Small Business Emergency Assistance Loan Program

The New Jersey Economic Development Authority (NJEDA) has approved a series of aid packages for small/mid-size businesses in the amount of $75 million. The NJEDA programs focus on businesses that have been hit the hardest by COVID-19.

One of the NJEDA programs, the Small Business Emergency Assistance Loan Program is a $10 million program that will provide up to $100,000 towards working capital loans to businesses and eligible non-profits with less than $5 million in revenues.

The Small Business Emergency Assistance Loan applications will open April 13, 2020 at 9:00 a.m.

Completed applications will be considered on a first come, first serve rolling basis. Applications will be available through this link: https://cv.business.nj.gov

• Loan Terms

  • Up to $100,000 towards working capital loans to businesses and eligible non-profits;

  • 10 year term and amortization;

  • 0% interest rate for the first 5 years, then resetting to the NJEDA’s prevailing floor rate (capped at 3%) for the remaining five years;

  • Deferred repayments for 12 months;

  • No fees associated with the Small Business Emergency Loan Program for the first five years of the loan, including application fees, and then standard modification fees will apply.

• Eligible businesses:

  • Have a physical commercial location in the State of New Jersey  (home-based businesses are not eligible);

  • Have been in existence for at least one full year;

  • Have $5 million or less in annual revenue;

  • Can show a global debt service coverage ratio of 1.00 (as of December 31st, 2019);

  • Can demonstrate a negative impact on business due to the COVID-19 outbreak on or after March 9th, 2020 (including, but not limited to: reduction of business hours, complete closure of business, at least a 20% decline in revenue, employees unable to work, required to close by government, or disruption of supply chain);

  • Can provide CEO certification that you are making a best-effort to not lay off employees or will re-hire employees as soon as possible;

  • Are registered to do business in New Jersey and must certify that the company is in good tax standing with the State;

  • Are in good standing with the New Jersey Department of Labor and Workforce Development;

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

• The following businesses are not qualified (“Non-Eligible Businesses”):

  • 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.

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