TRENTON, N.J. (June 15, 2020) – The New Jersey Economic Development Authority (NJEDA) announced today that it is working with the Office of Governor Phil Murphy and labor and industry leaders to gather new and innovative perspectives on facilitating sufficient and affordable access to Personal Protective Equipment (PPE) and safeguarding materials for small businesses and non-profit organizations as they begin to reopen in aftermath of the COVID-19 outbreak.

The NJEDA issued a Request for Information (RFI) today to seek information, ideas, and solutions  on how to ensure the state’s small businesses and non-profits have economical and equitable access to the appropriate personal protective equipment and safeguarding tools that they will need to reopen and operate safely. The RFI includes a special concern that PPE be available to organizations run by and for women, minorities and people of color, veterans, and other historically disadvantaged communities.

“Preventing a major recurrence of the COVID-19 virus outbreak is our top priority as we recover from this unprecedented public health crisis,” said Governor Phil Murphy. “The health and safety of each and every member of our workforce must be protected, and that can only happen if employers can access essential goods easily, fairly, and at a reasonable cost.”

In particular, the NJEDA is seeking guidance on how to accelerate market-based solutions to meet the need for PPE, including an understanding of the support necessary from the State government, or other interested parties such as corporations or philanthropies, that could best reinforce those efforts.

In May 2020, Governor Murphy established both the Restart and Recovery Commission and Restart and Recovery Advisory Council. One of the most universal and pressing concerns these groups have identified is small businesses’ and not-for-profit organizations’ need for PPE to protect their employees as they continue to reopen and operate in a post-COVID-19 environment.

“Safely reopening the economy and protecting workers and customers must take precedence over the speed at which we do so,” said Richard Trumka, President, American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). “Jeopardizing the lives of hardworking Americans is not an option.” 

“The issue of access to PPE must be addressed head on to ensure a coordinated, transparent process for procurement and distribution of essential goods,” said Tony Coscia, Partner and Executive Committee Member, Windels Marx Lane & Mittendorf, LLP. “Seeking innovative ideas on how the State can support efficient, affordable, and equitable procurement and distribution of PPE products is a prudent and much-needed step in the process of reopening New Jersey’s economy.”

Trumka and Coscia serve as Co-Chairs of Governor Murphy’s Restart and Recovery Commission Economics and Fiscal Policy Working Group.

Entities that could respond to the RFI may include: PPE manufacturers and suppliers, technology companies, medical or office equipment retailers or wholesalers, existing or new buying cooperatives or consortia, non-profit organizations, industry or trade groups, and post-secondary educational institutions. Respondents can offer ideas for full solutions for sourcing and distribution of PPE or could address one aspect of the need, such as technological solutions or small business insights.

“Controlling the spread of COVID-19 is the only way to ensure a successful economic recovery, and easy access to PPE is crucial to ensuring businesses can operate while protecting employees and customers,” said NJEDA Chief Executive Officer (CEO) Tim Sullivan, who serves as Co-Chair of Governor Murphy’s Restart and Recovery Advisory Council. “The Murphy administration is committed to ensuring that all small businesses and organizations, especially those owned by women, minorities and people of color, veterans, and other vulnerable communities have equal access to the PPE they need to restart and grow in the new economic landscape COVID-19 has created.”

The Restart and Recovery Advisory Council brings together leaders from diverse industry groups and community organizations throughout New Jersey to advise state leadership on economic matters impacted by COVID-19.

Businesses that are able to produce or source larger-scale wholesale PPE orders are encouraged to visit the State’s PPE Supplier Registry. Wholesale vendors with PPE inventory such as surgical or other protective masks, hospital gowns, hand sanitizer, or COVID-19 test kits can submit details on available supplies and hospitals, medical organizations, and private businesses can purchase. To date, more than 1,450 businesses have registered on the database, offering more than 3,800 products. The database is updated several times per week, and is easily filtered and sorted by product type, size, payment terms, location of supplier, and several other criteria. Suppliers who wish to be included in the Registry should fill out the PPE Supplier Registry intake form.

All questions concerning the RFI must be submitted in writing no later than 11:59PM EDT, on Tuesday, June 23^rd, 2020, via e-mail to: SmallBusinessPPE@njeda.com. Answers to questions submitted will be publicly posted on the Authority’s website on or about Wednesday, June 24^th, 2020.
 
Final responses to the RFI must be submitted in writing no later than 11:59PM EDT, on Friday, June 26th, 2020  via e-mail to: SmallBusinessPPE@njeda.com. The subject line of the e-mail should state: “RFI Response-2020-RFI-OET-Covid19-PPE-107.”
 
Information for COVID-19-impacted business is available on the State’s business portal: 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.

COVID-19 Outbreak
New Jersey Economic Development Authority (NJEDA)
Small Business Emergency Assistance Grant Program – Phase 2
Notice of Funding Availability: Application will open at 9:00 am on Tuesday, June 9, 2020
(Revised as of June 5, 2020)

Para ver esta información en español, haga clic aquí

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 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 our state’s economy.
 
On March 26, 2020, the New Jersey Economic Development Authority (NJEDA) approved the creation of the Small Business Emergency Assistance Grant Program – an emergency grant funding program to provide funding as efficiently and quickly as possible to certain small and medium sized enterprises, i.e., businesses and non-profits (SMEs), that needed payroll and working capital support as a result of adverse economic impacts following the March 9, 2020 declaration of a State of Emergency and a Public Health Emergency.
 
