As another way to assist small businesses in New Jersey impacted by the COVID-19 outbreak, the New Jersey Economic Development Authority (NJEDA) has created the Small Business Emergency Assistance Loan Program. The program will provide direct low-cost loans of up to $100,000 to eligible New Jersey small business and non-profits.
Applications are targeted to be opened during the week of April 5th on a first-come, first-served basis and there are no application fees. The streamlined application process will be completed online at cv.business.nj.gov. and the NJDEA anticipates that complete applications will be processed in about a week.
The low-cost, flexible terms include 10-year term and amortization, zero percent (0%) interest rate for the first 5 years and the NJDEA’s prevailing interest rate (capped at 3.0%) from years 6 through 10, and deferred repayments for 12 months.
The eligibility requirements for this loan program include that the organization: (a) has a physical commercial location (not a home-based office) in New Jersey; (b) has been in existence at least one (1) year; (c) has less than five million dollars ($5,000,000) in annual revenue; (d) can show a global debt service coverage ratio of 1.0 as of December 31, 2019; (e) is able to demonstrate negative impact related to COVID-19 on or after March 9, 2020; and (f) is registered to do business and in good standing in New Jersey and in good standing with the Department of Labor and Workforce Development. Also, the CEO must certify that the business will make its best efforts not lay off employees or will rehires employees as soon as possible. Certain types of businesses (such as gaming, adult, and a few others) are specifically not eligible for the program.
If you or your company have questions about the Small Business Emergency Loan Assistance Program, please contact attorney Rich Israel at email@example.com.