Responding to the impact on small businesses by the COVID-19 containment measures, the New Jersey Economic Development Authority (NJEDA) has created the Small Business Emergency Assistance Grant Program. The program will provide up to $5,000 to eligible New Jersey small and medium sized businesses (SMEs); as grants – not loans – the SME does not have to repay the funds so long as the program’s requirements are followed. Applications be opened on Friday, April 3rd at 9 a.m. and will close on Friday, April 10th at 9 a.m. and will be considered on a first-come, first-served basis. There are no application fees. Applications are to be made online at cv.business.nj.gov. The NJDEA anticipates that applications will be processed within two (2) business days and that grant payments will be funded through EFT payments around two (2) weeks after an approved applicant provides its banking information and confirms its agreement with the terms of the grant.
Eligible SME’s must have between 1 and 10 full time equivalent employees (FTEs) and the grant money must be used to support working capital and payroll, not any capital expenses. Grant values are calculated at $1,000 per FTE. Other eligibility requirements include that: (a) the FTEs be W-2 employees (not 1099 workers), (b) the SME has a physical commercial location (not a home-based office) in New Jersey, (c) the SME is classified as Retail (NAICS codes starting with 42 or 43), accommodation or food services (NAICS codes starting with 72), Arts, Entertainment or Recreation (NAICS codes starting with 71), or Other Services (NAICS codes starting with 811 or 812); (d) the SME is registered to do business and in good standing in New Jersey and in good standing with the Department of Labor and Workforce Development. Certain types of businesses (such as gaming, adult, and a few others) are specifically not eligible for the program.
Further, the CEO of the SME must certify that the business will make its best efforts not lay off or furlough individuals from the time of the application through six months after the end of the state of emergency and to make best efforts to rehire previously furloughed or laid off individuals, has been negatively impacted by the state of emergency and has a material need for the funding,
If you or your company have questions about the Small Business Emergency Assistance Grant Program, please contact attorney Rich Israel at email@example.com.