The initial phase of the grant program focused on the smallest enterprises in targeted industries that were among the most adversely impacted by the containment measures. The NJEDA utilized $5 million from its own unrestricted monies, along with $2 million in funding contributed by the Casino Reinvestment Development Authority (CRDA) in support of impacted entities in Atlantic County, to fund the original Small Business Emergency Assistance Grant Program.
 
Utilizing $45 million in additional funding from the from the Coronavirus Relief Fund, as established under the Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, the NJEDA is implementing a second phase of the Small Business Emergency Assistance Grant Program with less restrictive eligibility requirements to assist a larger number of SMEs.
 
Purpose
 
The purpose of the Small Business Emergency Assistance Program – Phase 2 is to provide short-term, immediate payroll and working capital support to additional New Jersey SMEs, with fewer than 25 full-time employees (FTEs), that have been negatively impacted during the declared state of emergency, thereby helping to stabilize their operations and minimizing any potential furloughs and/or layoffs.
 
Under the initial phase of the program, eligibility was restricted to businesses of no more than 10 FTEs. In Phase 2, the employee eligibility cap is increased to no more than 25 FTEs. Furthermore, the initial phase of the program restricted eligibility to entities that were operating under a very narrow set of industries as determined by the North American Industry Classification (NAICS) code. In Phase 2, the program is not restricted by NAICS code, with the exception of certain prohibited businesses as outlined below. In Phase 2, funding is also available to home-based businesses and sole proprietors registered within the State, both of which were ineligible under the initial phase of the program. Finally, eligibility for non-profit entities was originally limited to only 501(c)(3), 501(c)(4), and 501(c)(7) organizations. On June 9, 2020, Board approval will be sought to extend eligibility to all 501(c) organizations. All such organizations are welcome to apply; approval will be conditioned on Board approval (as well as other eligibility requirements).
 
Eligible Uses
 
Under the Small Business Emergency Assistance Grant Program – Phase 2, funding may be used for reimbursement of lost revenue as a result of business interruption caused by COVID-19 and may not be used for capital expenses, including construction.
 
Grant Amounts
 
In Phase 2, a similar methodology is utilized for calculating a grant award, with a larger potential maximum award amount of $10,000, increased from $5,000 in the initial phase of the Small Business Emergency Assistance Grant Program.
 
Specifically, eligible SMEs can now receive $1,000 per FTE up to the $10,000 maximum. A company that is a sole proprietorship or otherwise has no FTEs, would receive the minimum grant amount of $1,000. For the purpose of calculating the grant amount, the NJEDA will utilize the SME’s most recent New Jersey WR-30 filing with the New Jersey Department of Labor and Workforce Development – any implied FTE calculations will be rounded to the nearest FTE, e.g., 2.24 FTE would be counted as 2 FTE for the program, whereas 2.50 or 2.75 FTE would be counted as 3 FTE. While the calculation of FTEs is based on weeks worked and wages, as reported on the 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, except that if a sole proprietor or other applying entity has no FTEs, it may be eligible for the minimum grant award of $1,000. For entities like sole proprietorships, the NJEDA will work with the Division of Taxation in the Department of Treasury, to identify tax filing status.
 
The minimum grant amount, per application, is $1,000. The maximum grant amount per application is $10,000 even in cases where an SME employs over 10 FTEs.
 
Eligible Applicants
 
Under the Small Business Emergency Assistance Grant Program – Phase 2, SMEs that were approved for grant funding in the initial phase of the program with 5 or fewer FTEs, will not be eligible for additional funding, as they will have already received their maximum funding amount of up to $5,000.
 
Eligible SMEs 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.), and home-based businesses must be located in New Jersey. Any non-profit applicants must be organized as either 501(c)(3), 501(c)(4), or 501(c)(7) entities to be eligible.
 
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 sales; sales by transient merchants, Christmas tree sales or other outdoor storage; and, any activity constituting a nuisance; or any illegal purposes.
 
The CEO/equivalent officer of each eligible SME must self-certify that the firm:
 

• Was in operation on February 15, 2020 (consistent with the federal Paycheck Protection Program implemented by the Small Business Administration);

• 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 on March 9, 2020 (SMEs that have already furloughed or laid off workers from the time of application 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 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, is in good standing with the New Jersey Department of Labor and Workforce Development, and meets the requirement by the Division of Taxation in the Department of Treasury to ensure that the applicant does not have tax debts due to the State. Evidence may be presented in the form of a certification by the applicant subject to repayment if the certification is not correct.
 
Each eligible SME may 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).
 
Finally, additional eligibility requirements may apply, which will be based on any applicable Federal requirements related to the Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, and may include, but not be limited to, a restriction on duplication of benefits that could exclude potential applicants that have already received Federal assistance, as well as a requirement that the applicant further demonstrate that it has had negative impacts from COVID-19.
 
Funding Disbursement
 
Funding to be fully disbursed as quickly as possible upon approval of grant application.
 
Of the total funding available, $15 million will be set aside from all contributed or donated funds to support entities that meet all other applicable eligibility criteria and have a commercial business address (or home address for home-based businesses) located (fully or partially) in a census tract that was eligible to selected as New Jersey Opportunity Zone (i.e. a New Market Tax Credit census tract). Any amount of the set aside that remains after processing all applications from entities in Opportunity Zone eligible census tracks, may be used for any other applicant.
 
