Updated: June 9, 2021
The pre-registration and application for the Small Business Emergency Assistance Loan Program (Phase 2) are currently under development. The pre-registration is expected to be available in July 2021. Please continue to check this page for further updates on timing.
The Small Business Emergency Assistance Loan Program provides direct low-cost financing of up to $100,000 to New Jersey-based businesses and nonprofits that have been negatively impacted by the COVID-19 pandemic.
Eligibility:
All businesses and nonprofits must meet the following baseline eligibility requirements:
- A physical commercial location in the State of New Jersey.
- In existence by the date of application launch.
- $10 million or less in annual revenue.
- Registered to do business in the State of New Jersey at time of application.
- No tax debts due to the State.
- 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.
Businesses that meet these baseline eligibility requirements will be sorted into Stage 1 and Stage 2 applicants.
- Stage1 applicants must have acquired at least 500 square feet of additional space by executing a new lease, leasing additional space, or acquiring an owner-occupied commercial space on or after January 1, 2021.
- Stage2 applicants are those that do not meet the new lease, additional leased space or acquired owner-occupied commercial space criteria. Stage 2 applicants that meet the baseline eligibility requirements above ARE eligible for financing.
The following types of businesses ARE NOT eligible:
- Home-based businesses. A home-based business is a business operated out of a residential property not zoned for commercial activity.
- Real estate holding companies.
- Businesses related to gambling or gaming activities.
- Businesses 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 sales.
- Traveling merchants.
- Christmas tree sales or other outdoor storage.
- Any other activity constituting a nuisance.
- Businesses that are illegal under the laws of the State of New Jersey.
Available Funding and Eligible Funding Uses:
Businesses and nonprofits may apply for loans of up to $100,000.
The State has allocated a total of $10 million for the Small Business Emergency Assistance Grant Program (Phase 2). In line with Governor Murphy’s commitment to building a stronger, fairer New Jersey, $3.5 million will be reserved for entities located in one of the 715 census tracts that was eligible to be designated as an Opportunity Zone.
Eligible Expenses:
*Financing can only be used for expenses incurred on or after August 3, 2021.
- Inventory
- Rent/Mortgage
- Payroll
- Utilities
- Personal protective equipment
- Furniture, fixtures, or equipment that do not require professional installation costs in excess of $1,999.00
The following are NOT eligible uses of Phase 2 Loan funding:
- Operating expenses incurred prior to August 3, 2021
- Refinancing of existing debt
- Personal, non-business obligations or costs incurred by related entities
- Construction-related expenses or contracts
- Furniture, fixtures or equipment requiring professional installation costs in excess of $1,999.00
Interest Rate & Terms:
The Small Business Emergency Assistance Loan Program is structured specifically for entities facing economic challenges due to the COVID-19 pandemic. Financing received through the program is subject to low-cost and flexible terms, including:
- 10-year term and amortization
- 0% interest rate
- Deferred repayments for 24 months
There are no fees associated with the Small Business Emergency Loan Program for the first five years of the loan. After five years, the NJEDA’s standard modification fees will apply, if applicable.
Process to Pre-Register and Apply:
The pre-registration and application for the Small Business Emergency Assistance Loan Program (Phase 2) is currently under development. Please continue to check this page for further updates on timing.
Step 1: Pre-Register
All businesses and nonprofits that would like to apply for financing through the Small Business Emergency Assistance Loan Program (Phase 2) must first pre-register on the NJEDA’s application portal. Pre-registration is not open at this time, but is anticipated to open in July 2021. The exact date and time of pre-registration will be posted to this page when available, and entities may pre-register at any time during the open pre-registration period, as pre-registration is not first come, first served.
As part of pre-registration, entities will need to provide the following information:
- Contact information for someone who is authorized to speak on behalf of the entity, such as an owner or an executive such as a CEO or Executive Director.
- Full name of the registered legal entity.
- Ownership structure(sole proprietorship, LLC, Non-Profit Organization, etc.).
- 9-digit Employer Identification Number (EIN; Federal Tax ID Number).
- Date the entity was legally formed AND the date the entity began operating (these dates may be different).
- Annual revenue based on most recent business tax filing.
- Total amount of other Federal, State, or county/municipal COVID-19 relief funding.
