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Breaking News for the Business Community

BREAKING NEWS FOR THE BUSINESS COMMUNITY

February 10, 2021
Passaic County, New Jersey
 


Small Business Lease Emergency Assistance Grant Program
 
Companies located in these Passaic County municipalities: City of Clifton; City of Passaic; City of Paterson are Eligible to participate!
 
Governor Phil Murphy and Lt. Governor Sheila Oliver recently announced $5 million in funding for Phase 2 of the Small Business Lease Emergency Assistance Grant Program. This commercial rent relief program provides grants up to $10,000 for COVID-impacted small businesses and nonprofits located in NJRA’s 66 legislatively designated communities. VISIT: https://www.njra.us/smallbusinessleasegrant for additional information.
 
Passaic County will be sponsoring a webinar on this program with the NJRA on February 19, 2021 at 10 am to clarify the application process and answer questions from the business community.
 
Please use this link to register for the February 19, 2021 webinar: http://bit.ly/NJRAGrantsWebinar
 
The application for these grants opens on Monday, February 22nd, at 9:00 a.m. and is first-come-first served.
 
Eligibility Requirements:
  • Small businesses leasing commercial space in mixed-use buildings
  • Small businesses leasing space in commercial buildings
  • Small businesses leasing space to operate a storefront business
  • Small businesses occupying no more than 5,000 SF of space
  • Small businesses in one of our 66 legislatively designated municipalities
 
To view the list of our 66 legislatively designated municipalities, click here.


‘COVID-19 Workplace Health/Safety & Worker Benefits: What Employers Need to Know’ Webinar
 
Free webcast on February.18, 2021, 12 pm will detail available resources for New Jersey businesses regarding COVID-19 workplace safety
 
The webcast will provide New Jersey businesses of all sizes with critical information regarding COVID-19 workplace safety and employee benefits. The February program will run for one hour and is free and open to the public. Registration for the session can be secured here.
 
The seminar is offered In partnership with the New Jersey Business Action Center, Passaic County, Bergen County, Hudson County and the New Jersey Department of Labor & Workforce Development, this tri-county virtual event will also feature economic development leaders from Hudson, Bergen and Passaic counties.
 
Speakers will discuss state and federal worker benefits and protections, as well as health and safety resources for employers. Worker benefit topics will include reports on earned sick leave, paid family leave and more.
 
Speakers from the New Jersey Department of Labor & Workforce Development include:
 
  • Holly Low, Manager of Strategic Outreach: Low’s work promotes the NJDOL’s commitment to equitable access to labor laws and protections, and she helps N.J. workers understand their rights. She holds a Master’s in Public Policy from the Bloustein School at Rutgers University and a Bachelor’s in Sociology from Boston College.
  • Mark Wadiak, Assistant Director: Wadiak oversees the OSHA-PEOSH Consultation and Training Programs and the Mine Safety Education Program. Wadiak’s background includes working as a quality control chemist in the pharmaceutical industry and working with the U.S. Department of Labor – OSHA as a Compliance Safety and Health Officer for several years. He has over thirty-five years’ experience with the New Jersey Department of Labor assisting companies in identifying OSHA hazards and developing effective safety and health programs.
 
Willoughby, of the NJBAC, will moderate. The webinar will be streamed live, and the slides and the recording will be circulated to all registrants after the webcast. Guests will be invited to ask questions and participate in the discussion.
 
The February program will run for one hour and is free and open to the public. Registration for the session can be secured here.


Shuttered Venue Operators (SVO) Grant program
 
The Shuttered Venue Operators (SVO) Grant program was established by The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, signed into law on December 27, 2020. The program includes $15 billion in grants to shuttered venues, to be administered by the Small Business Administration’s Office of Disaster Assistance.
 
Eligible applicants may qualify for SVO Grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees. The company must have been in operation as of February 29, 2020. Venue or promoter must not have received a PPP loan on or after December 27, 2020.
 