Application Process
 
In expectation that the grant program will be oversubscribed, online applications will be accepted on a first-come, first-served basis, based upon the date in which the Authority receives a completed the application submission.  The NJEDA will review applications in the order in which they are received.
 
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 – Phase 2 may be found at http://cv.business.nj.gov.

Brote de COVID-19
New Jersey Economic Development Authority (NJEDA)
Programa de Subvenciones de Asistencia de Emergencia para Pequeñas Empresas – Fase 2
Aviso de disponibilidad de fondos: la solicitud se abrirá a las 9:00 a.m.el martes 9 de junio de 2020
 
Visión general

El 9 de marzo de 2020, el gobernador Phil Murphy emitió la Orden ejecutiva 103, declarando un estado de emergencia y una emergencia de salud pública para intensificar los esfuerzos de Nueva Jersey para contener la propagación de COVID-19. Las medidas de contención posteriores se implementaron, incluidas las restricciones a las reuniones públicas y el cierre obligatorio de negocios no esenciales. Si bien estas medidas son consistentes con medidas similares que se están tomando a nivel nacional que se espera que limiten la exposición del público a COVID-19, ha habido y continuará teniendo un impacto adverso significativo en la economía de nuestro estado.

El 26 de marzo de 2020, la New Jersey Economic Development Authority (NJEDA) aprobó la creación del Programa de Subvenciones de Asistencia de Emergencia para Pequeñas Empresas, un programa de financiación de subvenciones de emergencia para proporcionar fondos de la manera más eficiente y rápida posible a ciertas pequeñas y medianas empresas, es decir , empresas y organizaciones sin fines de lucro (PYME), que necesitaban apoyo de nómina y capital de trabajo como resultado de impactos económicos adversos luego de la declaración del 9 de marzo de 2020 de un estado de emergencia y una emergencia de salud pública.

La fase inicial del programa de subvenciones se centró en las empresas más pequeñas en industrias específicas que se encontraban entre las más afectadas por las medidas de contención. NJEDA utilizó $ 5 millones de su propio dinero sin restricciones, junto con $ 2 millones en fondos aportados por la Autoridad de Desarrollo de Reinversión de Casino (CRDA) en apoyo de las entidades afectadas en el Condado de Atlantic, para financiar el Programa original de Subsidios de Asistencia de Emergencia para Pequeñas Empresas.
Utilizando $ 45 millones en fondos adicionales del Fondo de Ayuda Coronavirus, según lo establecido en la Ley Federal de Ayuda, Ayuda y Seguridad Económica Coronavirus (CARES), NJEDA está implementando una segunda fase del Programa de Subsidios de Asistencia de Emergencia para Pequeñas Empresas con menos restricciones requisitos de elegibilidad para ayudar a un mayor número de PYME. 
 
Propósito

El propósito del Programa de Asistencia de Emergencia para Pequeñas Empresas – Fase 2 es proporcionar nómina inmediata a corto plazo y apoyo de capital de trabajo a PYME de Nueva Jersey adicionales, con menos de 25 empleados a tiempo completo (FTE), que se han visto negativamente afectados durante el declarado estado de emergencia, ayudando así a estabilizar sus operaciones y minimizando posibles permisos y / o despidos.

En la fase inicial del programa, la elegibilidad se limitaba a empresas de no más de 10 ETC. En la Fase 2, el límite de elegibilidad de los empleados aumenta a no más de 25 ETC. Además, la fase inicial del programa restringió la elegibilidad a entidades que operaban bajo un conjunto muy limitado de industrias según lo determinado por el código de Clasificación de la Industria de América del Norte (NAICS).

En la Fase 2, el programa no está restringido por el código NAICS, con la excepción de ciertas empresas prohibidas como se describe a continuación. En la Fase 2, los fondos también están disponibles para empresas en el hogar y propietarios únicos registrados dentro del Estado, los cuales no eran elegibles para la fase inicial del programa. Finalmente, la elegibilidad para entidades sin fines de lucro se limitó originalmente a solo 501 (c) (3), 501 (c) (4) y 501 (c) (7) organizaciones. El 9 de junio de 2020, se buscará la aprobación de la Junta para extender la elegibilidad a todas las organizaciones 501 (c). Todas estas organizaciones son bienvenidas para postularse; la aprobación estará condicionada a la aprobación de la Junta (así como a otros requisitos de elegibilidad).

Usos elegibles

Bajo el Programa de Subsidios de Asistencia de Emergencia para Pequeñas Empresas – Fase 2, el financiamiento puede usarse para el reembolso de ingresos perdidos como resultado de la interrupción del negocio causada por COVID-19 y no puede usarse para gastos de capital, incluida la construcción.

Subvenciones

En la Fase 2, se utiliza una metodología similar para calcular la concesión de una subvención, con un monto máximo de adjudicación potencial mayor de $ 10,000, aumentado de $ 5,000 en la fase inicial del Programa de Subvención de Asistencia de Emergencia para Pequeñas Empresas.

