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NJEDA announces Henri and Ida relief grant to support recovery for small businesses 

The New Jersey Economic Development Authority (NJEDA) announced the approval of the Henri/Ida Business Assistance Grant Program. The $10.5 million program will provide short-term, immediate rent/mortgage reimbursement in grants of $1,000 to $5,000 for NJ businesses and non-profits that suffered physical damage from the effects of recent tropical storms Henri and Ida.

The NJEDA expects to launch an online application for the program at 9:00 a.m. on Friday, September 17th. 

About the Henri/Ida Grant Program

The Henri/Ida Business Assistance Grant Program will provide support to businesses and non-profits impacted by hurricanes Henri and Ida that have up to 50 full-time equivalent employees as reported on their last WR-30 form (Q2 2021) with the NJ Department of Labor and Workforce Development (DOL) and have a commercial location in the State that suffered physical damage as a result of tropical storms Henri and Ida. 

NJEDA

“Countless New Jersey businesses endured the wrath of Tropical Storms Henri and Ida in recent weeks, and today’s action by the NJEDA’s Board will allow us to move swiftly to help those businesses in need,” said Governor Murphy. “Time is clearly of the essence and we are determined to get funds out to businesses and non-profits as quickly as possible.”

Of the $10.5 million, $10 million will be available for businesses and non-profits impacted by Ida and $500,000 will be available for businesses and non-profits impacted by Henri. Additionally, to ensure grants reach the hardest hit communities, including communities of color, one-third of the $10 million in funding will be targeted to businesses with a primary business location within the 715 census tracts designated as eligible to be selected as an Opportunity Zone.

 

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“The NJEDA shares Governor Murphy’s sense of urgency as we work to provide support to small businesses and non-profits dealing with the impact of Henri and Ida,” said NJEDA CEO Tim Sullivan. “The need for assistance is particularly dire, as these storms occurred just as New Jersey was emerging from the impact of the COVID-19 pandemic. It’s more critical than ever that we do our best to help impacted entities return to normal operations so they may continue their role as the economic drivers of New Jersey’s communities.”

Grant eligibility requirements 

Landlords and home-based businesses are not eligible for grant funding through this program. To be eligible, the applying entity must:

  • Provide certification of an unmet need due to damage and/or business interruption.
    • This includes, but is not limited to, flooding, interior or exterior damage to the building structure, roof damage, and siding damage, all of which are directly related to tropical storm Henri and Ida. Loss of power alone will not be considered physical damage.
  • Provide documentation of physical damage to the applicant’s physical commercial location.
  • Have been in operation on August 1, 2021.
  • Present a valid Employer Identification Number (EIN).
  • Submit recent wage reporting form (WR30), if applicable.
  • Submit evidence of an August rent/mortgage payment of at least $1,000 as well as have a need that is greater than $1,000.
  • Be registered to do business in the State of New Jersey, as evidenced by a valid Business Registration Certificate.
  • Be in good standing with the Department of Taxation and DOL, and if applicable, the Division of Alcoholic Beverage Control, the Department of Children and Families, and/or the Department of Human Services.
  • Complete an affidavit identifying all funding sources related to recovery from tropical storms Henri and Ida, including prior grants, insurance, and Small Business Administration loans and grants.
  • Comply with any additional requirements that may apply.

You may be interested: Hurricane Ida leaves vulnerable communities in ruin

Application process

Business owners and non-profit leaders are asked to thoroughly document all physical damage as they prepare to apply for assistance through this and any future programs, including taking clear photographs and saving receipts for repairs and associated materials.

Online applications for the Henri/Ida Business Assistance Grant Program will be available at programs.njeda.com at 9:00 a.m. on Friday, September 17th, 2021.

Applicants who have not applied for NJEDA assistance in the past will need to create a new Username and Password. Applicants who have previously applied for NJEDA COVID-19 relief programs can use their existing Username and Password. The NJEDA encourages anyone considering applying to visit programs.njeda.com prior to September 17th to create a new Username and Password or to verify that they remember their existing Username and Password.

Applications will be accepted on a first-come, first-served basis, based upon the date in which the Authority receives a completed application submission.

