New Jersey Small Business Lease Grant Program
$10 million pilot program aims to revitalize downtowns and Main Streets
The New Jersey Economic Development Authority (NJEDA) plans to open applications for its Small Business Lease Grant Program on October 20, 2021. The $10 million pilot program will help revitalize downtowns and Main Streets by offsetting a portion of the cost associated with businesses and nonprofits leasing street-level space. It is the first of several programs the NJEDA will launch in the coming months under the Main Street Recovery Program.
Created under the Economic Recovery Act of 2020, the Main Street Recovery Program is a $100 million small business support program that will fund multiple financial assistance products aimed at supporting the growth and success of small businesses in New Jersey. More information is available at https://www.njeda.com/main-street-recovery-fund/
Starting October 20, 2021 eligible businesses and nonprofits that are entering new or amended market rate leases can apply for a pair of grants totaling up to 20 percent of annual lease payments.
The first grant will be paid to entities immediately after they are approved for the program and execute the grant agreement, and the second grant will be paid one year after lease payments have been paid.
More about the Small Business Lease Grant Program
To qualify for the Small Business Lease Grant Program, businesses and nonprofits must enter a new lease, lease amendment, or lease extension that includes at least 250 square feet of street-level office, commercial, or retail space. The lease must have been executed within 12 months prior to the application and applicants must also commit to remaining in the leased space for at least five years. Businesses and nonprofits that receive grants through these programs will also be required to agree to pay employees going forward for the five-year grant term at least $15 per hour or 120 percent of the minimum wage. Tipped employees are exempt from the $15 per hour requirement but must still be paid at least 120 percent of the minimum wage.
Complete eligibility criteria, and additional information about the program can be found at https://www.njeda.com/small-business-lease-grant-program/
KRS professionals are available and happy to provide guidance on grant programs. Please contact us if you need assistance.