Loan application

NJEDA Small Business Loan Application Goes Live April 13 | Business









A New Jersey Economic Development Authority grant program to help small businesses affected by COVID-19 received 26,000 grant applications and was almost immediately oversubscribed.

The response shocked NJEDA on April 3, as the companies claimed the available $5 million almost as soon as it became available. The application, however, remains open until Friday, April 10, and the NJEDA encourages companies that have not applied to do so. Submitting an application will ensure that the applicant would be eligible should additional funds become available for this round of grants.

The program provides grants of up to $5,000 to small businesses in retail, arts, entertainment, recreation, accommodation, food service and other services, such as repair, maintenance, personal and laundry services, to stabilize their operations and reduce the need for layoffs. or leave.

the application for $10 million small business loan program now live.

The NJEDA Board of Directors approved grants and other new programs on March 26 to support businesses and workers facing economic hardship due to the novel coronavirus COVID-19 outbreak.

Initiatives include a zero-interest loan program for mid-sized businesses, support for private sector lenders and community development financial institutions, financing for entrepreneurs, and a variety of resources providing technical support and information on the market. NJEDA said the initiatives will support between 3,000 and 5,000 small and medium-sized businesses and are intended to complement recently announced federal economic stimulus initiatives.

NJEDA’s new initiatives focus on businesses that have been hardest hit by the novel coronavirus outbreak: small, local businesses, mid-sized businesses that have had to shut down or radically reconfigure their operations, and new businesses that are starting up. just getting on their feet before the crisis hits. The programs offer a suite of compatible offerings that meet the varied needs of these businesses and include mechanisms to provide financing and assistance as quickly as possible.

Many resources are designed to be scalable with the addition of federal and philanthropic resources if they become available. Philanthropic partners interested in donating to support NJEDA’s Small Business Grants Program can email [email protected]

The remaining initiatives include:

A $10 million small business emergency loan program that will provide working capital loans of up to $100,000 to businesses with revenues under $5 million. Loans under the program will have tenors of 10 years with zero percent for the first five years, then reset to the prevailing EDA floor rate (capped at 3.00%) for the remaining five years.

A community development finance institution’s $10 million emergency loan loss reserve fund to take a first-loss position on CDFI loans that provide low-interest working capital to micro -companies. This will enable CDFIs to withstand defaults due to the outbreak, which will enable them to provide more loans at lower interest rates to microenterprises affected by the outbreak.

A $1.25 million CDFI Emergency Relief Grant program that will provide grants of up to $250,000 to CDFIs to expand operations or reduce interest rates for the duration of the outbreak.

A $5 million NJ Entrepreneur Support Program that will encourage continued capital flows to new businesses, often in the innovation economy, and temporarily support an unstable market by providing 80% loan guarantees % for working capital loans to entrepreneurs.

A $10 million small business emergency relief guarantee program that will provide 50% guarantees on working capital loans and waive fees on loans made through institutions participating in the programs NJEDA’s existing Premier Lender or Premier CDFI.

A $150,000 emergency technical assistance program that will support technical assistance to New Jersey-based businesses requesting assistance through the US Small Business Administration. Contracted organizations will be paid based on SBA application submissions supported by the technical assistance they provide.

For more information about NJEDA resources, call (609) 858-6767.

For details on eligibility for NJEDA programs, go online to cv.business.nj.gov.