The NJ Entrepreneur Support 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 investor must have supported the company in the form of a convertible note,  SAFE (simple agreement for equity) or equity investment as of March 9th, 2020 (or prior). The funding for the guarantee must have been made after the date of emergency (March 26, 2020, as per the Governor’s Executive Order 103). This program guarantee will be retroactive to that investment date.

Apply now to the Entrepreneur Support Program

Applications are now being accepted. To see whether you might qualify for this program, use the NJ COVID-19 Business Support Eligibility Wizard.

NJEDA will guarantee up to 80% of the total investment amount, not to exceed $200,000 per NJ entrepreneurial company.

In addition to the criteria below, please review the full program specifications approved by the NJEDA Board.

Required documents from Investor…

1. Executed Security purchase agreement for the investment prior to 3/9/2020 (Stock Purchase Agreement, Promissory Note, SAFE Note) /Document must be signed and dated

2. Evidence of cash transfer for the Prior Investment:

  • Transfer of Funds from Investor to Company- Cancelled Checks, Wire Transfer, Bank Statement
  • Must clearly show the name of the investor (which matches the applicant), the name of the financial institution, and the name of the entrepreneurial business.

3. Documentation for Investment seeking guarantee which may be one of the following:

  • If investment has already closed – executed Convertible Note / Promissory Note/Must Clearly show the name of the investor, the entrepreneurial business and be dated
  • If the transaction has not yet closed – draft promissory note / Term Sheet. The Term Sheet must include name of the investor and proposed investment amount. An executed note will be required post approval but prior to the execution of the Guarantee agreement

4. The Qualified Current financing seeking the guarantee must evidence the following terms:

  • Unsecured
  • At least a one-year maturity
  • Must NOT have any current payments (principal or interest) for at least one year.

5. Evidence of cash transfer for the Qualified Investment Note for which the guarantee is sought (from the investor side of the transaction – if completed)

  • Required at application if the note was executed prior to the application submission date. Must clearly show the name of the investor (which matches the applicant), the name of the financial institution / bank and , the date of the transaction
  • Required evidence of cash transfer/ post approval but prior to execution of the guarantee agreement if there is a term sheet at time of application detailing items 5.a.i ,ii, and iii above
  • Investor Certification (EDA form document – link to the document is available in the online application)

Required documents from the Entrepreneurial Business…

1. CEO Certification (EDA form document – link to the document is available in the online application)

2. Employment verification documents at 12/31/2019

  • NJ WR30 or W3
  • Federal 941
  • Or - PEO letter (if applicable) – which must include total employees and NJ employees at 12/31/19

3. Income statement for trailing-twelve months.

  • Management prepared income statement is acceptable
  • Must include date when the income state is as of

4. CAP Table

  • Signed by the CEO
  • Dated as of 3/9/20 or later
  • Reflects the Investor’s “prior investment” before 3/9/20

5. Evidence of the investment from the applicant investor prior to 3/9/2020 (aka Prior Investment) - Bank statement must show:

  • Bank statement must show the name of the entrepreneurial company
  • Bank statement must show the name of the bank
  • Bank statement must show the date of the “prior investment”
  • and include a wire or deposit which matches the original investment amount.

6. If the financing seeking the guarantee has closed – evidence of the investment for which the guarantee is being sought will be required

  • Bank statement must show the name of the entrepreneurial company
  • Bank statement must show the name of the bank
  • Bank statement must show the date of the transaction for which the guarantee is being sought
  • and include a wire or deposit which matches the original investment amount

7. Narrative Description of the Company

8. Current Tax Clearance certificate. (Please see instructions below)

How to Use Premier Business Services to Obtain Certification

If you aren’t registered with Premier Business Services, visit the Premier Business Services portal and select New Users Only Create an Account and follow instructions. View detailed instructions

If you are already registered with Premier Business Services, log in. Go to the Tax & Revenue Center. From there, select Business Incentive Tax Clearance. If your account is compliant with its tax obligations and no liabilities exist, the Business Incentive Tax Clearance can be printed directly through the portal.

Questions regarding your account may be directed to 609-292-9292 or via email to Premier Services Registration at Integrated-Registration.Admin@treas.nj.gov.

In case of any challenges with securing a clearance after successfully creating an account and logging in to the Premier Business Services Portal, please contact the Tax Clearance teams support at 609-292-5503 or BusinessAssistanceTC.Taxation@treas.nj.gov.

Updated: May 13, 2020
Source: NJEDA

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