Phase 3 Program Overview and Eligibility
NJEDA will award a total of $70 million in federal CARES Act funding to small businesses. Any business or nonprofit located in New Jersey, including home-based businesses, with 50 or fewer full-time equivalent employees (FTEs) is eligible to receive grant funding during Phase 3. Businesses that received funding in previous phases of the program are eligible to receive Phase 3 funding.
Grant awards will be calculated based on the number of FTEs businesses employ.
- Micro-businesses with five or fewer FTEs and sole proprietorships will receive $5,000
- Businesses with six to 25 FTEs will receive $10,000
- Businesses with 26 to 50 FTEs will receive $15,000
For businesses that are classified as “Food Services and Drinking Places” (NAICS code 722) ONLY:
- Businesses in this classification with five or fewer employees will receive $10,00
- Businesses with six to 25 FTEs will receive $15,000
- Businesses with 26 to 50 FTEs will receive $20,000
Your organization may use Phase 3 grant funding to…
Reimburse revenue lost as a result of a business interruption caused by COVID-19. Businesses may not use the funding for capital expenses.
NJEDA is targeting Phase 3 grants to restaurants, micro-businesses, and businesses in census tracts that were eligible to be designated as Opportunity Zones. $35 million of funding 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 FTEs. The remaining $20 million will be available to support any eligible business.
In line with Governor Murphy’s commitment to a stronger, fairer recovery, 33 percent of each of these pools of funding ($11.55 million of the “Food Services and Drinking Places” funding, $4.95 million of the Micro-businesses funding, and $6.6 million of the other small businesses funding) will be directed to businesses located in one of the 715 census tracts that were eligible to be selected as a New Jersey Opportunity Zone. [This census tract map is provided as a courtesy and for informational purposes only. The link directs you to a site not hosted by the State. Although the data used by that website may have been provided by NJEDA as a courtesy to the public, the State and NJEDA are not responsible for and make no representation with regard to any information or content on that website. The State and NJEDA may use the same software and information to review grant applications but reserves the right to use any other appropriate software and/or information to determine the location of an application in relation to Opportunity Zone eligible census tracts.]
Mandatory Pre-Registration and Application Periods
Interested business owners will need to pre-register to receive an application. Pre-registration will begin on Monday, October 19th and will close on Tuesday, October 27th. The application will be available via a phased approach following the end of the pre-registration period, as detailed below. Applicants must complete the full application to be considered for grant funding.
Phase 3 of the Grant Program will likely be oversubscribed. To streamline the application process, the Authority is requiring all applicants to pre-register online. Applications will become available on a rolling basis following the pre-registration period. Pre-registered applicants will need to return to complete an application based on the following schedule:
- Restaurants – 9:00 a.m. on Thursday, October 29, 2020
- Micro businesses – 9:00 a.m. on Friday, October 30, 2020
- All other businesses, excluding restaurants and micro businesses – 9:00 am on Monday, November 2, 2020
Applications for each category will be open for a period of one week will be accepted on a first-come, first-served basis.
The New Jersey Economic Development Authority (NJEDA) has announced the Business Consulting for COVID-19 Recovery Program, a free consulting program to help small businesses address the challenges they are facing as a result of the COVID-19 pandemic and prepare for a strong long-term recovery. The program is open to all businesses with five or fewer employees that maintain a physical storefront or office in one of New Jersey’s Opportunity Zones. Currently in the pilot phase, the NJEDA anticipates expanding the program soon to accommodate more businesses.
Business owners interested in participating in the program should complete the intake form at http://forms.business.nj.gov/covid-recovery-consulting/. After submitting the form, an NJEDA representative will be in touch to provide more information on the next steps in the sign-up process. Business owners that need language assistance should send their name, spoken language, and telephone number to firstname.lastname@example.org.
The Business Consulting for COVID-19 Recovery program will provide businesses with free access to expert advisory services and staff support to assist them in overcoming their current challenges and preparing for long-term success. Through partnerships with the African American Chamber of Commerce of New Jersey (AACCNJ) and the Statewide Hispanic Chamber of Commerce of New Jersey (SHCCNJ), the NJEDA will provide up to 25 hours of free, one-on-one coaching and support implementing solutions to help make businesses more profitable while complying with public health protections the State has instituted to slow the spread of COVID-19. Participating businesses will receive advice and assistance in securing grants and loans, adapting their business models to current needs, crafting long-term business strategies, evaluating their financial health, and improving accounting and bookkeeping systems, as well as many other topics that can help them build a stronger, more sustainable business.
During the pilot phase, eligibility for the program is limited to businesses with five or fewer employees that maintain a physical storefront or office space in one of New Jersey’s 169 Opportunity Zones. Businesses interested in this opportunity should complete the NJEDA’s intake form. Applicants will be connected with consultants on a first-come, first-served basis, so any interested business should complete the form as soon as possible. The NJEDA anticipates expanding eligibility for the program soon.
The NJEDA administers a variety of programs providing support for larger businesses impacted by COVID-19. More information about these programs and other State support is available at https://covid19.nj.gov.