Específicamente, las PYME elegibles ahora pueden recibir $ 1,000 por FTE hasta el máximo de $ 10,000. Una compañía que es una empresa unipersonal o que de otra manera no tengan ETC, recibiría el monto mínimo de la subvención de $ 1,000. Con el fin de calcular el monto de la subvención, NJEDA utilizará la presentación WR-30 de Nueva Jersey más reciente de la PYME ante el Departamento de Trabajo y Desarrollo de la Fuerza Laboral de Nueva Jersey: cualquier cálculo de ETC implícito se redondeará al ETC más cercano, por ejemplo, 2.24 ETC se contaría como 2 ETC para el programa, mientras que 2,50 o 2,75 ETC se contarían como 3 ETC. Si bien el cálculo de los ETC se basa en las semanas trabajadas y los salarios, como se informó en la presentación del WR-30, en ningún caso una empresa recibirá fondos de subvención basados ​​en una cantidad de ETC que exceda la cantidad de empleados empleados por la empresa, excepto que si un propietario único u otra entidad solicitante no tiene ETC, puede ser elegible para la subvención mínima de $ 1,000. Para entidades como empresas individuales, NJEDA trabajará con la División de Impuestos en el Departamento del Tesoro, para identificar el estado de presentación de impuestos.

El monto mínimo de la subvención, por solicitud, es de $ 1,000. El monto máximo de la subvención por solicitud es de $ 10,000 incluso en los casos en que una PYME emplea a más de 10 ETC.

Eligible Applicants

Bajo el Programa de Subvención de Asistencia de Emergencia para Pequeñas Empresas – Fase 2, las PYME que fueron aprobadas para subvenciones en la fase inicial del programa con 5 o menos ETC, no serán elegibles para recibir fondos adicionales, ya que ya han recibido su monto máximo de fondos de hasta $ 5,000.
Las PYME elegibles deben tener una ubicación comercial física en el estado de Nueva Jersey (por ejemplo, una oficina, un punto de venta físico, un almacén, una instalación de fabricación, etc.), y las empresas en el hogar deben estar ubicadas en Nueva Jersey. Todos los solicitantes sin fines de lucro deben organizarse como entidades 501 (c) (3), 501 (c) (4) o 501 (c) (7) para ser elegibles.

Los negocios prohibidos incluyen, entre otros: juegos de azar o actividades de juego; la conducta o el suministro de actividades, servicios, productos o materiales "adultos" (es decir, pornográficos, lascivos, prurientes, obscenos o de otra manera de mala reputación similares) (incluidas actuaciones desnudas o semidesnudas o la venta de dispositivos o ayudas sexuales); cualquier subasta o quiebra o incendio o "pérdida de nuestro contrato de arrendamiento" o "cierre de negocio" o ventas similares; ventas por comerciantes transitorios, ventas de árboles de Navidad u otro almacenamiento al aire libre; y, cualquier actividad que constituya una molestia; o cualquier propósito ilegal.

El CEO / funcionario equivalente de cada PYME elegible debe autocertificarse de que la empresa:

• Estaba en funcionamiento el 15 de febrero de 2020 (de conformidad con el Programa federal de protección de cheques de pago implementado por la Administración de Pequeñas Empresas);

• Hará todo lo posible para no suspender o despedir a ninguna persona desde el momento de la solicitud hasta seis meses después del final del Estado de Emergencia declarado el 9 de marzo de 2020 (PYME que ya han despedido o despedido a trabajadores desde el momento de la solicitud) la solicitud debe comprometerse con el mejor esfuerzo para volver a contratar a esos trabajadores lo antes posible): cualquier incumplimiento  sustancial de su certificación de mejores esfuerzos puede dar lugar a que NJEDA busque el reembolso de la subvención;

• Se ha visto afectado negativamente por el estado de emergencia declarado por COVID-19 el 9 de marzo de 2020 (por ejemplo, se ha cerrado temporalmente, se le ha exigido que reduzca las horas, ha tenido al menos una caída del 20 por ciento en los ingresos, se ha visto materialmente afectado por empleados que no pueden trabajar debido al brote o que tienen una cadena de suministro que se ha interrumpido materialmente y, por lo tanto, ralentizó la producción a nivel de empresa); y

• Tiene una necesidad financiera material que no puede superarse sin la concesión de fondos de ayuda de emergencia en este momento (por ejemplo, no tiene reservas de efectivo significativas que puedan apoyar a las PYME durante este período de interrupción económica).

Además, una PYME elegible debe mostrar evidencia, en el momento de la solicitud, de que la PYME está registrada para hacer negocios en el estado de Nueva Jersey, cumple con los requisitos del Departamento de Trabajo y Desarrollo de la Fuerza Laboral de Nueva Jersey y cumple con el requisito por la División de Impuestos del Departamento del Tesoro para garantizar que el solicitante no tenga deudas tributarias con el Estado. El solicitante puede presentar evidencia en forma de certificación sujeta a reembolso si la certificación no es correcta.

Cada PYME elegible puede presentar una solicitud por Número de identificación de empleador, es decir, las PYME con múltiples Números de identificación de empleador (EIN) pueden presentar una solicitud por EIN; y, las empresas con múltiples ubicaciones pero solo un EIN se limitarán a una aplicación (bajo el único EIN).
Finalmente, pueden aplicarse requisitos de elegibilidad adicionales, que se basarán en los requisitos federales aplicables relacionados con la Ley Federal de Ayuda, Alivio y Seguridad Económica de Coronavirus (CARES), y pueden incluir, entre otros, una restricción en la duplicación de beneficios eso podría excluir a los posibles solicitantes que ya han recibido asistencia federal, así como el requisito de que el solicitante demuestre además que ha tenido un impacto negativo de COVID-19.

