NJ Is Giving Out $200M To Help Small Businesses Survive COVID

NEW JERSEY — Small business owners and nonprofits in New Jersey may be eligible for up to $20,000 in state grants that can help them survive the coronavirus pandemic.

The New Jersey Economic Development Authority (NJEDA) has reopened pre-registration for Phase 4 of its small business emergency assistance grant program, the agency announced Wednesday (see how to apply below).

Gov. Phil Murphy recently announced the allocation of $200 million in additional funds to help fulfill Phase 4 grant applications. Small business owners and nonprofits that have not previously applied for Phase 4 grants may pre-register as a preliminary step toward applying for grants of up to $20,000.

According to the NJEDA, the $200 million in additional funds will continue to support the “most adversely affected businesses in New Jersey.” That includes:

• $20 million for bars and restaurants
• $120 million for micro-businesses
• $10 million for child care providers
• $50 million for other small businesses and nonprofits with up to 50 full-time equivalent employees

To ensure grants reach businesses in the hardest-hit communities, including communities of color, the NJEDA has assigned one-third of the funding to businesses located within the 715 census tracts designated as an “opportunity zone,” officials said.

Since launching the program in April of 2020, the NJEDA has distributed more than $259 million in aid to some 55,000 businesses across the state.

“We’ve seen tens of thousands of small business owners in New Jersey benefit from this grant program,” NJEDA Chief Executive Officer Tim Sullivan said, adding that the new wave of funds will help many more businesses in the sate to “keep their doors open.”

HOW TO APPLY

Here’s how it works, the NJEDA said:

“Interested business owners and nonprofits will need to pre-register here to access the application. Pre-registration reopened today, Wednesday, May 26 at 9 a.m., and will remain open for five weeks, until Wednesday, June 30 at 5 p.m.”

Applications will become available following the pre-registration period, as pre-registered applicants will be asked to return to https://programs.njeda.com/en-US/ to complete an application based on the following schedule:

• Restaurants (Food Services and Drinking Places, NAICS begins with 722), Child Care Providers (NAICS code 624410) and Small Business (6 more Full Time Equivalent Employees): July 7 at 9 a.m.
• Micro Business (5 or Less Full Time Equivalent Employees): July 8 at 9 a.m.

Applications will remain open through July 15 at 5 p.m. and will be accepted on a first-come, first-served basis. Applicants must complete the full application to be considered for grant funding.

Grant awards will be calculated based on the number of full-time equivalent employees (FTEs) businesses employ: Micro-businesses with five or fewer FTEs and sole proprietorships will receive up to $10,000; businesses with six to 25 FTEs will receive up to $15,000; and businesses with 26 to 50 FTEs will receive up to $20,000. A grant size estimator is available here.

NJEDA officials added:

“Small businesses and nonprofits will need to show they have been negatively impacted during the declared state of emergency to be eligible for this grant. This includes businesses that have been temporarily shut down, have been required to reduce hours, have had at least a 20 percent drop in revenue, have been materially impacted by employees who cannot work due to the outbreak, or have a supply chain that has materially been disrupted and therefore slowed firm-level production during the pandemic.”

The NJEDA will continue to provide the online pre-registration and application in English and Spanish, offering applicants access to interpretation services to support speakers of 10 additional languages: Arabic, Chinese (Mandarin and Cantonese), Gujarati, Hindi, Italian, Korean, Polish, Portuguese and Tagalog.

In addition to the small business emergency assistance grant program, the NJEDA administers a variety of technical assistance and low-cost financing programs for small and mid-sized businesses impacted by COVID-19. Businesses and nonprofits can use the Eligibility Wizard to identify which emergency assistance programs they may want to consider for their business’s specific needs. More information about these programs and other state support is available at https://business.nj.gov/covid, or by calling 844-965-1125.

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