Small Businesses

NJEDA Announces Opening Date for the Small Business Emergency Assistance Loan Program

In an effort to provide additional economic relief to qualifying businesses and IRC Sec. 501(c) non-profit entities, the New Jersey Economic Development Authority (NJEDA) will open the Phase 2 pre-registration portal for its Small Business Emergency Assistance Loan Program at 9:00 A.M. on Wednesday, February 10, 2021.  Applicants are required to pre-register in order to be considered for inclusion.  This $10 million loan program will provide financing up to $100,000 for qualifying borrowers to spend on payroll, rent and/or mortgage payments, inventory, utilities, personal protective equipment and certain types of furniture, fixtures and equipment.

Interested borrowers should note that the $100,000 threshold is cumulative between Phase 1 and Phase 2.  While home-based businesses and real estate holding companies, as well as gambling/gaming businesses and purveyors of “adult” activities (amongst others) are ineligible, applicants must have a New Jersey based commercial location, along with $5 million or less in annual revenues.  Additional eligibility criteria exists, including good standing with the state’s Department of Labor and Workforce Development, as well as certification that the applicant has no tax debts due to New Jersey.  Applicants will also be required to explain how they were negatively impacted by the COVID-19 pandemic.

Designed to provide low-cost, flexible financing, the 10-year amortizable note will carry a 0% interest rate for years 1-5, followed by the NJEDA’s prevailing interest rate floor (capped at 3%) for the remaining 6-10 years.  Principal payments can be deferred for 12 months (with a possible extension to 18 months).  Additional FAQs on the program can be located here.

Sax will continue to update you as further details are made available.  Reach out to your Sax advisor or email [email protected] with questions.  For more and on-going information relative to your state and business, visit Sax’s COVID-19 Resource Center.

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