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.
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
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!