Eligible entities include:
Live venue operators or promoters
Theatrical producers
Live performing arts organization operators
Relevant museum operators, zoos and aquariums who meet specific criteria
Motion picture theater operators
Talent representatives
 
Information on how to apply:


New Jersey Economic Development Authority (NJEDA) Brownfields Loan Program open on January 14th, 2021

Applications for the New Jersey Economic Development Authority (NJEDA) Brownfields Loan Program open on January 14th, 2021. This competitive loan program provides low-interest loans of up to $5 million to brownfield redevelopment projects for all aspects of brownfield revitalization, including assessment, investigation, and demolition.

Learn more and prepare to apply at https://www.njeda.com/bfloans

The new Brownfields Loan Program provides financing to potential brownfield site purchasers and current brownfield site owners who intend to develop commercial, retail, or mixed-use developments, expansions, or reuses. Unlike many funding sources for brownfields projects, the Brownfields Loan Program will finance pre-construction planning, demolition, asbestos, PCB removal, and lead-based paint remediation.

Loans made through the program will have ten-year terms with no interest for the first two years and only interest payments required for the subsequent two years. Interest rates on loans made through the program will be between two and three percent, with reductions available for projects that promote environmental resiliency, public health, and community well-being.

More information and complete eligibility criteria are available at https://www.njeda.com/bfloans

Applications for the Brownfields Loan Program will be open from January 14th to April 13th, 2021. Loans will be awarded through a competitive application process, with projects receiving scores based on various details about the brownfield site and the proposed redevelopment project. Projects that provide beneficial end uses will receive higher scores.

If you have questions about the Brownfields Loan Program or the application process, please reach out to the NJEDA Brownfields Team at brownfieldsloan@njeda.com.


SBA and Treasury Announce PPP Re-Opening; Issue New Guidance

The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced today that the Paycheck Protection Program (PPP) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13.  The PPP will open to all participating lenders shortly thereafter. 
 
Updated PPP guidance outlining Program changes to enhance its effectiveness and accessibility was released on January 6 in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.
 
This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.
 
“The historically successful Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” said Administrator Jovita Carranza. “Today’s guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery.”
 
“The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs,” said Treasury Secretary Steven T. Mnuchin. “This updated guidance enhances the PPP’s targeted relief to small businesses most impacted by COVID-19. We are committed to implementing this round of PPP quickly to continue supporting American small businesses and their workers.”
 
Key PPP updates include:
  • PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
  • PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
  • The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
  • The PPP provides greater flexibility for seasonal employees;
  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan. 
 
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
 
The new guidance released includes:
 
For more information on SBA’s assistance to small businesses, visit sba.gov/ppp or treasury.gov/cares
 
Disclaimer: The SBA does not endorse the organizations sponsoring linked websites, and does not endorse the views they express or the products/services they offer. All programs and services are extended to the public on a nondiscriminatory basis. 


New Jersey Economic Recovery Act of 2020 adopted – Approves and Extends Tax Credit Programs

The State of New Jersey has adopted legislation, named the “New Jersey Economic Recovery Act of 2020,” The legislation provides for the administration of programs and policies related to jobs, property development, food deserts, community partnerships, small and early stage businesses, State procurement, wind energy, and film production, and makes an appropriation.
 
Sections 2-8 of the bill address the Historic Property Reinvestment program providing tax credits for part of the cost of rehabilitating historic properties in this State. Tax credits under this program are capped at $50 million annually for six years.
 
Sections 9-19 of the legislation fund the Brownfields Redevelopment Incentive program providing tax credits to compensate developers of redevelopment projects located on brownfield sites for remediation costs. Tax credits under this program are capped at $50 million annually for six years.
 
Section 20-34 of the legislation fund the New Jersey Innovation Evergreen program auctioning tax credits for cash, which will be used to invest in innovation as a catalyst for economic growth and to advance the competitiveness of the State’s businesses in the global economy. Tax credits under this program are capped at $60 million annually for six years.
 
