NJEDA to Launch Additional Financing Tool for Micro Businesses Next Month

Montclair, N.J. (May 5, 2022) – In celebration of National Small Business Week, the New Jersey Economic Development Authority (NJEDA) today announced plans to open applications for its Micro Business Loan next month, which will make additional funding resources available through the Authority’s Main Street Recovery Program. The NJEDA has already issued nearly $5.5 million in grants through the Main Street Recovery Program.

Governor Phil Murphy’s Fiscal Year 2023 budget proposal includes $50 million for the Main Street Recovery Program. The Governor visited East Side Mags, a comic book store in Montclair to highlight a business that has received this funding.

“Small businesses like East Side Mags are essential to New Jersey’s vibrant and thriving Main Streets,” said Governor Murphy. “As we transition from pandemic to endemic, we must continue to support small businesses as they recover from the devastating impact of COVID19. I am proud to support New Jersey’s small businesses and look forward to seeing their continued resiliency and contributions to our economy and communities.”

“During Governor Murphy’s tenure, we have made historic progress to spur economic growth and support small businesses dealing with the ongoing effects of the COVID-19 pandemic,” said NJEDA Chief Executive Officer Tim Sullivan. “We’re already seeing the impact of the Main Street Recovery Program, as new businesses open their doors, hire new employees and move their local communities forward.”  

The Main Street Recovery Program is budgeted to provide $100 million to support the growth and success of small businesses in New Jersey. In just over six months, more than 200 small businesses have been approved for the Small Business Lease Grant and 32 small businesses have been approved for the Small Business Improvement Grant since February. The Small Business Lease Grant provides funding to help businesses who leased or expanded their commercial space in the last twelve months, while the Small Business Improvement Grant reimburses grantees for 50 percent of the cost of capital improvements, furniture, fixtures, and equipment at their facilities.

Realizing the need for access to flexible capital for the early-stage micro businesses the NJEDA will open applications for its Main Street Micro Business Loan in early June. The Main Street Micro Business Loan will offer forgivable working capital loans with a two-percent interest rate and no interest and no payments due for the first year. Eligible micro businesses in New Jersey with 10 or fewer full-time employees and no greater than $1.5 million in annual revenues will be able to apply for financing of up to $50,000. The Micro Business Loan will be available to for-profit, non-profit, and home-based businesses with a business location in New Jersey and that have been in operation for at least six months. Funding will be available on a first-come, first-served basis.

Seeking support for improvements, Kosher eatery Crunch Time was reimbursed through the Small Business Improvement Grant funding for improvements made to its facility prior to opening in mid-2020 to transform the eatery known for burgers, sandwiches, soups and more to the Lakewood community.

“We had a vision to transform an old bakery into a lively and attractive place for families to gather and share a meal,” said Crunch Time Owner Eliezer Kadoch. “We are grateful that funding from the NJEDA’s Small Business Improvement Grant was available to support our dream.”

Another success of support through NJEDA funding is Dreamweaver Equine Center, a non-profit in Ringoes which provides equine-assisted activities and social and emotional learning for individuals of all abilities and ages, starting as young as two years old. With support from the NJEDA’s Small Business Improvement Grant, the minority- and woman-owned nonprofit has increased accessibility throughout the property.

“When we opened our doors in 2020, we knew that people were looking for ways to stay connected while staying safe and having fun,” said Dreamweaver Equine Center Founder and Director Ali Cho. “Our family-friendly learning environment has been extremely well-received by the community, and we are so grateful. Improvements made to our facilities with support from the NJEDA will enable our farm to accommodate more individuals seeking opportunities to connect with our horses and farm critters, furthering our mission to promote mental health and wellness in Hunterdon County and all our surrounding communities.”

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about state resources available to New Jersey entrepreneurs and early-stage companies, visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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Grants to Micro Lenders Will Fund Loans and Technical Assistance for Smallest Businesses and Non-Profits

TRENTON, N.J. (February 11, 2022) – The New Jersey Economic Development Authority (NJEDA) Board approved the creation of the Main Street Lenders Grant at its February Board meeting on Wednesday. This pilot product, funded with $15 million from the Main Street Recovery Program, will offer lending grants of up to $1 million to be used by eligible micro business lenders to create new or supplement existing micro business loan products.

The Main Street Lenders Grant is the third of several products the NJEDA is launching under the Main Street Recovery Program. Created under the Economic Recovery Act of 2020 (ERA), which was signed by Governor Phil Murphy in January 2020, the Main Street Recovery Program is a $100 million small business support program that will fund multiple financial assistance products aimed at supporting the growth and success of small businesses in New Jersey. More information is available at https://www.njeda.gov/main-street-recovery-fund/.

New Jersey-based Community Development Financial Institutions (CDFIs) serving New Jersey micro and small businesses, Minority Depository Institutions (MDIs), and other eligible lenders, as defined under the ERA, will be eligible to apply for the Main Street Lenders Grant.

In line with Governor Murphy’s commitment to equity, each approved entity must lend and disburse at least 40 percent of Main Street Lenders Grant funding to businesses and nonprofits in Opportunity Zone-eligible census tracts.

