“Governor Murphy has made supporting small businesses a central focus of our state’s response to the COVID-19 crisis, and the NJEDA team has worked tirelessly to support these 20,000 businesses at a time when that help is so badly needed,” said NJEDA Chief Executive Officer Tim Sullivan. “The economic impact of this pandemic is extraordinary and ongoing – and our efforts to do all we can to support small businesses must continue as well.”
To date, 19,166 small businesses have been approved for grants worth a total of more than $56,800,000 through the Small Business Emergency Assistance Grant Program. The number of grant recipients will increase as the NJEDA continues to process applications and distribute grants. The average grant award has been roughly $3,000, which indicates the average approved business has three full-time equivalent employees. 20 percent of grant funding awarded through Phase 2 of the program has gone to businesses that identified as minority-owned, 23 percent as women-owned, and 2 percent as veteran-owned.
The Small Business Emergency Assistance Loan Program provides working capital loans of up to $100,000 to businesses with less than $5 million in revenues. Loans made through the program have ten-year terms with zero percent interest for the first five years. To date, the NJEDA has approved 133 loans through the program worth a combined total of $9,123,187. Of the businesses approved for loans, 27 percent self-identified as woman-owned, 18 percent self-identified as minority-owned, and 4 percent self-identified as veteran-owned.
In addition to providing resources directly to businesses, the NJEDA has partnered with six New Jersey-based CDFIs through the CDFI Initiative to provide low-cost financing to small and microbusinesses. To be designated as a CDFI, an institution must certify that at least 60 percent of its financing activities are targeted to low- and moderate-income populations or underserved communities. With NJEDA support, the six partner CDFIs have provided 258 loans worth a total of $6,073,258. Of the businesses approved for loans through the CDFIs, 39 percent self-identified as woman-owned, 21 percent as minority-owned, and 2 percent as veteran-owned.
The NJEDA has also supported early-stage innovation economy businesses, which are facing their own unique set of COVID-19-related challenges. The NJ Entrepreneur Support Program encourages continued capital flows to new companies by providing 80 percent loan guarantees for working capital loans to entrepreneurs. To date, this program has supported investments in 12 companies with $1,836,000 in guarantees.
In addition to financial support, the NJEDA has also provided a variety of technical assistance programs for businesses struggling to adjust to new health and safety guidelines. The Authority partnered with the African American Chamber of Commerce of New Jersey (AACCNJ), the Statewide Hispanic Chamber of Commerce of New Jersey (SHCCNJ), the New Jersey State Veterans Chamber of Commerce, and Rising Tide Capital to provide technical assistance for 447 businesses applying for federal Small Business Administration support. Since then, the Authority has rolled out a number of other initiatives to help businesses adjust to doing business safely during the pandemic, including free business consulting for micro-businesses in Opportunity Zones, and training on ecommerce solutions for retail businesses and restaurants. 57 businesses are currently participating in these programs. In addition, the NJEDA has launched the PPE Access Program, which provides reduced-cost PPE for small businesses and information on the equipment they need to keep their employees and customers safe.
The Authority continues to explore new ways to address the challenges business owners and employees face and will announce additional programs and funding opportunities as they become available. Comprehensive information about the NJEDA’s COVID-19 response is available at https://covid19.business.nj.gov.
About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.com and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.