Sections 35-42 of the legislation addresses the Food Desert Relief program providing tax credits in order to incentivize businesses to establish and retain new supermarkets and grocery stores in food desert communities. Tax credits under this program are capped at $40 million annually for six years.
 
Sections 43-53 are the New Jersey Community-Anchored Development program providing tax credits to anchor institutions to incentivize the expansion of targeted industries in the State and the continued development of certain areas of the State. Tax credits under this program are capped at $200 million annually for six years, but the $200 million annual cap will be split so that up to $130 million of tax credits will be for areas in the 13 northern counties of the State and $70 million for areas in the eight southern counties.
 
Sections 54-67 create the New Jersey Aspire program providing tax credits to encourage redevelopment projects by covering certain project financing gap costs.
 
Sections 68-81 create the Emerge program providing tax credits to encourage economic development, job creation, and the retention of significant numbers of jobs in imminent danger of leaving the State.
 
Tax credits under the Aspire program combined with tax credits under the Emerge program are capped at $1.1 billion annually for six years, but the $1.1 billion annual cap will be split so that up to $715 million of tax credits will be for projects located in the northern counties of the State and $385 million for projects located in the southern counties. The $1.1 billion cap does not apply to transformative projects. For transformative projects under the Aspire program and the Emerge program the combined credits over six years is capped at $2.5 billion.
 
Sections 82-88 create the Main Street Recovery Finance program providing grants, loans, and loan guarantees to small businesses. The bill appropriates $50 million for this program.
 
Section 89 allows the Director of Taxation to purchase unused tax credits.
 
Section 90 establishes a working group for the purpose of making recommendations for the establishment of entrepreneur zones throughout the State.
 
Section 91 grants preferences to businesses within the State with respect to bidders for a State contract to supply personal protective equipment.
 
Sections 92-97 creates the New Jersey Ignite program, a public-private partnership providing start-up rent grants to collaborative workspaces to support the early months of an early stage innovation economy business’s rent at the collaborative workspace. The bill appropriates $250,000 for this program.
 
Section 98 sets the caps on tax credits for the programs in sections 2-81 of the bill, including an overall cap of $11.5 billion for those programs, and allows a seventh year of tax credits under those programs for uncommitted credits.
 
Sections 99-105 creates an Office of Economic Development Inspector General, and requires employment of a Chief Compliance Officer to manage the Division of Portfolio Management and Compliance. The bill appropriates $250,000 to implement these sections.
 
Sections 106-107 allows tax credits for hiring employees for the manufacture of personal protective equipment. Tax credits under these sections are capped at $10 million annually for three years.
 
Section 108 allows deferrals, adjustments, and termination of incentive agreements for businesses affected by COVID-19.
 
Section 109 amends the Offshore Wind Economic Development Act, including to change eligibility requirements, disbursement of credits, and deadlines.
 
Sections 110-111 amends the existing film tax credit provisions to include provisions for “New Jersey film partners” and “New Jersey film-lease partners,” and to allow an additional $200 million of tax credits annually over 13 years.
 
Section 112 requires the Economic Development Authority (EDA) to adopt rules requiring that not less than the prevailing wage rate be paid to workers employed in connection with certain incentive programs.
 
Sections 113-114 makes adjustments to the New Jersey Emerging Technology and Biotechnology Financial Assistance Program, including to increase the annual amount of tax benefits that the EDA may approve for transfer between corporations.
 
Section 115 allows the EDA to purchase and lease real property.
 
Section 116 modifies and expands what the EDA’s Economic Recovery Fund’s money may be used for.
 
Sections 117-119 makes adjustments to the New Jersey Angel Investor Tax Credit Act, including to increase the annual tax credit cap from $25 million to $35 million and to add provisions for venture funds.
 
Sections 120-121 makes adjustments to the Grow New Jersey Assistance Program, including to amend the definition of “incentive effective date.”
 
