New Initiatives to Support Businesses Impacted by COVID-19
The New Jersey Economic Development Authority (NJEDA) announced a suite of new programs to support businesses and workers facing economic hardship due to the outbreak of the novel coronavirus COVID-19. The new initiatives include:
Small Business Emergency Assistance Grant Program – A $5 million program that will provide grants up to $5,000 to small businesses in retail, arts, entertainment, recreation, accommodation, food service, repair, maintenance, personal, and laundry services to stabilize their operations and reduce the need for layoffs or furloughs. Small Business Emergency Assistance Loan Program – A $10 million program that will provide working capital loans of up to $100,000 to businesses with less than $5 million in revenues. Loans made through the program will have ten-year terms with zero percent for the first five years, then resetting to the EDA’s prevailing floor rate (capped at 3.00%) for the remaining five years. Community Development Finance Institution (CDFI) Emergency Loan Loss Reserve Fund – A $10 million capital reserve fund to take a first loss position on CDFI loans that provide low interest capital to micro businesses. This will allow CDFIs to withstand loan defaults due to the outbreak, which will allow them to provide more loans at lower interest rates to microbusinesses affected by the outbreak. READ MORE