Desembolso de fondos

Los fondos se desembolsarán en su totalidad lo más rápido posible una vez aprobada la solicitud de subvención.

Del total de fondos disponibles, $ 15 millones se apartarán de todos los fondos aportados o donados para apoyar a las entidades que cumplan con todos los demás criterios de elegibilidad aplicables y tengan una dirección comercial (o domicilio para negocios en el hogar) ubicada (total o parcialmente) en una sección del censo que era elegible para ser seleccionada como Zona de Oportunidad de Nueva Jersey (es decir, una sección del censo de Crédito Fiscal del Nuevo Mercado). Cualquier cantidad de la reserva que quede después de procesar todas las solicitudes de las entidades en las pistas del censo elegibles de Opportunity Zone, se puede usar para cualquier otro solicitante.

Proceso de solicitud

Con la expectativa de que el programa de subvención se suscribirá en exceso, las solicitudes en línea se aceptarán por orden de llegada, en función de la fecha en que la Autoridad reciba una presentación completa de la solicitud. NJEDA revisará las solicitudes en el orden en que se reciben.

Tarifa

Debido a dificultades financieras, la Autoridad no cobrará tarifas por este programa.

Información Adicional
Puede encontrar información adicional sobre el Programa de Subsidios de Asistencia de Emergencia para Pequeñas Empresas – Fase 2 en http://cv.business.nj.gov.

A telephonic meeting of the Commission of Science, Innovation and Technology (CSIT) Board has been scheduled for Friday, June 5, 2020 at 10:30 am.

CSIT BOARD MEETING
PARTICIPANT DIAL-IN NUMBERS:   1-888-431-3598
PARTICIPANT AUTOMATED CONFERENCE ID:   8068877

 

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

Please be advised that a telephonic meeting of the New Jersey Economic Development Authority is scheduled for 10:00 AM, Tuesday, June 9, 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 (June 9, 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.

Under the direction of UCEDC President Adam Farrah (pictured here with Djenaba Johnson-Jones, the owner of Hudson Kitchen), the CDFI has dispersed over $1 million in loans to small and microbusinesses in New Jersey.
 

TRENTON, N.J. (May 28, 2020) – With the COVID-19 outbreak impacting New Jersey’s smallest businesses especially hard, Community Development Financial Institutions (CDFIs) are instrumental in connecting micro and small businesses with the funding they need to survive the economic impact of the pandemic. Since launching its COVID-19 Crisis Relief Loan Program in March, Union County-based UCEDC, a non-profit economic development corporation, has dispersed over $1 million in loans to small and microbusinesses in New Jersey.

What distinguishes non-profit CDFI lenders from other financial institutions is their community development mission and flexibility to determine the best use of limited federal resources in their community. To be classified as a CDFI, a financial institution must certify that at least 60 percent of its financing activities are targeted to low- and moderate-income (LMI) populations or underserved communities.

UCEDC is one of six CDFIs that partnered with the New Jersey Economic Development Authority (NJEDA) shortly after Governor Phil Murphy declared a state of emergency in March. Together, these partnerships will leverage New Jersey-based CDFIs to provide between $20 million and $30 million in low-cost financing to small and microbusinesses and nonprofits impacted by the COVID-19 outbreak.

“Small businesses, and particularly those in underserved communities, are bearing the brunt of the economic crisis caused by the Coronavirus pandemic,” said NJEDA Chief Executive Officer Tim Sullivan. “CDFIs are a lifeline for so many small business owners during this time and our partnership with them will serve to bolster the impact that they have on the local levels as we seek to begin to recover and re-open from this global health crisis.”

Through the newly-created CDFI Emergency Assistance Grant Program, the NJEDA is providing $250,000 in grant funding to UCEDC to help the CDFI scale its operations due to the high demand for assistance from business owners. The funding also enables UCEDC to buy down interest rates on its loans to offer borrowers more flexible loan terms at lower rates to help small and micro businesses survive during this COVID-19 outbreak.

In addition to the funding from the NJEDA, support UCEDC received from Investors Bank and the Tory Burch Foundation has enabled the CDFI to reduce its loan interest rates to zero-percent for small businesses impacted by COVID-19. Companies that have been in operation for more than two years are eligible to apply for loans of up to $15,000, while those in business for one to two years can apply for up to $10,000.

“Investors Bank is dedicated to supporting small businesses in New Jersey and looks forward to partnering with UCEDC to ensure resources are deployed to underserved markets,” said John Nietzel, Investors Bank Senior Vice President, Government Banking & Advisory Boards.

Investors Bank was the first to offer UCEDC assistance for small businesses affected by the coronavirus pandemic, just as they were in the aftermath of Superstorm Sandy. The Tory Burch Foundation works with community lenders to ensure that female business owners and entrepreneurs have access to the capital they need to succeed. Since launching in March, UCEDC’s COVID-19 Crisis Relief Loan Program has provided over $1 million to 71 small businesses throughout the state.

UCEDC has over 40 years of experience in helping historically underrepresented business owners access the resources they need to succeed. In addition to providing low-cost loans, UCEDC also offers its customers training services and technical assistance in procuring government contracts.

