By: Jeffrey Hall
Late Tuesday, Tim Sullivan, CEO of the New Jersey Economic Development Authority (“EDA”), presided over a webinar which outlined several programs the EDA has cobbled together in response to the COVID-19 crisis and its impact on New Jersey small businesses and non-profits. For more information on the announcement of these programs, see our blog on the NJEDA Emergency Response Programs. One program in particular New Jersey businesses should pay immediate attention to is EDA’s grant program, as the EDA will take grant applications starting at 9 a.m. on Friday, April 3rd, for one week.
Mr. Sullivan provided an overview on five programs which will be briefly outlined in this entry. They are:
- Small Business Emergency Assistance Grant Program. As mentioned the time period to apply for these grants will commence April 3rd and run through April 10th. It is important that each business that applies has its NAICS code. For more information, see https://cv.business.nj.gov.
- Small Business Emergency Assistance Loan Program. The EDA will be offering working capital loans up to $100,000. The amount of funding available for this program is $5,000,000. This program will be available after the grant program is rolled out. Much of the information an applicant will need for this program will be the same as for the grant program.
- The CDFI First Loss Reserve Fund. This is a program participated in by community development financial institutions. Sullivan predicts that $10,000,000 will be in the first wave of financing. This fund will offer working capital loans up to $75,000 per applicant. The EDA will administer this program even though CDFIs are not part of the EDA.
- Emergency Assistance Guarantee Loans. This is an EDA program administered through its premier lender banks or premier CDFIs. $10,000,000 will be available under this program.
- Entrepreneur Support Program. EDA’s CEO indicated that $5,000,000 will be available in the initial wave. The entrepreneur program provides 80% loan guarantees for working capital loans to start ups. This program is on the smallest scale of the five programs announced by Mr. Sullivan.
The goal of these programs is to get funding to the market quickly; leverage resources; and provide offerings to meet the need of the marketplace. There is also technical assistance available for applicants seeking SBA support. For more information, visit the NJ government website.
Jeffrey Hall is of counsel with the Lawrenceville, NJ law firm of Szaferman, Lakind. He can be reached at 609-275-0400 or via email at jhall@szaferman.com.
For additional COVID-19 related resources and articles visit our COVID-19 Resource Center.
The foregoing is intended for general information purposes and is no substitute for specific legal advice.
