COVID-19 Impacts – Other Financial Assistance Available to NJ Entrepreneurs

Eligible small business owners all over the country are busily applying for their Paycheck Protection Program (PPP) loans and for the SBA Economic Injury Disaster Loans (EIDL). Both of these programs were part of the COVID-19 emergency loans for small businesses, now known as the Coronavirus Aid, Relief, and Economic Security Act or CARES Act.

For entrepreneurs and small businesses in New Jersey, there are two other programs through the New Jersey Economic Development Authority (NJEDA), which might also be available to your company and can provide emergency liquidity – Small Business Emergency Assistance Loan Program and also the NJEDA Entrepreneur Guarantee Program.

See below for a summary of each of these programs.

Small Business Emergency Assistance Loan Program

Application Portal Opens: April 13, 2020

Size of the Program: $10 million

Loan Purpose and Amount: Working capital loans of up to $100,000

Eligibility: 

• Company must have less than $5 million in annual revenues
• Company must exhibit negative economic impact from the COVID-19 pandemic         

Terms:        

• Ten-year loan
• 0% interest for first five years
• NJEDA prevailing floor rate for remaining five years with a 3% cap

NJEDA Entrepreneur Guarantee Program

Size of the Program: $5 million

Application Portal Opens: Now

Program: NJEDA provides a guarantee of an investor loan advanced for working capital to an entrepreneurial company impacted by COVID-19

Terms: NJEDA will guarantee up to 80% of the total investment amount not to exceed $200,000 for each company

Eligibility:    

• At least 50% of employees must be in NJ
• Less than 25 total employees
• Less than $5 million in revenues
• Corporate headquarters in NJ

Business sector includes: advanced manufacturing, IT, life sciences, finance and insurance, clean energy, food and beverage, advanced transportation, food and beverage, film and digital media

Investor must already have an equity position in the company           

To Apply

Per the NJEDA web site: If you have one, speak with a Business Development Officer before starting the application process.  If you do not have a Business Development Officer assigned to you, please contact CustomerCare@njeda.com or call 866-534-7789 for assistance and guidance through applicatio