COVID-19 Impacts – Other Financial Assistance Available to NJ Entrepreneurs
- Apr 9, 2020
- Alan Wink
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.
Application Portal Opens: April 13, 2020
Size of the Program: $10 million
Loan Purpose and Amount: Working capital loans of up to $100,000
- Company must have less than $5 million in annual revenues
- Company must exhibit negative economic impact from the COVID-19 pandemic
- Ten-year loan
- 0% interest for first five years
- NJEDA prevailing floor rate for remaining five years with a 3% cap
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
- 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
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
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Mr. Wink assists clients with capital budgeting, capital structuring and capital sourcing. He has worked with many tech and life science companies on developing the appropriate capital structure for their position in the business life cycle.
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