Businesses whose applications are denied will have the right to appeal. Appeals must be filed within the timeframe set in the declination letter (which must be at least 3 days but no longer than 10 days).

For more information, visit NJEDA Henri and Ida Relief

Gov. Phil Murphy announces $100 million CARES Act funding for NJ small businesses affected by COVID-19

COVID-19 had hit small businesses the hardest, with many having to shut down for extended periods of time and severely limit their services leading to loss of revenue and financial hardship. Luckily relief is on the way for New Jersey small businesses as Gov. Murphy announces $100 million in additional CARES Act funding to support NJ residents and businesses affected by the COVID-19 pandemic.   

CARES Act funding to support NJ businesses

It’s no secret that COVID-19 has had a severe impact on the global economy. For months, businesses came to a screeching halt and for states like New Jersey, where small businesses are integral to the economy, local communities felt the economic blow hard. 

“Small businesses and the people they employ are the backbone of New Jersey’s economy, yet they have borne a disproportionate share of the burden of the COVID-19 pandemic,” said Governor Murphy. “If we are to emerge from this pandemic stronger and more resilient than we were before, it is incumbent on us to support them in any way possible. This additional funding helps us accomplish that goal.”

The additional aid comes as a relief to many NJ restaurant and small business owners who have struggled the most during this time. The bulk of the money, $70 million, will be distributed to restaurants, microbusinesses, and other small businesses through Phase 3 of the New Jersey Economic Development Authority (NJEDA) Small Business Emergency Assistance Grant Program. An additional $10 million will be used to help small businesses purchase Personal Protective Equipment (PPE) through the NJEDA Small and Micro Business PPE Access Program. 

Phase 3 of the Grant Program expands eligibility to any business with 50 or fewer full-time equivalent employees (FTEs) and increases the amount of funding businesses can receive. To ensure funds flow to businesses that need them most, Phase 3 includes set-asides for grants to restaurants and micro-businesses. $35 million will be dedicated to support businesses classified as “Food Services and Drinking Places” under NAICS code 722 and $15 million will be directed to support “micro-businesses” that have five or fewer employees. The remaining $20 million will be available to support any eligible business.

“I want to commend our state leaders for working together to get the federal coronavirus relief dollars we passed last spring into the hands of those who need it most,” said U.S. Senator Bob Menendez.  “This $100 million fund announced today by the Governor and our legislative leaders comes from the money we in Congress included in the CARES Act to help combat the economic fallout of this pandemic.  The federal money will help struggling New Jersey small businesses stay open, help them get the personal protective gear they need to keep employees and customers safe, and provide additional rental and food assistance to residents who need it most.”

In line with Governor Murphy’s commitment to a stronger, fairer recovery, one third of each of these pools will be directed to support entities that are located in census tracts that were eligible to be selected as a New Jersey Opportunity Zone.

 The Administration is also providing $10 million of additional CARES Act funding to support the Authority’s Small and Micro Business PPE Access Program. Launching in late October, this program will utilize an innovative public-private partnership model to enable businesses with 100 employees or fewer to receive grants in the form of automatic discounts on PPE purchased through NJEDA-approved “Designated Vendors”.

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 “Supporting small businesses is vital to ensuring New Jersey’s economy withstands the immediate impacts of the COVID-19 pandemic and is well-positioned for a strong recovery. The Small Business Emergency Assistance Grant Program and the PPE Access Program are powerful tools that will help thousands of business owners and employees face the challenges the pandemic has created,” said NJEDA Chief Executive Officer Tim Sullivan. “Governor Murphy’s strong leadership throughout this outbreak and commitment to supporting these critical programs will provide immediate relief to the business owners and workers who need it most while continuing our progress toward a stronger, fairer recovery.”

Launched in early April, the Small Business Emergency Assistance Grant Program provides grants to small businesses impacted by the pandemic. To date, over 19,000 small businesses have benefited from the program.

