Governor Murphy recently signed bills establishing more grant funds for small businesses in New Jersey.
The programs include $25 million for microbusinesses (5 or fewer employees), $15 million for small businesses (6 to 50 employees), $10 million for child care centers, and $35 million for “food services and drinking places.” In order to qualify, a business must have been affected by at least one of the following:
– Temporarily shut down;
– Required to reduce hours;
– Had at least a 20% drop in revenue;
– Materially impacted by employees who cannot work due to the outbreak; or
– A supply chain that has been materially disrupted and therefore slowed firm-level production during the pandemic.
Interested business owners MUST pre-register to access the application. Pre-registration will begin on Monday, April 19 at 9am and will close on April 29 at 5pm. The application will be available through the phased approach detailed below, following the end of the pre-registration period.
– May 3: Businesses that did not apply or were not approved for Phase 3 funding
– May 5: Restaurants and child care providers
– May 10: Microbusinesses
– May 12: All other businesses.
Applications for each category will be open for a period of one week and will be accepted on a first-come, first-served basis, based upon the date and time the EDA receives a completed application submission. Applicants must complete the full application to be considered for grant funding.
Grant awards will be calculated based on the number of full-time equivalent employees (FTEs) businesses employ. Microbusinesses with five or fewer FTEs and sole proprietorships will receive up to $10,000; businesses with six to 25 FTEs will receive up to $15,000; and businesses with 26 to 50 FTEs will receive up to $20,000. A grant size estimator is available.
Grant awards will be based on the peak FTE count from a business’s past eight quarters of WR-30 filings. Businesses must use grant funds for reimbursement of lost revenue as a result of business interruption caused by the pandemic. Funds may not be used for capital expenses.
KRS professionals are available and happy to assist with grant applications. Visit the KRS Coronavirus Resources Page for additional information. Please contact us if you have any questions, concerns, or need advisement during this unprecedented time.