Knowledge and Insights

On Tuesday, June 22^nd, 2021, New Jersey Governor Phil Murphy signed six bills, which provide additional assistance to small businesses that continue to struggle with the economic effects of the pandemic. The bill package provides $235 million to small businesses, allowing the New Jersey Economic Development Authority (NJEDA) to fulfill all eligible applications submitted during Phase 4 of the EDA’s Small Business Emergency Grant Program.

The $235 million in grants will support businesses and nonprofits who were hit hardest by the pandemic and are now deciding when and how to reopen, rehire and continue operation. The six-bill package sets aside $30 million specifically for restaurants and includes a $25 million fund for the new restaurants, retailers and service providers needed to fill the vacant storefronts left empty by closed businesses.

The funding will be administered by the NJEDA, which has reopened its Phase 4 grant pre-application for those businesses that missed the original deadline. So far, the EDA has distributed more than $420 million in aid to approximately 63,000 businesses across the state.

The breakdown of the $235 million is as follows:

• Microbusinesses: $120 million
• Bars and Restaurants: $20 million
• Child Care Facilities: $10 million
• Other Small Businesses and Nonprofits: $50 million
• New Businesses and Start-Ups: $25 million
• Sustain and Serve: $10 million

Interested business owners and nonprofits will need to pre-register here to access the application. Pre-registration reopened on Wednesday, May 26^th, at 9:00 a.m. EDT, and will remain open until Wednesday, June 30^th, at 5:00 p.m. EDT. Applications will become available following the pre-registration period. Pre-registered applicants will return to https://programs.njeda.com/en-US/ to complete an application based on the below schedule:

• Restaurants, Child Care Providers and Small Business: July 7, 2021, 9:00 a.m. EDT.
• Micro Business: July 8, 2021, 9:00 a.m. EDT.

Applications will stay open until July 15, 2021, 5:00 pm EDT and will be accepted on a first-come, first-served basis.

For more information, visit the State of New Jersey or NJEDA’s press releases.

DISCLAIMER: This advisory resource is for general information purposes only. It does not constitute business or tax advice and may not be used and relied upon as a substitute for business or tax advice regarding a specific issue or problem. Advice should be obtained from a qualified accountant, tax practitioner or attorney licensed to practice in the jurisdiction where that advice is sought. It is possible that if additional information from the SBA, Treasury Department and/or your lender is forthcoming, our observations and comments noted herein could be materially different.