The New Jersey Economic Development Authority (NJEDA) recently announced that it is expanding its Small Business Emergency Assistance Loan Grant Program
The New Jersey Economic Development Authority (NJEDA) recently announced that it is expanding its Small Business Emergency Assistance Loan Grant Program, which was created to help support small businesses impacted by the coronavirus (COVID-19) pandemic. The $50 million expansion, which will rely on funding provided under the CARES Act and will provide grants up to $10,000 to a wider range of businesses, including home-based businesses and sole proprietorships. In addition, $15 million will be reserved for businesses in Opportunity Zone-eligible census tracts.
“COVID-19 has created an unprecedented crisis for New Jersey’s small businesses. From the start, the NJEDA has worked tirelessly to support business owners and their employees, but it quickly became clear that the scope of the challenges this virus presents went far beyond what we could address with our resources alone,” NJEDA Chief Executive Officer Tim Sullivan said in a press statement. “This much-needed federal assistance will allow us to support thousands of additional businesses that were not eligible for the first round of grants with a particular focus on firms in the most at-risk communities.”
Small Business Emergency Assistance Loan Grant
The NJEDA’s Small Business Emergency Assistance Grant Program initially launched on April 3, 2020. Within the first hour, the program was oversubscribed. In total, the NJEDA received more than 30,000 applications.
The NJEDA is now adding a second round of funding to the program. At the same time, it is also expanding access to additional New Jersey small businesses. Your organization will be eligible if:
You have 25 or fewer full-time employees, as reported on most recent WR-30 filing with the New Jersey Department of Labor
You have a physical commercial location in the State of New Jersey
You are a Home-based business based at a home located in New Jersey
You are a non-profit organized as a 501(c)(3), 501(c)(4), or 501(c)(7) organization
Your business is registered to do business in the State of New Jersey; does not have any outstanding tax liabilities; and is in good standing with the New Jersey Department of Labor
Businesses will receive $1,000 per full-time employee (FTE), up to a maximum of $10,000. Sole proprietorships or other companies with no full-time employees will receive the minimum grant amount ($1,000). Businesses may use the funds to reimburse revenue lost as a result of a business interruption caused by COVIDi19. Funding can’t be used for capital expenses, including construction.
As part of the application, the business’s Chief Executive Officer or equivalent officer must certify that the company was in operation on February 15, 2020, has been negatively impacted by the COVID-19 outbreak, and will make its best effort not to furlough or lay off any employees. To comply with the duplication of benefits provisions within the Stafford Act, all applicants will also be required to fill out an affidavit identifying all funding previously received related to COVID-19, including Small Business Administration loans and grants, forgivable portions of Payroll Protection loans, and Economic Injury Disaster grants.
Applicants on the oversubscribed list for Phase 1 are encouraged to apply for the expanded second round program. According to NJEDA, applications for Phase 2 of the Small Business Emergency Assistance Grant Program will be available soon. The NJEDA has also established a process for corporate and philanthropic partners to make donations to expand the Program. Gifts to support the Small Business Emergency Assistance Grant Program must be at least $100,000. The gifts must be unrestricted and without conditions. To avoid conflicts of interest, donors must have no existing contracts with the NJEDA and may not enter into a contract with the Authority for at least six months following the donation. This includes tax incentive agreements, financial assistance, bond contracts, leases, and other contracts.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Ashley Brinn, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
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!