Additional relief for renters and food banks 

The pandemic has also had a devastating impact on many vulnerable NJ families. To help protect them the Administration will also provide $15 million more in rent relief for New Jersey tenants through the DCA’s COVID-19 Emergency Rental Assistance Program. This program reduces the burden renters face by paying landlords directly for up to six months. The funding announced today will cover rent incurred from August 1, 2020 through December 30, 2020. Payments per household will depend on a variety of factors such as location, rental market, family size, and average per household income.  

“The additional support we are providing will extend relief to tenants so they can focus their limited resources on staying safe and secure,” said Lt. Governor Sheila Oliver, who serves as DCA Commissioner.

Photo by Joel Muniz on Unsplash

Lastly, $5 million will go toward supporting food banks and other hunger relief efforts. 

“The coronavirus outbreak has exacerbated existing hunger issues and has created new struggles for families who have lost jobs and wages,” said NJ Agriculture Secretary Douglas Fisher. 

The CARES Act funding will go toward helping New Jersey’s food banks, pantries, and soup kitchens expand their capacity for these continually increased demands so that they can help feed more NJ families in need.

Small Business Emergency Assistance Grant

NJEDA launches Small Business Emergency Assistance Grant Program Phase 2

Information for Phase 2 of the NJEDA Small Business Emergency Assistance Grant

NJED will award $45 million in federal CARES Act funding to small businesses. To ensure that funding goes to businesses and communities that need it most, $15 million of Phase 2 funding will be set aside to support qualified businesses located in one of the 715 census tracts that were eligible to be selected as a New Jersey Opportunity Zone. Additionally, all NAICS code restrictions from Phase 1 of the grant will be removed for Phase 2.

 

Your organization may use Phase 2 grant funding to

Reimburse revenue lost as a result of a business interruption caused by COVID19. Funding cannot be used for capital expenses, including construction.

Phase 2 Grant Award Amounts

Businesses will receive $1,000 per full-time employee, (based on WR-30 filing). Sole proprietorships or other companies with no full-time employees will receive the minimum grant amount ($1,000).

  • Minimum grant amount (per application): $1,000
  • Maximum grant amount (per application): $10,000 (for entities with more than 10 FTEs)
Your organization is eligible for a Phase 2 Emergency Relief Grant if…
  • You have 25 or fewer full-time employees, as reported on most recent WR-30 filing with the New Jersey Department of Labor
  • You have a physical commercial location in the State of New Jersey
  • Home-based businesses must be based at a home located in New Jersey
  • You are a non-profit organized as 501(c)(3), 501(c)(4), and 501(c)(7) organizations
  • Your CEO certifies that your business: 1) Was in operation on February 15, 2020; 2) Will make a best effort not to furlough or lay off any individuals from the time of application through six months after the end of the declared state of emergency; 3) Has been negatively impacted by the COVID-19 declared state of emergency on March 9, 2020; 4) Has a material financial need that cannot be overcome without the grant of emergency relief funds
  • Your Business: 1) Is registered to do business in the State of New Jersey; 2) Does not have any outstanding tax liabilities; 3) Is in good standing with the New Jersey Department of Labor

You can learn about other NJEDA programs and see what you may qualify for using the NJ COVID-19 Business Support Eligibility Wizard. Explore how how NJEDA determines grant size with the Grant Size Calculator or access a copy of the grant application. More information is available below on the grant scope, eligibility, and the materials required for application submissions.

Information from Phase 1 of Grant Funding

Businesses can access the full Notice of Funding Availability.

 

The Small Business Emergency Assistance Grant program will provide funding as efficiently and quickly as possible to SMEs that are in need. The focus of this round of funding is on the smallest enterprises in industries that are among the most adversely impacted by the COVID-19 containment measures.

The goal of the grants is to try to preserve the ability for SMEs to support and maintain a workforce during this containment period that is as close to pre-outbreak levels as possible.

The Small Business Emergency Assistance Grant Program will provide up to $5,000 to NJ-based SMEs that have between 1–10 full time equivalent employees (“FTE”). The grant funding is targeted as unrestricted payroll and working capital support, and cannot be used for any capital expenses, including construction.

Grant values are calculated at $1,000 per FTEs reported on business’ WR-30 filed with the New Jersey Department of Labor and Workforce Development.