“As one of only 10 CDFIs in the nation to offer this trifecta of support, we’re in a unique position to offer our customers a complete suite of resources,” said UCEDC President Adam Farrah. “Our training sessions help small business owners learn everything they need to get started – guiding them from their dream of owning their own small businesses through developing a business plan, opening their doors, and beyond.”

In 2019, UCEDC held 117 training workshops, which had a combined 1,242 attendees. The CDFI also facilitated the mentoring of 514 clients for a total of 2,506 hours. UCEDC helped clients secure a total of 1,604 government contracts in excess of $76 million.

Farrah noted that COVID-19 has brought an increase in business owners benefiting from UCEDC’s workshops, which are now offered online. 

UCEDC works with its customers to find specific solutions that fit their individual borrowing needs, offering loans from $500 to $5.5 million. Last year, UCEDC provided 76 loans, totaling $5.1 million to businesses throughout New Jersey and parts of Pennsylvania and New York. Nearly 65 percent of businesses and startups receiving funding were women-owned and 59 percent were minority-owned. Through its various U.S. Small Business Administration (SBA) loan programs, UCEDC is able to approve loans that would not otherwise be eligible for funding from traditional commercial lenders.
 
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.

Ahora hay financiamiento disponible para negocios en el hogar y empresas individuales; algunos fondos están reservados para empresas en comunidades de bajos ingresos.

TRENTON, N.J. (22 de mayo de 2020) – La New Jersey Economic Development Authority (NJEDA) anunció hoy una expansión de $50 millones para su Small Business Emergency Assistance Grant Program (Programa de Subsidios para Asistencia de Emergencia a Pequeñas Empresas), que proporciona fondos a pequeñas empresas que enfrentan desafíos financieros como resultado de la pandemia de COVID-19. El programa ampliado proporcionará subsidios de hasta $10,000 a empresas calificadas y flexibiliza los criterios de elegibilidad para incluir a una variedad más amplia de empresas, así como también negocios en el hogar y empresas individuales. Para garantizar la equidad, se reservarán $15 millones para las empresas en los distritos censales elegibles como Zonas de Oportunidades.
 
Los fondos para la expansión del programa de subsidios provendrán del Fondo de Ayuda por Coronavirus federal establecido conforme a la Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act.
 
“La COVID-19 ha creado una crisis sin precedentes para las pequeñas empresas de New Jersey. Desde el principio, NJEDA ha trabajado incansablemente para ayudar a los propietarios de empresas y sus empleados, pero rápidamente se hizo evidente que el alcance de los desafíos que presenta este virus se extendió mucho más allá de lo que podríamos abordar solo con nuestros recursos”, declaró el Director Ejecutivo de NJEDA, Tim Sullivan. “Esta asistencia federal tan necesaria nos permitirá ayudar a miles de empresas adicionales que no fueron elegibles para la primera ronda de subsidios, con un enfoque particular en las empresas de las comunidades más vulnerables”.
 
El brote del nuevo coronavirus ha creado una importante crisis de salud pública en New Jersey. Para frenar la propagación del virus, el gobernador Phil Murphy implementó una variedad de medidas de contención, incluidas restricciones a las reuniones públicas y el cierre obligatorio de negocios no esenciales. Para mitigar el impacto económico de estas políticas de salud pública, NJEDA creó el Small Business Emergency Assistance Grant Program (Programa de Subsidios para Asistencia de Emergencia a Pequeñas Empresas). Además de los $5 millones que NJEDA destinó a este programa, la Casino Reinvestment Development Authority (CRDA) donó $2 millones para ayudar a las empresas en el condado de Atlantic. Más de 34,000 empresas solicitaron fondos a través del programa. Al 22 de mayo de 2020, NJEDA ha otorgado más de $5.5 millones en subsidios a más de 1,600 empresas en los 21 condados.
 
Durante la Fase 2 del programa de subsidios, se usarán $5 millones para financiar a empresas que fueron incluidas en la lista de espera durante la Fase 1 y $45 millones de los fondos de la CARES Act se usarán para proporcionar subsidios de hasta $10,000 a una gama de empresas elegibles significativamente más amplia que la de la fase anterior. Se recomienda a los solicitantes que no alcanzaron a incluirse en la Fase 1 que presenten sus solicitudes para la segunda fase del programa expandido.
 
"Desde el comienzo de la pandemia, nos hemos centrado en proporcionar a los propietarios de pequeñas empresas los recursos financieros que necesitan para resistir el brote de COVID-19", dijo el senador estadounidense Robert Menéndez.  "Trabajar con NJEDA para utilizar los fondos de el CARES Act para expandir el Programa de Subsidios de Asistencia de Emergencia para Pequeñas Empresas hará posible que una gama mucho más amplia de pequeñas empresas acceda al apoyo que necesitan para superar este desafío sin precedentes y prepararse para una fuerte recuperación".
 
Los cambios en los requisitos de elegibilidad para la Fase 2 son un aumento en el límite de 10 empleados de tiempo completo (FTE) a 25 FTE para las empresas y la eliminación de las restricciones del código NAICS que estuvieron vigentes en la Fase 1 para permitir que casi todas las empresas, así como las organizaciones sin fines de lucro 501(c)(3), 501(c)(4) y 501(c)(7), puedan calificar para el financiamiento. La Fase 2 también pone a disposición subsidios para negocios en el hogar y empresas individuales, los cuales no fueron elegibles durante la Fase 1. Para garantizar que los fondos se destinen a las empresas y comunidades que más lo necesitan, se apartarán $15 millones de la Fase 2 para ayudar a las empresas calificadas ubicadas en uno de los 715 distritos censales elegibles como Zonas de Oportunidades de New Jersey.
 
