Helpful Information for Vernon Business Owners
Posted: June 6, 2020
The New Jersey Economic Development Authority (NJEDA) has announced that applications for the expanded Small Business Emergency Assistance Grant Program will be available at 9:00 a.m. on June 9, 2020. The $45 million program will provide grants up to $10,000 to small businesses impacted by the coronavirus pandemic. View a sample application that business owners can use to prepare.
NJEDA staff will process the applications on a first-come, first-served basis. There will be no application fee.
The outbreak of novel coronavirus has created a major public health crisis in New Jersey. To slow the spread of the virus, Governor Phil Murphy implemented a variety of containment measures, including restrictions on public gatherings and mandated closure of non-essential businesses. To mitigate the economic impacts of these public health policies, the NJEDA created the Small Business Emergency Assistance Grant Program. During Phase 1, the NJEDA has provided more than $8 million in grants to date to nearly 2,500 businesses across all 21 counties.
The NJEDA received $50 million from the federal Coronavirus Relief Fund established under the Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act to support small businesses. The NJEDA will provide an additional $5 million to fund businesses that were waitlisted during Phase 1. The NJEDA will use $45 million to fund Phase 2, which will provide grants up to $10,000 to a significantly broader range of businesses than were previously eligible.
Eligibility changes for Phase 2 increase the employee cap for businesses from 10 full-time employees (FTEs) to 25 FTEs and remove the NAICS code restrictions that were in place for Phase 1 to allow almost all businesses as well as 501(c)(3), 501 (c)(4), and 501(c)(7) nonprofit organizations to qualify for funding. Phase 2 also makes grants available to home-based businesses and sole proprietorships, which were ineligible during Phase 1. To ensure 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. Business owners can check if their business is located in an eligible zone using the OZ Mapping Tool.
As part of the application, the business’s chief executive officer or equivalent officer must certify that the company was in operation on February 15, 2020, has been negatively impacted by the COVID-19 outbreak, and will make a best effort not to furlough or lay off any employees. To comply with duplication of benefits provisions within the Stafford Act, all applicants will also be required to fill out an affidavit identifying all funding previously received related to COVID-19, including Small Business Administration loans and grants, forgivable portions of Payroll Protection loans, and Economic Injury Disaster grants.