Applications Will Open on June 9 for Phase 2 of the NJEDA's Emergency Grant Program
Last updated June 4, 2020
The New Jersey Economic Development Authority (the “NJEDA”) has announced that applications will open at 9 a.m. on Tuesday, June 9, for Phase 2 of its Small Business Emergency Assistance Grant Program. Interest in this grant program is expected to be very high. Phase 1 of the program was oversubscribed within an hour on the day that applications opened, and the NJEDA expects a similar response for Phase 2.
Applications for Phase 2 will be processed on a first-come, first-served basis. Applicants should review the application form ahead of time and gather the information necessary to be ready to submit the application on June 9. Links to the sample application, including answers to frequently asked questions, in a variety of languages, can be found here. The “live” application on June 9 will be available in English and Spanish, on this website.
As discussed in our prior Alert, Phase 2 offers larger grants (up to $10,000) and expanded eligibility to New Jersey’s small businesses, home-based businesses, sole proprietorships, and 501(c)(3), 501(c)(4), and 501(c)(7) nonprofit organizations.
Highlights of Phase 2 include:
Applicants cannot have more than 25 full-time employees, as reported on their most recent WR-30 filing with the New Jersey Department of Labor and Workforce Development.
Grant amounts will be calculated at $1,000 per full-time equivalent employee, with a maximum grant award of $10,000 (for applicants with 10 or more full-time employees).
Sole proprietorships and other entities with no full-time employees will be eligible for $1,000 grants.
Eligible applicants that applied in Phase 1 but did not receive funding, or that received funding in Phase 1 but may be eligible for additional funding based on their number of employees, should submit new applications in Phase 2 to be considered for Phase 2 funding.
Grant funds must be used for operating expenses, such as short-term, immediate payroll and working capital support. Grant funds cannot be used for capital expenditures, including construction.
Each grant applicant will be required to certify that: it was in operation on February 15, 2020, it will make a best effort not to furlough or lay off any employees from the time of application through six months after the end of New Jersey’s COVID-19 declared state of emergency (or a best-effort pledge to rehire furloughed workers as soon as possible), it has been negatively impacted by the declared state of emergency (e.g., it has been temporarily shut down, has been required to reduce hours, has had at least a 20% drop in revenue, has been materially impacted by employees who cannot work due to the outbreak, or has a supply chain disruption that has slowed production), and it has a material financial need that cannot be overcome without the grant of emergency relief funds (e.g., it does not have significant cash reserves that can support the business during this period of economic disruption).
Applicants must be registered to do business in New Jersey, must be in good standing with the New Jersey Department of Labor and Workforce Development, and cannot have any outstanding tax liabilities due to the State of New Jersey.
Applicants will be required to disclose any other funding received relating to COVID-19, including Small Business Administration loans and grants, forgivable portions of CARES Act Paycheck Protection Program loans, and federal Economic Injury Disaster grants.
Phase 2 funding comes from the federal CARES Act. Therefore, additional eligibility requirements may apply, based on applicable federal requirements.
Phase 2 is funded with $45 million, of which $15 million is reserved for applicants that are qualified businesses operating in Opportunity Zone-eligible census tracts.
CSG will continue to provide updates on state and federal funding programs. If you have any questions regarding any federal or state economic assistance programs, please reach out to your CSG attorney.
For additional information pertaining to the coronavirus outbreak, please visit CSG's COVID-19 Resource Center.
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