  • Minimum grant amount (per application): $1,000
  • Maximum grant amount (per application): $5,000

Total available funding of up to $5 million of which $3 million of the program funds will be set aside for SMEs with 5 or fewer FTEs.

Small Business Emergency Assistance Grant

Your organization is eligible for the Small Business Emergency Assistance Loan Grant if you…
  • Have between 1 and 10 FTEs. This means companies non-employee companies (holding), companies that have between 1-10 FTE utilizing 1099 employees, and larger firms are not eligible for this round of grant funding.
  • Have a physical commercial location in the State of New Jersey. Home-based businesses are not eligible for this round of grant funding. A home-based business is a business operated out of a residential property where commercial activity is not zoned to take place.
  • Are classified in one of the following industries: Retail (NAICS codes starting with 44… or 45…); Accommodation & food services (NAICS codes starting with 72…); Arts, entertainment & recreation (NAICS codes starting with 71…); Other services(only those with NAICS codes starting with 811… and 812). You can look up your NAICS code at naics.com/search
  • Are registered to do business in the State of New Jersey.
  • Must certify that the company is in good tax standing with the State
  • Are in good standing with the Department of Labor and Workforce Development, with all decisions of good standing at the discretion of the Commissioner of the Department of Labor and Workforce Development.
  • The CEO of the business must certify that the business:

                1. Will make a best effort not to furlough or lay off any individuals from the time of application through six months after the end of the declared state of emergency. SMEs that have already furloughed or laid off workers must make a best-effort pledge to re-hire those workers as soon as possible. Any material breach of its best efforts certification may result in the NJEDA seeking repayment of the grant.

                2. Has been negatively impacted by the COVID-19 declared state of emergency in Executive Order 103 (e.g., 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 that has materially been disrupted and therefore slowed firm-level production).

                3. Has a material financial need that cannot be overcome without the grant of emergency relief funds at this time (e.g., does not have significant cash reserves that can support the SME during this period of economic disruption

  • Non-profit organizations are eligible for this program. Eligible non-profits must have status of 501(c)(3), 501(c)(4), 501(c)(7)
additional paycheck protection program

(Photo credit Kelly-Sikkema-unsplash)

Types of businesses not eligible:

  • Related to gambling or gaming activities
  • Related to the purveyance of “adult” (i.e., pornographic, lewd, prurient, obscene) activities, services, products or materials (including nude or semi-nude performances or the sale of sexual aids or devices)
  • Auction or bankruptcy or fire or “lost-our-lease” or “going-out-of-business” or similar sale
  • Traveling merchants
  • Christmas tree sales or other outdoor storage
  • Any other activity constituting a nuisance
  • Illegal under the laws of the State of New Jersey

No fees will be collected by the authority for this program and funding will be fully disbursed as quickly as possible upon approval of grant application.

In order to apply for the grant, businesses will need to provide the following…

Contact information for someone who is authorized to speak on behalf of your company. For example: an owner or an executive such as a CEO or Executive Director

Basic information about your company.

  1. Registered legal name and “Doing Business As” name. To confirm your organization’s registered legal name, visit Business Name Search.
  2. Federal Employer Identification Number (EIN)
  3. Year your company was established
  4. Full-time employees as of December 31, 2019 and Part-Time Employees as of December 31, 2019

Your organization’s industry as defined by your NAICS code. To confirm your NAICS code, check your federal tax filing or use this site to look up your NAICS code: naics.com/search.

Be able to answer the State’s basic debarment question. To see the full application and read the State debarment questions, you may access a copy of the loan application now,

Be able to affirmatively answer and/or certify that:

  1. You are not a home-based business. A home-based business is a business operated out of a residential property where commercial activity is not zoned to take place.
  2. You are not a prohibited business.
  3. You have been impacted by the COVID-19 outbreak.
  4. You have a material financial need that cannot be overcome without the grant funds.
  5. You will make a best effort not to lay off any additional employees and re-hire any whom you have already laid off.
  6. Information you are providing is correct.
  7. You will allow the NJEDA to check your entries against other State sources of data.

Updated: May 22, 2020
Source: NJEDA