The NJ Entrepreneur Support Program provides a guarantee of an investor loan advanced for working capital to businesses that have been impacted by COVID-19.
80% guarantee of investment amount, not to exceed $200,000 per NJ Company for one year from the date of note issuance.
The total funding pool for the program is $5 million, and completed applications from investors for guarantees will be considered on a first-come, first-served basis, including
the ability to consider multiple guarantees per company towards the $200,000 company exposure cap.
Please visit https://www.njeda.com/about/Public-Information/COVID-19-Assistance-
Activity-Reports/NJ-Entrepreneur-Support-Program-Activity for a list of applications that have been approved to date.
To Be Used For:
Investor loans to be used by New Jersey entrepreneurial companies for working capital.
The NJ Startup Business and the Investor must meet the program requirements as detailed below:
NJ Startup Business Requirements:
• Minimum of 50% of employees in New Jersey, as reported on NJ WR-30, at year end 2019
• Less than 25 total employees at the time of application
• Under $5 million in trailing 12-month revenues
• A corporate headquarters in New Jersey (including at least one C suite member with a principal office in New Jersey)
• A valid New Jersey tax clearance certificate from the Division of Taxation
• Good standing with and NJ Workforce Development (DOL) at time of application and at time of any payment events with all decisions of good standing at the discretion of the Commissioner of the Department of Labor
Investor / Investment Requirements:
• Investors can include, but are not limited to, individuals, trusts, and corporations
• Employees/founders are not eligible for the guarantee
• Must have already provided funding to a New Jersey startup company business through a SAFE (simple agreement for equity),
convertible note or equity investment as of March 9th, 2020 (the date of the Governor’s EO 103)
• Qualified investors are not required to be New Jersey residents
The bridge loan/convertible note must be dated March 26, 2020 or later, have a minimum of a one-year maturity, be unsecured, and cannot have any current payment requirements (principal or interest) in year one
• In the event the investor converts the note, it may be
eligible for the New Jersey’s Angel Investor Tax Credit
Program if all program eligibility is met (20% or 25%
based on program guidelines)
• If the investor converts the note to equity, the Authority
will be provided with a warrant for 20% of the
guarantee amount, under the same pricing as the
investor’s conversion pricing on the Authority’s standard
For more information about the NJ Entrepreneur Support Program, including how to apply, please visit: https://cv.business.nj.gov.
The NJ Entrepreneur Support is part of a suite of pandemic relief programs the NJEDA has created to assist businesses of all sizes. These resources include grants for small businesses, support for private-sector lenders and CDFIs, funding for entrepreneurs, and technical support and marketplace information. Please visit https://cv.business.nj.gov for more information.
New Jersey Economic Development Authority
36 West State Street
P.O. Box 990
Trenton, NJ 08625-0990