The New Jersey Economic Development Authority (NJEDA) has created a Small Business Emergency Loan Program to assist with the continued economic impact of COVID-19. This $10 million program will provide working no-to-low interest capital loans of up to $100,000 to businesses with less than $5 million in revenues. Small businesses will be able to apply for this loan on Monday, April 13th at 9am. Applications will be considered on a first come, first serve rolling basis. Business considering this loan are encouraged to review the available application in order to prepare and submit as quickly as possible. Be sure to use the NJEDA’s COVID-19 Emergency Support Eligibility Wizard to determine eligibility.
A business is eligible for the Small Business Emergency Assistance Loan Program if it:
- Has a physical commercial location in the State of NJ (Home-based businesses are not eligible for this program. A home-based business is a business operated out of a residential property where commercial activity is not zoned to take place.);
- Has been in existence for at least one year;
- Has less than $5M annual revenue;
- Can show a global debt service coverage ratio of 1.00 (as of December 31st, 2019);
- Is able to demonstrate negative impact related to COVID-19 on or after March 9th, 2020
- Is registered to do business in the State of NJ;
- Must certify that the company is in good tax standing with the State;
- Is in good standing with the Department of Labor and Workforce Development, with all decisions of good standing at the discretion of the Commissioner of the Department of Labor and Workforce Development;
- Is able to provide a CEO certification that the firm will make its best-effort to not lay off employees or will re-hire employees as soon as possible.
The application for the NJEDA Small Business Emergency Loan requires extensive, detailed information about the business. We strongly encourage clients who are considering this loan to thoroughly review the available application before the loan opens on Monday, April 13th.
KRS professionals are available and happy to assist with loan and grant applications. We continue to update our Coronavirus Resources Page. Please contact us if you have any questions, concerns, or need advisement during this unprecedented time.