“Even before COVID-19, businesses in underserved communities faced struggles with accessing capital, and NJEDA’s lending partners have long helped to ensure that micro businesses, nonprofits, and other small businesses have access to the capital they need,” said NJEDA Chief Executive Officer Tim Sullivan. “Their role is more vital than ever as businesses continue their recovery from the pandemic. The Main Street Lenders Grant is an essential element of the comprehensive and intentional suite of small business solutions created by the legislature and being rolled out through the ERA under Governor Murphy’s leadership.”

The Main Street Lenders Grant will offer two types of grants to eligible entities. The first is a lending grant. This grant of up to $1 million will be used as funding for new micro business lending products or as supplemental funding for existing micro business lending products.

Recognizing that micro businesses not only need financing, but may also need assistance with applying and qualifying for such financing, the second type of grant that will be made available through this product is a technical assistance grant. This grant will support eligible entities with the costs associated with providing technical assistance to micro businesses to best prepare and position these micro businesses to qualify for micro business loans. The maximum technical assistance grant an eligible entity can receive is 50 percent of their lending grant amount (not to exceed $500,000). Only lenders that receive a lending grant are eligible for the technical assistance grant. The intent is for these grants to enable lenders to provide micro businesses with technical assistance, and then offer a loan product to the micro business upon completion of the technical assistance.

“The NJEDA works with its lending partners to improve access to capital for the smallest businesses, who often face struggles getting the funds they need to build their resilience and position themselves for growth,” said Christina Fuentes, NJEDA’s Managing Director of Community Development. “As we emerge from the pandemic, this grant will extend NJEDA’s reach by expanding the capacity of its lending partners to support more micro businesses by abating barriers to accessing capital.”

Any lender applying for the lending grant must have a demonstrated history of 10 years’ experience serving small and micro businesses, and any entity applying for the technical assistance grant must demonstrate two years’ experience providing technical assistance to micro businesses – either directly, or in collaboration with a technical assistance partner.

Among other requirements, products created by eligible entities using the Main Street Lenders Grant must provide loans of $10,000 to $100,000 for micro businesses that have fewer than 10 full time employees and less than $1.5 million in annual revenue at the time of application. The business must also have a commercial location in New Jersey, which can be a home-based business. Home-based businesses, non-profit organizations, for-profit entities, sole proprietors, and/or startups may be eligible to participate in the program that will be funded through the Main Street Lenders Grant. Complete eligibility requirements for the lending products that will be offered can be found at https://www.njeda.gov/financing-and-incentives/.

The Main Street Lenders Grant serves as a complement to direct funding provided under the Main Street Recovery Program through the recently-launched Small Business Lease Grant and Small Business Improvement Grant.

Signed in January 2021, the ERA creates a package of programs that includes tax credits to incentivize job creation, new construction, and revitalization of brownfields and historic properties; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram and LinkedIn.
 

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TRENTON, N.J. (September 10, 2021) – The New Jersey Economic Development Authority (NJEDA) today released for public feedback a draft rule proposal for the Aspire Program, as established under the New Jersey Economic Recovery Act of 2020 (ERA). The Aspire Program is a gap financing tool to support commercial, mixed use, and residential real estate development projects.

Members of the public are encouraged to review the preliminary rules and submit written feedback through an online form available on the Economic Recovery Act website. The NJEDA will also be hosting two listening sessions for public input on the draft rules.

“As we recover from the COVID-19 pandemic, it is crucial that we support new investments in our communities,” said NJEDA Chief Executive Officer Tim Sullivan. “The Aspire Program will facilitate equitable, community-supported residential and commercial development projects that make our communities vibrant live, work, play destinations that better serve residents and help attract successful companies and top-notch talent.”

Draft Aspire Program rules are available now for review at https://www.njeda.gov/economicrecoveryact/program-specific-feedback/.

Members of the public can also provide input during the NJEDA’s public listening sessions, which are scheduled for the following times:

  • Friday, September 17th at 3:00 p.m.
  • Monday, September 20th at 3:00 p.m.

Members of the public can access the listening sessions at https://us02web.zoom.us/j/83755290991?pwd=M1lzWWdaaGwrdi85MDhuRk4vUVdRUT09; Passcode: Aspire.

Members of the media interested in attending the session or submitting questions are asked to email media@njeda.com.  

In addition to the Aspire Program, the ERA creates a suite of programs that includes tax credits to incentivize job creation, new construction, and revitalization of brownfields and historic properties; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry. The NJEDA will continue to engage the public as new programs and rules are developed.

For more information and to provide written input on the design and implementation of Economic Recovery Act programs, visit https://www.njeda.gov/economicrecoveryact/.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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TRENTON, N.J. (August 16, 2021) – The New Jersey Economic Development Authority (NJEDA) is now accepting applications for commercial projects under the Economic Redevelopment and Growth (ERG) Program. A link to the application and more information is available at https://www.njeda.gov/erg.

