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Thursday, March 26, 2020


 
NJEDA Approves Assistance Programs for
´╗┐Some Businesses affected by COVID-19
On March 26, the New Jersey Economic Development Authority (NJEDA) Board of Directors voted on measures to provide business assistance for a variety of businesses affected by COVID-19. The Board unanimously approved a small business grant and a small business loan program, as well as programs to mobilize private sector and non-profit capital to support micro-, small and medium-sized businesses during the COVID-19 outbreak.

NJEDA’s hope is to have the applications open for businesses to apply by early next week. As always, the CCSNJ will keep you posted one the online application portal is live. Additional details on the NJEDA’s new programs, including eligibility requirements will be available here shortly: https://cv.business.nj.gov.

Below is a full listing of the items the Board approved:

  • The creation of the Small Business Emergency Assistance Grant Program, with up to $5 million to fund the program, and delegations to staff to administer the program. Companies with less than ten employees will be eligible and targeted industries include retail, food service, and entertainment. Businesses will be eligible for $1000 per employee up to $5000. Businesses must certify that they have a commercial location in New Jersey, and that they have been negatively impacted, by COVID-19 including but not limited to closing, reduction of hours, or loss of employees.

  • The creation of the Small Business Emergency Assistance Loan Program, with up to $10 million to fund the program, and delegations to staff to administer the program. Small businesses and nonprofits with $5 million in revenue or less will be eligible. The program will provide up to $100,000 with 0 percent interest for the first five years, then resetting to the EDA’s prevailing floor rate (capped at 3percent) for the remaining five years. Businesses must certify that they have a commercial location in New Jersey, and that they have been negatively impacted, by COVID-19 including but not limited to closing, reduction of hours, or loss of employees.

  • The creation of the Community Development Finance Institution (CDFI) Emergency Assistance Grant Program with up to $1.25 million to fund the program and delegations to staff to administer the program. The pilot grant program will provide $250,000 to CDFI’s that work with micro and small businesses. 

  • The creation of the Community Development Finance Institution (CDFI) Emergency Loan Loss Reserve Fund with up to $10 million to fund the program and delegations to staff to administer the program. This program will assist CDFI’s in providing micro and small businesses loans. Loans offered cannot exceed 5 years and rates must be lower than 3.5 percent.

  • The creation of the Small Business Emergency Assistance Guarantee Program with up to $10 million to fund the program and delegations to staff to administer the program. Nonprofits, small and micro businesses with less than $5 million in revenue are eligible. The program will provide 50 percent guarantees on working capital loans and waive fees on loans made through institutions participating in the NJEDA’s existing Premier Lender or Premier CDFI programs.

  • The creation of the NJ Entrepreneur Support Program, with up to $5 million to fund the program, and delegations to staff to administer the program. provide 50 percent guarantees on working capital loans and waive fees on loans made through institutions participating in the NJEDA’s existing Premier Lender or Premier CDFI programs. Businesses with under 25 employees, less than $5 million in revenue will be eligible.

  • A $150,000 program that will support technical assistance to New Jersey-based companies applying for assistance through the U.S. Small Business Administration. The organizations contracted will be paid based on SBA application submissions supported by the technical assistance they provide.

Family Leave, Disability Benefits and Earned Sick Leave Laws Expanded in Wake of COVID-19
On March 25, Governor Phil Murphy signed S2304 (Sweeney/Sumter) into law, which would expand the State’s Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs to provide more workers with access to paid leave benefits during public health emergencies.

S-2304 expands the law’s definition of a “serious health condition” to allow individuals access to Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) benefits during a public health emergency if they must take time off because they are diagnosed with, or suspected of exposure to a communicable disease. It also allows an individual to take care of a family member diagnosed with or suspected of exposure to a communicable disease.

The bill also expands New Jersey’s Earned Sick Leave law, which is provided by the employer not the state, to permit the use of earned sick time for isolation or quarantine as a result of suspected exposure to a communicable disease, or to care for a family member under recommended or ordered isolation or quarantine.

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If you have any questions, please contact Hilary Beckett, Manager of Government Affairs, at hbeckett@chambersnj.com.

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