“Cada vez es más claro que la pandemia de coronavirus está creando enormes desafíos para todos, está teniendo un impacto particularmente trágico en nuestras comunidades que estan en la categoria de mas riesgo. El Programa de Subsidios de Asistencia de Emergencia para Pequeñas Empresas de NJEDA ha sido un recurso vital para los dueños de negocios que estan pasando los momentos más difíciles que hayan experimentado, y me alegra ver que la Autoridad hace la equidad una pieza central de la segunda fase del programa ", dijo el senador Cory Booker. "Reservar recursos para empresas en comunidades de alta pobreza ayudará a garantizar el apoyo a aquellos que lo necesitan al tiempo que protege a los habitantes de Nueva Jersey más vulnerables y nos prepara para una recuperación más rápida y más justa".
 
Como parte de la solicitud, el Director Ejecutivo o un funcionario equivalente debe certificar que la empresa estaba en funcionamiento el 15 de febrero de 2020, que se ha visto afectada negativamente por el brote de COVID-19 y que hará todo lo posible para no suspender ni despedir a ningún empleado. Para cumplir con las disposiciones de duplicación de beneficios conforme a la Ley Stafford, los solicitantes también deberán completar una declaración jurada que identifique todos los fondos recibidos anteriormente relacionados con la COVID-19, incluidos los préstamos y subsidios de la Small Business Administration, las partes condonables de los préstamos de protección de nómina y los subsidios por pérdidas económicas por desastre.
 
“Las empresas están buscan ayuda para recuperarse, pero en ninguna parte el desafío es mayor que en las comunidades de color. La estructura del enfoque de NJEDA a esta nueva ola de subvenciones conducirá a una mayor equidad y una recuperación más consistente en todas las partes del estado ", dijo el presidente y CEO de la Cámara de Comercio Afroamericana, John Harmon.
 
"Los criterios de elegibilidad ampliados incorporados en esta segunda ronda de apoyo de NJEDA ayudarán a abordar el impacto desproporcionado que el brote de coronavirus está teniendo en diversas y pequeñas empresas", dijo el Director Ejecutivo de la Cámara de Comercio Hispana del Estado, Carlos Medina. "Esperamos asociarnos con NJEDA para garantizar que todos los propietarios de negocios conozcan los recursos disponibles y tengan el apoyo que necesitan para asegurar el capital que tanto necesitan".
 
Las solicitudes para la Fase 2 del Small Business Emergency Assistance Grant Program (Programa de Subsidios para Asistencia de Emergencia a Pequeñas Empresas) estarán disponibles pronto. El personal de NJEDA procesará las solicitudes por orden de llegada. No habrá cargos por presentar la solicitud. Puede encontrar más información sobre la respuesta ante la COVID-19 de New Jersey en https://cv.business.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.

A Special Telephonic meeting of the New Jersey Economic Development Authority is scheduled for 10:00 am, Friday, May 22, 2020.
 
The Members will convene to via conference call only to discuss and vote upon measures to address the Public Health Emergency and State of Emergency related to the Coronavirus pandemic, which may include, but is not limited to, funding for new and existing small business grant programs and delegated authority to implement such programs.
 
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:
 
PROGRAM TITLE: NJEDA BOARD MEETING (May 22, 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 at our website: www.njeda.gov. 

  By Richard Kasmin, NJEDA Chief Economist

Modern economies are nothing short of miraculous. They’re also incredibly complex. Globally, billions of people trade their labor and output with one another, valued by the International Monetary Fund at upwards of $90 trillion in annual production (GDP). This output is supported by global debt valued in 2018 at $188 trillion. That’s more than $2 in public (government) and private debt for every $1 of output.

For advanced economies (e.g.: North America, Europe, China, Japan), public debt as a ratio to GDP rose from around 70% just ahead of the great financial crisis (2008-2009) to around 100% in 2018 (see chart below). Most of this approximately 30 percentage point increase happened in the immediate aftermath of the great financial crisis. Why did this happen? What was the purpose of these governments incurring all this debt? And what does that increase in public debt tell us about how to deal with the economic impact of the Coronavirus crisis?

Advanced Economy Public Debt % of GDP

Before addressing these questions, we must first get a grasp of the nature of the current economic problem. What’s going on right now? When diagnosing issues in the economy, I often find it helpful to imagine the economy as if it were a play with these four roles:

• Private businesses
• Households
• Financial markets
• Government

Understanding these roles and how they interact with one-another helps explain how any shock to the economy differentially impacts actors in the economy and how to address the impacts of the shock.

So, imagine the economy is humming along. People are going to work, companies are producing goods and services, taxes are being paid, financial markets are easily directing flows of capital, and so on. Then the Coronavirus hits and the economy is forced to freeze – something that has no parallel in post-WWII history. What happens?
 
Act 1 – An Economic Freeze      
                                                                 
When the freeze hits, the actors in our play do the following:

  ​1. Private businesses and households are forced to face the tension between anchored expenses and 
      unanchored income:

       a. Their debts and many of their expenses are fixed, while
       b. Their income isn’t.

