The Feliciano Center for Entrepreneurship & Innovation is focused on continuing to support start-ups and small business growth in New Jersey and beyond.
To that end, we’re sharing new initiatives to support local businesses Impacted by COVID-19, introduced by the NJEDA on March 26th.
We’ve highlighted 3 new programs assisting New Jersey Main Street businesses and entrepreneurs now.
#1 / Small Business Emergency Assistance Grant Program
What is it?
A $5 million program that will provide grants up to $5,000 to small businesses in retail, arts, entertainment, recreation, accommodation, food service, and other services – such as repair, maintenance, personal, and laundry services – to stabilize their operations and reduce the need for layoffs or furloughs.
The Small Business Emergency Assistance Grant Program will provide up to $5,000 to NJ-based SMEs that have between 1–10 full time equivalent employees (“FTE”). The grant funding is targeted as unrestricted payroll and working capital support, and cannot be used for any capital expenses, including construction.
Grant values are calculated at $1,000 per FTEs reported on business’ WR-30 filed with the New Jersey Department of Labor and Workforce Development.
- Minimum grant amount (per application): $1,000
- Maximum grant amount (per application): $5,000
Total available funding of up to $5 million of which $3 million of the program funds will be set aside for SMEs with 5 or fewer FTEs.
- Non-profit organizations are eligible for this program. Eligible non-profits must have status of 501(c)(3), 501(c)(4), 501(c)(7)
#2 / Small Business Emergency Assistance Loan Program
What is it?
A $10 million program that will provide working capital loans of up to $100,000 to businesses with less than $5 million in revenues. Loans made through the program will have ten-year terms with zero percent for the first five years, then resetting to the EDA’s prevailing floor rate (capped at 3.00%) for the remaining five years.
The Small Business Emergency Assistance Loan program is designed to provide a direct loan of up to $100,000 to NJ-based small businesses and non-profits organizations that have been in existence for at least one-year and has less than $5 million in annual revenue. These businesses have been negatively impacted by the COVID-19 outbreak (including, but not limited to: reduction of business hours, complete closure of business, at least a 20% decline in revenue, employees unable to work, required to close by government, or disruption of supply chain).
Your organization is eligible for the Small Business Emergency Assistance Loan Program if you…
- Have a physical commercial location in the State of NJ. Home-based businesses are not eligible for this program
- Have been in existence for at least one year
- Have less than $5M annual revenue
- Can show a global debt service coverage ratio of 1.00 (as of December 31st, 2019)
- Are able to demonstrate negative impact related to COVID-19 on or after March 9th, 2020
- Are registered to do business in the State of NJ
- Must certify that the company is in good tax standing with the State
- Are in good standing with the Department of Labor and Workforce Development, with all decisions of good standing at the discretion of the Commissioner of the Department of Labor and Workforce Development
- Are able to provide a CEO certification that the firm will make its best-effort to not lay off employees or will re-hire employees as soon as possible
- Non-profit organizations are eligible for this program; eligible non-profits must have status of 501(c)(3), 501(c)(4), 501(c)(7)
#3 / NJ Entrepreneur Support Program
What is it?
A $5 million program that will encourage continued capital flows to new companies, often in the innovation economy, and temporarily support a shaky market by providing 80 percent loan guarantees for working capital loans to entrepreneurs.
The NJ Entrepreneurship Guarantee Program is a $5 million program that encourages investment by encouraging private sector investors to provide additional working capital loans to NJ-based entrepreneurial businesses in which the investor is already an equity holder. The program provides a guarantee of an investor loan advanced for working capital to an entrepreneurial company that has been impacted by COVID-19. The investment must have been made after the date of emergency (March 9, 2020, as per the Governor’s Executive Order 103). This program will be retroactive to that date.
NJEDA will guarantee up to 80% of the total investment amount, not to exceed $200,000 per NJ entrepreneurial company.
The eligibility requirements for the startup and the investor are as follows:
The entrepreneurial business must:
- Have a minimum of 50% of employees in NJ
- Have less than 25 total employees at the time of application
- Have under $5 million in revenues
- Have corporate headquarters in New Jersey (including at least one C suite member with a principal office in New Jersey)
- Fall under one of the eight sectors outlined in Governor Murphy’s economic plan (advanced manufacturing, information/technology, life sciences, finance and insurance, clean energy, food and beverage, advanced transportation, food and beverage, film and digital media)
- Be registered to do business in NJ and must certify that the company is in good tax standing with the State
- Be in good standing with the Department of Labor and Workforce Development
- Investors can include, but are not limited to, individuals, trusts, and corporations
- Investors must already have equity interest and equity position in the company
- Qualified investors are not required to be New Jersey residents