del 27 de octubre a las 5:00 p. m. deberán regresar al centro para presentar sus solicitudes según el siguiente cronograma:

•  Restaurantes (hasta 50 FTE) – 29 de octubre a las 9:00 a. m.
•  Microempresas (menos de 5 FTE) – 30 de octubre a las 9:00 a. m.
•  Todos los demás solicitantes (6-50 FTE) – 2 de noviembre a las 9:00 a. m.

Aquí encontrará una solicitud de ejemplo que lo/la ayudará a prepararse para completar una solicitud según el cronograma anterior.

Mañana, martes 27 de octubre a las 11:00 a. m., se realizará un seminario web en vivo para guiar a los solicitantes en lo que pueden esperar una vez que la solicitud esté disponible y en cómo responder las preguntas. Haga clic aquí para unirse al seminario web.  Si le solicitan contraseña, use phase3. Este seminario web se grabará y estará disponible en cv.business.nj.gov más tarde ese mismo día para aquellos que no puedan asistir.

Otras formas de unirse:

iPhone one-tap : 
    EE. UU.: +13017158592,,81803689953#  o +13126266799,,81803689953# 

O por teléfono:
    Marque (para una mejor calidad, marque un número según su ubicación actual):

        EE. UU.: +1 301 715 8592  o +1 312 626 6799  o +1 929 205 6099  o +1 253 215 8782  o +1 346 248 7799  o +1 669 900 6833 

ID del seminario web: 818 0368 9953

    Números internacionales disponibles: https://us02web.zoom.us/u/kdLk0uu5M6
 
¿Tiene otras preguntas o necesita ayuda?
Si tiene preguntas o ha tenido dificultad para completar el proceso de preinscripción, envíe un correo electrónico a CustomerCare@njeda.com o llame a la Línea de asistencia por COVID de NJEDA al 844-965-1125. Si necesita servicio de traducción, hay apoyo disponible en 10 idiomas en languagehelp@njeda.com.