The NJ Entrepreneurship Guarantee 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 investment must have been made after the date of emergency (March 9, 2020, as per the Governor’s Executive Order 103). This program will be retroactive to that date.
Applications will be accepted in the coming weeks. 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.
The eligibility requirements for the startup and the investor are as follows:
The entrepreneurial business must:
- Have a minimum of 50% of employees in NJ
- Have less than 25 total employees at the time of application
- Have under $5 million in revenues
- Have corporate headquarters in New Jersey (including at least one C suite member with a principal office in New Jersey)
- Fall under one of the eight sectors outlined in Governor Murphy’s economic plan (advanced manufacturing, information/technology, life sciences, finance and insurance, clean energy, food and beverage, advanced transportation, food and beverage, film and digital media)
- Be registered to do business in NJ and must certify that the company is in good tax standing with the State
- Be in good standing with the Department of Labor and Workforce Development
- Investors can include, but are not limited to, individuals, trusts, and corporations
- Investors must already have equity interest and equity position in the company
- Qualified investors are not required to be New Jersey residents
Applications will be accepted in the coming weeks. Completed applications will be considered on a first come, first serve rolling basis.
Check back here for more information over the next week.
Updated: March 28, 2020