Section 122-124 amends the Economic Redevelopment and Growth Grant Program, including to extend deadlines and allow an additional $220 million of tax credits to be awarded.
 
Sections 125-126 amends existing law to allow the Division of Taxation to share relevant taxpayer data with the EDA.
 
Section 127 appropriates $55.5 million, which includes the appropriations mentioned above for implementing sections 82-88, 92-97, and 99-105, as well as $5 million to award grants for zoning and economic planning services or economic redevelopment plans.
 
FISCAL IMPACT:
 
The Office of Legislative Services (OLS) notes that this legislation authorizes: up to $11.5 billion of tax credits over seven years for new incentive programs in sections 2-81; up to $2.6 billion of film tax credits over 13 years in sections 110-111; up to $220 million of tax credits under the Economic Redevelopment and Growth Grant program for certain project applications submitted prior to December 1, 2021 in sections 122-124; up to $30 million over three years for hiring employees for the manufacture of personal protective equipment in sections 106-107. The bill also increases the angel investor tax credit cap from $25 to $35 million annually in sections 117-119. Finally, the OLS notes that the legislation appropriates $55.5 million to support various programs and administrative functions established by the legislation.  


News Release
 
Contact: New Jersey Economic Development Authority
 
NJEDA Board Approves ERG Award for Hinchliffe Stadium Redevelopment
 
Project will bring jobs, affordable senior housing, museum, stadium, and recreation facility to Paterson 
 
TRENTON, N.J. (February 10, 2020) – The New Jersey Economic Development Authority (NJEDA) Board of Directors today approved an Economic Redevelopment and Growth (ERG) Program tax credit for the redevelopment of Hinchliffe Stadium in Paterson, New Jersey. The redevelopment of the historic stadium, which has been vacant for decades, will include a museum honoring the site’s history as a Negro League baseball stadium, a stadium and recreational center for the Paterson community, affordable housing for seniors, a restaurant and event space, and a parking garage.
 
“The Hinchliffe Stadium redevelopment is an exciting project that will have a significant impact in Paterson and provide a valuable economic boost for New Jersey at a time when the COVID-19 pandemic has hurt our economy,” said NJEDA Chief Executive Officer Tim Sullivan. “This project will create jobs, provide much-needed affordable housing for seniors, and bring valuable community assets to Paterson. Furthermore, rehabilitating a historic landmark that was the site of major accomplishments by Black athletes will send an important message that New Jersey values our diverse residents and is committed to supporting and celebrating their achievements. The NJEDA is proud to support this project and we look forward to working with Mayor Sayegh to see it through to completion.”
 
"The resurrection of Hinchliffe Stadium is not just about an historic ballpark, but about uplifting a neighborhood in a city that is making strides toward its own revitalization,” said Senator Nellie Pou. "While it has been tragic to see Hinchliffe fall into disrepair over these many years, today we imagine a new Hinchliffe that will not only look back at the sacrifice and endurance of such players as Paterson’s own Larry Doby, but will one day provide an opportunity for future boys and girls who can be inspired by its very existence toward their own unique greatness. This ERG award will nurture the future of Hinchliffe Stadium, and its surrounding neighborhood, so that together they will once again become a vibrant part of Paterson, a sorely needed recreational asset for its young people, and a source of renewal for the entire city for many years to come."
 
"I'm extremely excited for the Hinchcliffe Stadium redevelopment project in Paterson," said Assemblywoman Shavonda Sumter. "The city, as well as the State of New Jersey, will benefit from the economic stimulus this type of grand scale revitalization will provide. The Paterson community has been hit hard during COVID-19. This project will play a pivotal role in helping families and businesses rebuild stronger post-pandemic."
 
