NJEDA to support State businesses

31-March-2020

New Jersey Economic Development Authority Announces New Initiatives to Support Businesses Impacted by COVID-19

TRENTON, N.J. (March 26, 2020) – The New Jersey Economic Development Authority (NJEDA) Board today

 approved a suite of new programs designed to support businesses and workers facing economic hardship 

due to the outbreak of the novel coronavirus COVID-19.
 
The package of initiatives includes a grant program for small businesses, a zero-interest loan program for mid-size

companies, support for private-sector lenders and Community Development Financial Institutions (CDFIs), 

funding for entrepreneurs, and a variety of resources providing technical support and marketplace information.

 Taken together, they will provide more than $75 million of State and private financial support, with the 

opportunity to grow to more than $100 million if additional philanthropic, State, and federal resources become

 available. The initiatives will support between 3,000 and 5,000 small and midsize enterprises and are meant to

 complement recently announced federal economic recovery initiatives.

 
More information about the programs is available here: https://cv.business.nj.gov.
 
“The outbreak of the novel coronavirus in New Jersey has sent us into uncharted territory,

 and the economic impacts will be significant and far-reaching, especially on Main Street. 

The scope and scale of this new challenge requires immediate action to support New Jersey 

workers and businesses,” said Governor Phil Murphy. “The new NJEDA programs announced

 today are a critical step that will mitigate the economic impacts of this unprecedented 

challenge and help workers and businesses to weather the storm and come out stronger 

when things return to normal.”
 
Development of the grant program, support for CDFIs, and flexibility for current NJEDA

borrowers was enabled by the legislature through A3845. Primary sponsors of the legislation

include Assemblymembers Roy Freiman, Louis D. Greenwald, Ronald S. Dancer, and 

Senators Nilsa Cruz-Perez, and Brian Stack.
 
The new NJEDA initiatives focus on businesses that have been hit hardest by the 

novel coronavirus outbreak: local small businesses, mid-size businesses that have had to

close or drastically reconfigure operations, and new businesses who were just getting on

their feet before the crisis hit. The programs provide a suite of compatible offerings that

address these businesses’ varied needs and include mechanisms to provide funding 

and assistance as quickly as possible.
 
Many of the 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 the NJEDA’s small business grant program should reach out to:

 donations@njeda.com.
 
“Small- and medium-sized enterprises are the heartbeat of New Jersey’s economy and it is 

crucial that we do what we can to provide the resources and assistance they need to

 withstand the outbreak of novel coronavirus,” said NJEDA Chief Executive Officer

 Tim Sullivan. “In coordination with our partners throughout State government, we are

 undertaking an unprecedented effort to support these businesses and the New Jersey

 residents who rely on them for their livelihoods. These are challenging times, but New 

Jerseyans are resilient, and together we will get through this and rebuild our economy.”
 
The suite of new initiatives includes:

Small Business Emergency Assistance Grant Program – A $5 million program that

 will provide grants 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

 furloughs.

Small Business Emergency Assistance Loan Program – A $10 million program that 

will provide working capital loans of up to $100,000 to businesses with less than $5 million in

 revenues. Loans made through the program will have ten-year terms with zero percent for 

the first five years, then resetting to the EDA’s prevailing floor rate (capped at 3.00%) for 

the remaining five years.

Community Development Finance Institution (CDFI) Emergency Loan Loss

 Reserve Fund – A $10 million capital reserve fund to take a first loss position on CDFI

 loans that provide low interest working capital to micro businesses. This will allow CDFIs

 to withstand loan defaults due to the outbreak, which will allow them to provide more loans

 at lower interest rates to microbusinesses affected by the outbreak.

CDFI Emergency Assistance Grant Program – A $1.25 million program that will

 provide grants of up to $250,000 to CDFIs to scale operations or reduce interest rates for

 the duration of the outbreak.

NJ Entrepreneur Support Program – A $5 million program that will encourage

 continued capital flows to new companies, often in the innovation economy, and temporarily

 support a shaky market by providing 80 percent loan guarantees for working capital loans

 to entrepreneurs.   

Small Business Emergency Assistance Guarantee Program – A $10 million program
 that 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.

Emergency Technical Assistance Program – 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.
 
Additional details on the NJEDA’s new programs, including complete eligibility requirements

 are available here: https://cv.business.nj.gov. Comprehensive information about 

New Jersey’s response to the novel coronavirus outbreak is available 

here: https://covid19.nj.gov/.
 
 
About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal 

agency for driving economic growth. The NJEDA is committed to making New Jersey a

 national model for inclusive and sustainable economic development by focusing on key

 strategies to help build strong and dynamic communities, create good jobs for New Jersey

 residents, and provide pathways to a stronger and fairer economy. Through partnerships 

with a diverse range of stakeholders, the NJEDA creates and implements initiatives to

 enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
 
To learn more about NJEDA resources for businesses call NJEDA Customer Care

 at 609-858-6767 or visit https://www.njeda.com and follow @NewJerseyEDA on Facebook, Twitter, and LinkedIn.