  2. To preserve financial capital given the loss of income, private businesses shed expenses. Their main
      expense is labor, so businesses fire or “furlough” workers.

  3. Households are the suppliers of labor, and the decline in demand for their services leads to a drastic drop in
      household income, which in turn causes sharp declines in consumer demand.

  4. This decline in demand forces private businesses to shed more labor, which then leads to more household
       income loss. Thus, a vicious cycle between private business and households is in play.

  5. The government then faces a crisis as tax income drops while the need for government assistance rises.

Simultaneously, financial asset prices drop due to:

  1. Increased default risk – that tension between anchored expenses and unanchored income;

  2. Lower GDP, which leads to lower asset valuations;

  3. A scramble for cash due to liquidity constraints from the decline in income and asset valuations (financial
      firms and households sell assets, and it’s tough to find buyers for these financial assets);

  4. And there are capital calls – investors are forced to pledge more capital (cash) when the value of their   
      assets drop – which leads to needs for even more cash, which causes more sales of assets and further
      drops in valuation, and so on. This is another vicious cycle.

The drop in financial asset valuation obviously has a negative impact on private business and households. Feeling less wealthy and panicked about financial market stability, businesses and households further curtail consumption and investment, creating another reason for a downward vicious cycle.

Thus, Act One ends with an economy in freefall. There are downward spirals in business and household income. Financial asset prices are dropping as valuations erode and investors are forced to sell into an illiquid market in a scramble for cash. Confidence in the economy has been shattered. If left to its own devices, this downward economic spiral will continue until the economy hits some version of rock bottom. What to do?
 
Act 2 – Fill the Hole and Stabilize the Financial System

What’s been done is attack the economic freefall on two fronts: attempt to fill the income hole and attempt to stabilize financial markets. This is done so the economy can hopefully avoid what Federal Reserve Chairman Powell described as “unnecessary insolvencies,” or business failures caused by the virus to otherwise sound companies. Unnecessary insolvencies cause destruction of the economy’s productive capacity and dampening the prospects for economic recovery. The attacks are fueled by two sources — US Treasury debt and Federal Reserve funds (otherwise known as reserves).

To date, the United States government has pledged more than $3 trillion, generated by debt creation. The US economy generates around $20 trillion in GDP per year, and some estimates have US economic output declining around 10-15% before rebounding during the summer. Thus, one way to think of the $3 trillion created by the federal government is as filling the economic hole created by the virus.

The Federal Reserve can create funds, or reserves, virtually out of thin air. It has used this power to intervene in financial markets to lend funds and buy assets where the market is not functioning adequately.

What follows explains the dynamics involved.

  1. Because the federal government can:

     a. (theoretically) create an unlimited amount of debt to supplement lost income;
     b. essentially ‘team up’ with its central bank – the Federal Reserve — to create unlimited currency to
         purchase debt and provide a financial backstop;
     c. tax people and businesses to generate income and receive payment for those taxes in the currency the
         federal government creates;

  2. The US Treasury issues debt to:

     a. provide funds for businesses so they can retain employees, pay debts, and hopefully enable them to
         survive the crisis;
     b. provide funds to households via enhanced unemployment insurance and one-time checks so they can
         keep up with living expenses and debt payments;
     c. provide funds to the medical care industry;
     d. and provide funds to state and local governments so they can supplement revenue loss and keep up with
         the rise in expenses incurred by the economic downturn;

  3. And the Federal Reserve utilizes its ability to create money to:

     a. become “the lender of last resort,” lending dollars to households, businesses, state and local
         governments, and even other countries;
     b. buy (or simply rely on the threat to buy) US Treasury debt to keep long-end interest rates low;
     c. and lower the short-term Federal funds interest rates in the hopes of stimulating economic activity.

All this said, the federal government cannot do this all on its own. The private banking system and other financial firms are necessary partners in utilizing their capital, funds created by the Federal Reserve (otherwise known as reserves) and institutional knowledge to provide loans and liquidity.

Act 3 – To be continued…

As of now, we can’t write Act 3. However, there are some things we can be sure it will contain:

  1. Assuming the government’s funds get to where they’re needed and quickly, they will help stabilize the
      economy so private businesses and households can stabilize, survive the freeze, and bridge the gap
      between anchored costs and unanchored income.

  2. Still, we will likely need more funds to stabilize the economy as the coronavirus impact drags on.
 
Epilogue

There is the potential for financial and economic damage from all the debt that’s been created. It could be in the form of higher future inflation. It could mean the federal government has to significantly change tax and spending policy to lower future deficits and debt. It could lead to depressed financial asset prices, weaker business investment growth, and damped consumer spending plans.

In other words, there is likely to be some form of payback for creating all this money today. But that’s another day’s problem. For now, it’s all about getting through the current crisis so that, when the time comes to take the economy out of the freezer, it can thaw without suffering significant structural damage.

Another question not addressed here is, if it’s so easy to create money, why don’t we just do it to pay for everything we want, like medical care for all? That’s potentially a topic for another Economist’s Corner.

Please be advised that the meeting of the New Jersey Economic Development Authority scheduled
for 10:00 AM, Tuesday, May 12, 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:   877-692-8955
PARTICIPANT AUTOMATED CONFERENCE ID:   4204420
 
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.