"The Hinchcliffe Stadium revitalization project is great news for the City of Paterson," said Assemblyman Benjie Wimberly. "This all-encompassing project is just the kind that changes a community and helps its citizens grow and thrive. Job creation, a strong economic boost, and safe housing for seniors are more than welcomed, Paterson deserves it. In addition, the cultural impact in honoring the site’s history as a Negro League baseball stadium with a museum, a stadium, and a recreational center for the community will finally recognize Paterson’s esteemed place in sports history."
 
“The revitalization of Hinchliffe Stadium is the economic boost Paterson needs as we begin our recovery from the COVID-19 pandemic and continue to build up our city,” said Paterson Mayor Andre Sayegh. “Hinchliffe Stadium is an iconic part of Paterson’s history that has been left vacant and in disrepair for too long. I thank the Paterson City Council, Paterson School Board, and many other local leaders who have helped move this project forward. The NJEDA support approved today will allow us to finally begin the process of restoring this historic site and adapting it to the needs of today’s Paterson residents. I am thrilled the NJEDA Board has chosen to support this project and eagerly anticipate the many benefits this project will bring to Paterson.”
 
"Bringing back this historic stadium will not only have a positive impact on people's lives, but it will also pay proper tribute to the Negro League legends who played on this field," said former professional baseball player Dwight “Dr. K” Gooden. 
 
"Paterson is a magical place for me and my family. My hope is that other Patersonians can excel on this hallowed ground just like my father did," said Larry Doby, Jr., son of Larry Doby, a baseball Hall-of-Famer who was the second Black player in the Major League.
 
Paterson is a city in need of transformative investment. The median income in the city is just $28,000 and the current unemployment rate is above nine percent – double the national average. Many Paterson residents live in homes that are more than 50 years old. This is problematic for many tenants and is particularly dangerous for seniors.
   
The Hinchliffe Stadium redevelopment project will play a central role in addressing these challenges and positioning Paterson for long-term success. The project site, a National Historic Landmark that hosted two Negro League baseball teams, is currently vacant and in a state of dangerous disrepair. The planned redevelopment honors the history of this site while providing much-needed resources to the residents who call Paterson home today.
 
The revitalized Hinchliffe Stadium will incorporate a variety of valuable community assets that will provide resources and job opportunities for Paterson residents. The site will include a 7,800-seat stadium and recreational and cultural facility with a museum dedicated to Negro League baseball. The project will also include 75 units of affordable housing for seniors and a 12,000 square-foot restaurant and event space. To accommodate residents and visitors, the project also includes a 315-spot parking garage.
 
This redevelopment will provide essential resources for the Paterson community. Paterson public schools will use the stadium for sports games, graduations, and other events, and the event space will host public recreation programs. In addition to providing new, affordable housing for elderly residents, the senior housing will include on-site social services for residents. The project will create 182 construction jobs and more once the stadium, restaurant, and event space are open.
 
Revitalization of Hinchliffe Stadium is slated to begin in March 2021 with anticipated completion in August 2022. RPM Development L.L.C. and BAW Development L.L.C. will lead the redevelopment. RPM is a leading developer of affordable housing in New Jersey, with experience in developing, constructing, and managing affordable housing properties. BAW Development is a minority-owned business that specializes in residential and mixed-use properties. The CEO of BAW Development is from Paterson. Life Management, Inc., a New Jersey-based nonprofit, will provide on-site social services for senior residents.
 
Per statutory requirements, the ERG tax credit approved today includes 80 percent of eligible project costs associated with non-parking components and 100 percent of the eligible costs associated with the parking components of the project. Developer fees, acquisition costs, and other ineligible expenses are excluded from the calculation of the award. No tax credits will be distributed until the NJEDA certifies successful completion of the project.
 
In addition to the ERG award approved today, The New Jersey Housing Mortgage Finance Agency (NJHMFA) and the Department of Community Affairs (DCA) have committed funding to support the redevelopment of Hinchliffe Stadium. The project has also received funding from the City of Paterson and private investors.

 



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Source: Melanie Willoughby
Executive Director, NJBAC