In response to the economic challenges being faced by New Jersey small businesses due to the COVID-19 outbreak, the New Jersey Economic Development Authority (NJEDA) has created the Small Business Emergency Assistance Loan Program. The $10 million program will make direct low-cost financing available to allow New Jersey small businesses and non-profits to cover operating expenses and ensure continuity of operations during the outbreak.
Applications are anticipated to open the week of March 30th. To see whether you might qualify for this program, use the NJ COVID-19 Business Support Eligibility Wizard.
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 much 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)
Types of businesses not eligible:
- Related to gambling or gaming activities
- Related to the purveyance of “adult” (i.e., pornographic, lewd, prurient, obscene) activities, services, products or materials (including nude or semi-nude performances or the sale of sexual aids or devices)
- Auction or bankruptcy or fire or “lost-our-lease” or “going-out-of-business” or similar sale
- Traveling merchant
- Christmas tree sales or other outdoor storage
- Any other activity constituting a nuisance
- Illegal under the laws of the State of New Jersey
This program is structured specifically for entities facing economic challenges due to COVID-19 and provides low-cost and flexible terms, such as:
- 10-year term and amortization
- 0% interest rate (years 1-5), NJEDA’s prevailing interest rate floor (capped at 3.0% years 6-10)
- Deferred repayments for 12 months
There are no fees associated with the Small Business Emergency Loan Program for the first five years of the loan, including application fees, and then standard modification fees will apply.
Applications are targeted to open on the week of March 30th. Completed applications will be considered on a first come, first serve rolling basis.
Check back on this site for more information over the coming week.
Updated: March 28, 2020