The NJEDA recently announced several new initiatives designed to help New Jersey businesses cope with economic hardships resulting from the COVID-19 pandemic…
The New Jersey Economic Development Authority (NJEDA) recently announced several new initiatives designed to help New Jersey businesses cope with economic hardships resulting from the COVID-19 pandemic. The initiatives include a grant program for small businesses, a zero-interest loan program for mid-size companies, support for private-sector lenders and Community Development Financial Institutions (CDFIs), and funding for entrepreneurs.
“The outbreak of the novel coronavirus in New Jersey has sent us into uncharted territory, and the economic impacts will be significant and far-reaching, especially on Main Street. The scope and scale of this new challenge requires immediate action to support New Jersey workers and businesses,” Governor Phil Murphy said in a press statement. “The new NJEDA programs announced today are a critical step that will mitigate the economic impacts of this unprecedented challenge and help workers and businesses to weather the storm and come out stronger when things return to normal.”
Economic Assistance for New Jersey Businesses Impacted by COVID-19
According to NJEDA, the new programs will provide more than $75 million of State and private financial support, with the opportunity to grow to more than $100 million if additional philanthropic, State, and federal resources become available. Below is a brief summary of the initiatives:
Small Business Emergency Assistance Grant Program: A $5 million program that will provide grants up to $5,000 to small businesses in retail, arts, entertainment, recreation, accommodation, food service, and other services – such as repair, maintenance, personal, and laundry services – to stabilize their operations and reduce the need for layoffs or furloughs.
Community Development Finance Institution (CDFI) Emergency Loan Loss Reserve Fund: A $10 million capital reserve fund to take a first loss position on CDFI loans that provide low-interest working capital to micro-businesses. This will allow CDFIs to withstand loan defaults due to the outbreak, which will allow them to provide more loans at lower interest rates to microbusinesses affected by the outbreak.
CDFI Emergency Assistance Grant Program: A $1.25 million program that will provide grants of up to $250,000 to CDFIs to scale operations or reduce interest rates for the duration of the outbreak.
NJ Entrepreneur Support Program: A $5 million program that will encourage continued capital flows to new companies, largely in the innovation economy, and temporarily support a shaky market by providing 80 percent loan guarantees for working capital loans to entrepreneurs.
Small Business Emergency Assistance Guarantee Program: A $10 million program that will provide 50 percent guarantees on working capital loans and waive fees on loans made through institutions participating in the NJEDA’s existing Premier Lender or Premier CDFI programs.
Emergency Technical Assistance Program: A $150,000 program that will support technical assistance to New Jersey-based companies applying for State and U.S. Small Business Administration programs. The organizations contracted will be paid based on SBA application submissions supported by the technical assistance they provide.
If you need assistance in determining which initiatives are right for you and your business, NJEDA has created an NJ COVID-19 Business Support Eligibility Wizard to help businesses determine which initiatives may be available to them. It anticipates that that applications will open this week. These programs are in addition to other available options, whether in New York or via the CARES Act.
If you have any questions or if you would like to discuss the matter further, please contact the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
States have a problem. As costs and expenses rise, they must find new ways to raise revenue that is politically palatable that the taxpayers can live with. What is a state like New Jersey to do when it is staring at a $1.2 billion budget deficit? It already has exceedingly high property taxes. The sales […]
Beware of Scammers - Don’t Fall for These Trademark Scams
Many trademark scammers send official looking letters or emails urging immediate action to pressure you to pay them money for your trademark or “additional” services you do not require. If you ever receive a notice asking for payment as to your trademark from any such company, DO NOT PAY IT. To all our clients, we […]
Nationwide Preliminary Injunction for CTA Filings Lifted
FinCEN Beneficial Owner Reporting Must be Completed by January 13 for pre-2024 Companies On December 23, 2024, the 5th Circuit Court of Appeals lifted the injunction that stayed the enforcement of the Corporate Transparency Act put into place by a federal judge in Texas. The result is that if you are required to file a […]
FinCEN Corporate Transparency Act filings shut down by the US District Court for the Eastern District of Texas
IMPORTANT UPDATE! FinCEN Corporate Transparency Act filings shut down by the US District Court for the Eastern District of Texas Under the Corporate Transparency Act (CTA), entities that were in existence before January 1, 2024 are required to file Beneficial Owner Reports (BOR) with the Financial Crimes Enforcement Network (FinCEN) before January 1, 2025. Requirements […]
New Intoxicating Hemp Law Will Dramatically Affect New Jersey Cannabis, Hemp, and Liquor Industries
On September 12, 2024, Gov. Phil Murphy signed controversial legislation that will dramatically alter New Jersey’s cannabis, hemp, and liquor industries. The new law aims to regulate the influx of intoxicating hemp products into the marketplace by bringing them under the purview of the New Jersey Cannabis Regulatory Commission (CRC). That means that edibles, THC-infused beverages, […]
Wheels Moving on Reclassification of Cannabis as AG Launches Rulemaking Process
On May 16, 2024, President Joe Biden announced that his administration is committed to reclassifying cannabis. Shortly thereafter, Attorney General Merritt Garland initiated the formal rulemaking process to move cannabis from a Schedule I to a Schedule III drug under the Controlled Substances Act (CSA). “This is monumental,” President Biden said in a video statement […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
