The New Jersey Economic Development Authority (NJEDA) recently announced that applications for the expanded Small Business Emergency Assistance Grant Program will be available on Tuesday, June 9th at 9:00 AM, and will be processed on a first-come, first-served basis. The $45 million program will provide grants up to $10,000 to small businesses that have been negatively impacted by the coronavirus pandemic. The funding received may be used for reimbursement of lost revenue as a result of business interruption as a result of COVID-19. The funding cannot be utilized for capital expenses.
To mitigate the economic impacts of the mandated closure of non-essential businesses, the NJEDA created the Small Business Emergency Assistance Grant Program. During the first phase of the program, the NJEDA provided more than $8 million in grants to nearly 2,500 businesses across the state.
The NJEDA received $50 million from the federal Coronavirus Relief Fund established under the Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act to support small businesses. The NJEDA will provide an additional $5 million to fund businesses that were waitlisted during the program’s first phase. The NJEDA will use the remaining $45 million to fund the second phase of the program, which will provide grants to a significantly broader range of businesses than were previously eligible. Changes to eligibility for the second phase of the program include:
- Increased employee cap of 25 full-time employees (up from 10 FTEs during the first phase)
- Removal of NAICS code restriction
- Inclusion of home-based businesses and sole proprietorships who were previously ineligible