Expanded program provides loans up to $50,000 to businesses with ten or fewer employees TRENTON, N.J. (August 11, 2020) – The New Jersey Economic Development Authority (NJEDA) today announced that it has started accepting applications for its expanded Micro Business Loan Program to support New Jersey small businesses, many of which are facing business interruption as a result of COVID-19. The application can be found at www.njeda.com/microbusinessloan. Applications will be accepted on a rolling basis.
Under the expanded program, $10 million is available for financing of up to $50,000 for micro businesses and nonprofits with ten or fewer full-time employees and no greater than $1.5 million in annual revenues. Loans through this program will have a 10- to 15-year term, with interest rates at two percent and no principal or interest payments for the first three years. Under the Micro Business Loan Program, financing can be used for inventory, the purchase of equipment, or working capital.
“Micro businesses are a dynamic and often overlooked part of New Jersey’s economy – but they represent a large and growing segment of our business community, led in many cases by women and people of color,” NJEDA Chief Executive Officer Tim Sullivan said. “With this purpose-built tool to support these unique businesses, we can help more entrepreneurs survive this current economic crisis and realize their long-term visions.”
The expanded Micro Business Loan Program is open to for-profit businesses with a business location in New Jersey, that have been in operation for at least one year, as well as home-based businesses and not-for-profit organizations that have been in operation for at least two years. Startup businesses, defined under the program as business in operation between six months and one year, may also be eligible for the program, but will be required to provide a business plan and five-year financial projections at application. Of the $10 million in total funding available through the program, $3.5 million will be set aside to support eligible entities located in New Jersey Opportunity Zone-eligible census tracts. Businesses that receive financing under the enhanced program and are still open and in operation 12 months after the closing date of the loan will have ten percent of the approved loan amount forgiven. Additionally, recognizing the extraordinary economic circumstances that make this program necessary, the NJEDA will waive all application and closing fees for the first three months from the date the application is opened.
Businesses that may be interested in the program should visit www.njeda.com/MicroBusinessLoan to review the program eligibility and access the loan application. Once the loan application is submitted, if the NJEDA determines the business may be eligible, the business will be asked to provide additional financial information the NJEDA will need to make a final decision on the loan application. Applicants that wish to start gathering any financial information needed can review the application checklist located on the program webpage for further guidance.
Comprehensive information about New Jersey’s coronavirus response is available at https://cv.business.nj.gov.
To read Governor Murphy’s full economic plan, please visit: https://nj.gov/economicplan
About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.