On July 23, 2020, New Jersey Governor Phil Murphy announced that New Jersey will offer a new relief program for New Jersey businesses impacted by the COVID-19 pandemic titled the Small Business Lease – Emergency Assistance Grant Program (the “SBL-EAGP”), which will be overseen by the New Jersey Redevelopment Authority (the “NJRA”).
The SBL-EAGP will allow select businesses to apply for grants of up to Ten Thousand and 00/100 Dollars ($10,000.00) for leasing costs. The grants will only be available in sixty-four (64) eligible municipalities, which include Atlantic City, Camden, Hackensack, Hoboken, Jersey City, Newark, and Trenton. An aggregate Six Million and 00/100 Dollars ($6,000,000.00) in CARES Act funding is being allocated to the SBL-EAGP, with funds being distributed on a first come first served basis. Assuming that each SBL-EAGP application is fully funded the maximum Ten Thousand and 00/100 Dollars ($10,000.00), no more than Six Hundred (600) applications will be accepted for the SBL-EAGP.
The NJRA has indicated that the grants will be targeted towards tenants leasing Five Thousand (5,000) square feet of leased space or less and will be available for:
The SBL-EAGP application period will open on August 10, 2020.
Although the program may appear only to benefit tenants, the SBL-EAGP will also assist landlords. By awarding grants intended to cover leasing costs, the grant funds should eventually be paid by the tenant to the landlord to cover rent, which means that it is in both the landlord’s and tenant’s interests to have the tenant aggressively pursue the SBL-EAGP.
If you have further questions about the SBL-EAGP and the application process or other questions about leasing, contact real estate attorney Michael J. Haviland at 856-354-7700 or 215-963-9520 or send us a message. Our experienced real estate team at Earp Cohn P.C. can help you navigate the process and make sure your interests are well represented.