The New Jersey Economic Development Authority (NJEDA) recently announced the second phase of its Small Business Emergency Assistance Loan Program, which will provide $10 million to New Jersey small businesses and nonprofits impacted by the COVID-19 pandemic. Any business that intends to apply for a loan must first pre-register during the pre-registration period, which will run from 9:00 AM on Wednesday, February 10th through 5:00 PM on Monday, February 22nd. Only businesses that pre-register will be able to complete a loan application when the application window opens on Wednesday, February 24th at 9:00 AM. It is suggested that any applicants who wish to participate in the program submit their applications as early as possible since completed applications are considered on a first-come, first-served basis.
Similar to the first phase of the program, the second phase of the program will also provide ten-year loans up to $100,000 with a zero percent interest rate for the first five years and a maximum interest rate of 3% for the remaining five years. The funding can be used to pay rent or mortgage, payroll, and/or utilities. It can also be used to purchase inventory, personal protective equipment (PPE), or COVID-related inventory, furniture, fixtures, or equipment. Eligible businesses are those that meet all of the following requirements:
- Have $5 million or less in annual revenue
- Have a physical commercial location in New Jersey
- Have been in existence and in operation since February 24, 2020
- Are registered to do business in New Jersey
- Are in good standing with the New Jersey Departments of Labor and Taxation
- Are able to demonstrate that they have been negatively impacted by the COVID-19 outbreak
Although program applications will be reviewed on a first-come, first-served basis, priority will be given to applicants who have received no more than $10,000 in government assistance from any federal, state, or local assistance program in connection with the COVID-19 pandemic. Additionally, $3.5 million of the total funding will be reserved for businesses in Opportunity Zone-eligible census tracts.
Additional information on the program can be accessed here. A sample of the Small Business Emergency Assistance Loan Program pre-registration can be found here.