NJ Ignite

NJ INCUBATOR & COLLABORATIVE WORKSPACE RENT INITIATIVE

One of the pillars of Governor Murphy’s vision of a stronger fairer economy is recreating New Jersey as a home for innovation. Fostering emerging businesses and helping them overcome barriers to commercial success is critical to achieving that vision.

NJ Ignite supports entrepreneurs by providing rent support grants. In addition, this program provides collaborative workspaces with a new tenant attraction tool.

If you have any questions about NJ Ignite, please email NJIgnite@njeda.com.

Please click here for a list of other known collaborative workspaces in New Jersey

Program Details

Grants that support rent of early stage technology and life science companies in New Jersey collaborative workspaces
EDA’s grants will cover rent payments for 2, 4 or 6 months
A collaborative workspace must match EDA’s grant to the tenant company on a 1:2 basis (e.g. if EDA provided a grant for 2 months, the collaborative workspace would need to provide a grant for 1 month)
The start-up tenant company must commit to continuing to work from the collaborative workspace (paying rent) for a period no less than EDA and the collaborative workspaces combined months of support
EDA will provide an additional month of support if the workspace is located in an Opportunity Zone, affiliated with a hospital system or New Jersey university, or is recently established. (These months can be added together for a total of three additional months and do not count toward the workspace match requirement or the tenant commitment requirement.)

Eligibility

Collaborative Workspaces:

Located in New Jersey
Have a Division of Taxation Tax Clearance Certificate (which may be requested through the State of New Jersey’s Premier Business Services portal online). Please see link below under "Application Process" for more information.
Have an NJ Business Registration Certificate. Please see link below under "Application Process" for more information.
Have a minimum of 5 unique paying tenants over the last 2 years * (Tenants must have an arms-length relationship with the collaborative workspaces owners and operators)
Have an operating cost (e.g., rent or mortgage or internal corporate charge-back)
Offer at least one type of work space - private office space, hot-desks or dedicated desks
Commit to hosting at least 8 innovation ecosystem building events in a year. Examples of ecosystem building events include: meet-ups, speaker series, office hours for lawyers/ accountants/ consultants/ investors)
Certify that the workspace charges rent to tenants and that the rent that would be charged to the startup and supported by EDA is market-rate.
Commit to matching EDA’s grant to the tenant company on a 1:2 basis
A facility can receive a bonus month from the EDA if it meets one of the below criteria
- In an Opportunity Zone
- Affiliated with a NJ University or Hospital
- A new facility less than 90 days old
  - To establish the age of the facility one of the following documents can be used NJ business Registration, NJ Tax Clearance, Certificate of Occupancy or lease with Landlord

* Workspaces formed less than 90 days prior to the approval request may qualify for the program on a case-by-case basis, if they have at least 3 signed prospective lease agreements.

Use this this checklist to see if you qualify!

Startup Companies:

Be registered to do business in New Jersey. Please see link below under "Application Process" for more information.
Provide a two-page executive summary of their business. Please see sample document under Application Process > Step 2 > Grant Application and Required Documents.
Are a technology or life sciences company (qualifying industries include: advanced computing, advanced materials, biotechnology, electronic device technology, information technology, food technology, life sciences, medical device technology, health care technology, logistics technology, mobile communications technology, agriculture technology, or renewable energy)
Are applying within three years of earliest date of formation
Have fewer than 10 employees (1099 or W2)
Have less than $1,000,000 in trailing 12-months gross sales from date of application submission
Have at least one full-time NJ employee that will be working in the facility (1099, W2, and common law employees are eligible)
Have not previously utilized another collaborative workspace in NJ (use of out-of-state collaborative workspaces does not disqualify the tenant)
Commit to working at the facility beyond the grant term for 1x the length of the total grant. (For example, if the grant covers 2 months of rent from EDA and 1 month of rent from the collaborative workspace, the company must commit to an additional 3-months beyond the term of the grant.)

Use this this checklist to see if you qualify!

Fees

There are no fees associated with the NJ Ignite program.

Application, Disbursement and Annual Review Process

Step 1: Collaborative Workspace Becomes an Approved Space

A collaborative workspace must meet the eligibility requirements to be an approved workspace. To apply to be an approved workspace, please submit the required documentation (see Collaborative Workspace Application - Required Documents) below to NJIgnite@njeda.com.

Before you start, use this checklist to see if you qualify as a collaborative workspace.

Collaborative Workspace Application - Required Documents:

A. Signed self-certification

B. NJ tax clearance (Please note that the tax clearance will need to be renewed every 6 months)

C. NJ business registration

D. Tenant/Member List

i. This is an attachment that should be filled out and have at least 5 tenants/members over the last 2 years

E. Rent, mortgage or corporate charge back payment for one month evidencing a cost to run the space

*Please note that the approval process will take between 1-2 weeks with a completed application

Step 2: Apply for a Grant

Once a workspace is approved, it can start to market the rent support program to prospective tenants.

When the workspace identifies a start-up it would like to offer support to (e.g. provide 1, 2 or 3 months of rent support), the workspace can apply for an EDA grant by completing an online grant application and supplying the supporting documentation. (See Grant Application and Required Documents below for a list of all documentation required in an application package.)

Online grant applications will include basic information about the tenant company and a signed lease (can be contingent on grant funding) to start within 30 business days +/- from grant application submission date).

Before you start, use this checklist to see if the startup qualifies.

Grant Application and Required Documents:

A. Complete Online Grant Application
B. Signed self-certification certificate

C. NJ Business Registration

D. 2-page executive summary (see sample)

E. Articles of incorporation (evidencing that the company is not more than three years in existence)

F. Employee verification form

G. Financial statements since incorporation (management prepared P&L and Balance Sheet)

H. Signed lease/membership agreement (draft prepared will be accepted- with executed copy to follow within 30 days)

I. Right of Entry Form

J. Certificate of Insurance naming the NJEDA as additional insured on the collaborative workspace’s general liability insurance policy

Step 3: Execute a Grant Agreement

Once approved, the collaborative workspace will then need to execute an agreement (see below document) with NJEDA to finalize the terms and conditions of the grant.

Sample Grant Agreement

Step 4: Submit a Disbursement Request

A. Collaborative workspace provides rent-free spaces as per the agreement and grant application

B. Tenant company completed agreed upon tenancy and rent payments

C. Collaborative workspace submits disbursement request to EDA (NJIgnite@njeda.com) with supporting documentation

1. Signed disbursement request

2. Rent/fee payments from tenant/member (cancelled check, wire payments, receipt of payment)

3. Executed lease/membership agreement (if not already submitted)
4. Division of Taxation Tax Clearance Certificate - (this applies to the workspace manager if their previous tax clearance
exceeds 6 months)

D. EDA reviews request and if requirements have been met disburses grant to the collaborative workspace.
*Please note that the disbursement process will take between 1-2 weeks with a completed disbursement request

Step 5: Annual Collaborative Workspace Review

1. EDA requests documentation from collaborative workspace for yearly review.
A. Collaborative workspace will need to submit a “Community Events Form” to ensure that the 8 community events occurred

1. Community events form

B. Collaborative workspace will need to prove that tenant/member stayed for grant period
2. Tenant/member duration form
3. Submit rent/free payments, swipes into space or satisfactory documentation
2. EDA reviews documentation and reapproved participation or addresses issues (clawback funds/program removal)
*Please note that the yearly review process will take between 3-4 weeks with a completed annual review package