SMALL BUSINESS LEASE GRANT
Please be advised, New Jersey State law prohibits most cannabis license and certification holders from receiving or continuing to receive an economic incentive from the NJEDA, including the Small Business Lease Grant. If the applicant, or any person who controls the applicant or owns or controls more than one percent of the stock of the applicant, has applied for or received a license or a certification from the New Jersey Cannabis Regulatory Commission (NJ-CRC), the applicant is ineligible for this program and should not proceed with an application. If an application is received from an applicant that meets this criteria, the application will be declined and the application fee will not be refunded.
NJEDA is currently developing financial assistance products to support cannabis and cannabis-related businesses – more information will be shared on the NJEDA website, when available.
The Small Business Lease Grant supports the growth and success of small businesses and non-profits by providing grant funding to cover a portion of lease payments for businesses and non-profits leasing new or additional space.
Applicant must meet SBA definition of Small Business
New leases, amendments and extensions must occupy a minimum of 250 sq. ft., lease amendments or extensions must include a minimum expansion of 250 sq. ft. (Space must be 250 sq. ft. larger than original leased space).
The lease must be for a minimum 5-year term not including extensions
The lease must be market-rate based on commercial real-estate information.
*See additional eligibility requirements below
The Small Business Lease Grant supports the growth and success of small businesses and nonprofits by providing grant funding to cover a portion of lease payments. These resources will help the establishment and growth of small businesses, while also helping to fill space that is currently vacant and preventing future vacancies.
The Grant is being funded through the Main Street Recovery Finance Program (NJ Economic Recovery Act). Of this $10 million allocated for the program, 40 percent ($4 million) will be reserved for businesses located in Opportunity Zone eligible census tracts.
Applications will be accepted on a rolling basis beginning October 20th, 2021
This Grant is open to businesses and nonprofits.
Applicants with multiple locations are limited to one application per location. Applicants cannot terminate an existing lease and enter into a new lease for the same square footage in order to pursue this grant.
- Be a commercial business, nonprofit, or operator of an incubator.
- Meet SBA definition of a Small Business – determined by employee count and NAICS code.
- Provide a current tax clearance certificate prior to approval.
- Provide certification from the landlord showing they are current on lease payments.
- Be in good standing with Department of Labor and Department of Environmental Protection.
- Certify at time of application that they are not in default of any other NJEDA or State assistance.
- Certify at application the applicant will pay wages that are the greater of $15/hour or 120% of the minimum wage rate for the term of the grant agreement (five years). Tipped employees are only required to be paid 120% of minimum wage rate.
- Commit to remaining in the facility for at least five years.
A lease must meet the following eligibility requirements:
- Square footage: between 250 to 10,000 square feet – over 10,000 is still eligible however, over 10,000 square feet will not be incentivized. For lease extensions, renewals, or amendments, the applicant must expand or add a minimum of 250 square feet.
- Must include first-floor (street-level) space. Leases that include two floors are eligible, but must include first-floor (street-level) space.
- Lease payments can only include the leasing of square footage (equipment cannot be included).
- Must be a minimum 5-year term not including extensions.
- Leases must be executed within 12 months of application.
- Must be market-rate based on commercial real-estate information.
Two grant awards of 20 percent of the annual lease payments on a minimum 5- year lease term:
First disbursement will be made after execution of grant agreement, for an amount equal to 20 percent of annual lease payment.
Second disbursement will be made after 12 months of lease payments have been paid by the applicant, for an amount equal to 20 percent of annual lease payment.
Approval Fee: $100
Payable after EDA approval and prior to execution of the grant agreement.
For more information or to ask a specific question please send an email to email@example.com and a team member will reach out to you.