As previously posted in our May 16th alert, the New Jersey Economic Development Authority (“NJEDA”) announced an additional $50 million from the federal government to replenish the New Jersey Small Business Assistance Grant program that was established to help those small businesses impacted by COVID-19.
On May 22, the NJEDA board voted to expand the program to provide grants up to $10,000 to qualified businesses and expand eligibility requirements. Additionally, the NJEDA voted to reserve $15 million for businesses in Opportunity Zones.
The NJEDA will reserve $5 million to fund those businesses that were waitlisted from the first round of the program back in April. Applicants from the first round are encouraged to apply for this second round of funding as well.
- Increasing the employee cap for business from 10 full time employees to 25 full time employees;
- Home-based businesses and sole proprietorships are now eligible to receive the grants; and
- Elimination of NAICCScode restrictions, that will make nearly all small businesses eligible.
The applicant must certify that:
- The applicant was in operation on February 15, 2020;
- The applicant business has been negatively impacted by COVID-19; and
- The applicant will make best efforts not to furlough or layoff employees.
Applicant will also be required to fill out an affidavit identifying all other previous COVID-19 related funding.
The NJEDA is expected to release the application for the grant program soon. Please check back for more updates.