The ERG program, which was originally created to address project financing gaps in development projects, previously stopped accepting new applications in June 2019 because its enabling legislation ended. The commercial component of the program reopened for applications this morning with an allocation of $75 million under the Economic Recovery Act of 2020 (ERA).  The residential component began accepting applications in June with a $125 million allocation.

The Commercial ERG Program is an incentive to help developers and businesses address project financing gaps in development or redevelopment projects, including below market development margins or rates of return. Qualified projects can receive an incentive grant reimbursement of up to 30 percent of total eligible project costs. Projects in Atlantic City, Camden, Paterson, Passaic, and Trenton can receive reimbursements up to 40 percent of eligible project costs. Subsidies awarded through the ERG Program are not meant to be a substitute for conventional debt and equity financing. Before applying, applicants must have the balance of their funding identified or in place or be able to demonstrate that any terms of other financing are reasonable.

The new phase of the Commercial ERG Program is subject to the existing ERG regulations and statutes, as amended by the New Jersey Economic Recovery Act of 2020 (ERA) (L. 2021, c. 156) and subsequently by L. 2021, c. 160. Among other requirements, projects must:

  • Be predominantly commercial and contain 100,000 or more square feet of retail, office, and/or industrial uses for purchase or lease.
  • Be located in a qualifying incentive area.
  • Not have commenced any construction at the site of a proposed redevelopment project prior to submitting an application or demonstrate to the NJEDA that the project would not be completed otherwise or is to be undertaken in phases.
  • Demonstrate that a project financing gap exists.
  • Demonstrate the tax revenues the State will realize from the project will be greater than the incentive being provided.

For comprehensive information on eligibility for the extended Commercial ERG Program download the 2021 Commercial Extension Clarification Document at  https://www.njeda.gov/erg.

 All applicants are required to submit an application via the NJEDA’s online application at https://application.njeda.com/. Applications will be accepted on a first-come, first-served basis until funds are exhausted or Thursday, December 30, 2021. More information about the application process is available at https://www.njeda.gov/erg.  

In addition to the expanded ERG Program, the ERA creates and expands a suite of programs that includes tax credits to incentivize job creation, new construction, and revitalization of brownfields and historic properties; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry. The NJEDA will continue to engage the public as new programs and rules are developed. For more information, visit https://www.njeda.gov/economicrecoveryact/.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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TRENTON, N.J. (July 29, 2021) – The New Jersey Economic Development Authority (NJEDA) today announced a $75 million extension of the commercial component of the Economic Redevelopment and Growth (ERG) Program. The Authority also announced that the extended Residential ERG Program, which began accepting applications in June, has been expanded from $50 million to $125 million. More information about the ERG Program is available at https://www.njeda.gov/erg.

“Thanks to the foresight of Governor Phil Murphy and the Legislature in reopening the ERG Program, essential commercial and residential projects throughout New Jersey will be able to move forward while the new programs created by the Economic Recovery Act are under development,” said NJEDA Chief Executive Officer Tim Sullivan. “These programs will drive economic growth and attract new businesses and workers to New Jersey. This is always important, but it is especially crucial now as we begin recovering from the economic impacts of COVID-19.”

The Commercial ERG Program is an incentive to help developers and businesses address project financing gaps in development or redevelopment projects, including below market development margins or rates of return. Qualified projects can receive an incentive grant reimbursement of up to 30 percent of total eligible project costs. Projects in Atlantic City, Camden, Paterson, Passaic, and Trenton can receive reimbursements up to 40 percent of eligible project costs. Subsidies awarded through the ERG Program are not meant to be a substitute for conventional debt and equity financing. Before applying, applicants must have the balance of their funding identified or in place or be able to demonstrate that any terms of other financing are reasonable.

The new phase of the Commercial ERG Program is subject to the existing ERG regulations and statutes, as amended by the New Jersey Economic Recovery Act of 2020 (ERA) (L. 2021, c. 156) and subsequently by L. 2021, c. 160. Among other requirements, projects must:

  • Be predominantly commercial and contain 100,000 or more square feet of retail, office, and/or industrial uses for purchase or lease.
  • Be located in a qualifying incentive area.
  • Not have commenced any construction at the site of a proposed redevelopment project prior to submitting an application or demonstrate to the NJEDA that the project would not be completed otherwise or is to be undertaken in phases.
  • Demonstrate that a project financing gap exists.
  • Demonstrate the tax revenues the State will realize from the project will be greater than the incentive being provided.

Comprehensive information on eligibility for the extended Commercial ERG Program is available at https://www.njeda.gov/erg.

The NJEDA will begin accepting applications for the extended Commercial ERG Program at 12:00 p.m. EDT on Monday, August 16, 2021. All applicants will be required to submit an application via the NJEDA’s online application at https://application.njeda.com/. Applications will be accepted on a first-come, first-served basis until funds are exhausted or Thursday, December 30, 2021. More information about the application process is available at https://www.njeda.gov/erg.  

Potential applicants can submit questions about the Commercial ERG Program and application to ERGextension@njeda.com until 11:59 p.m. EDT on Sunday, August 8, 2021. Responses to these questions will be posted to a Frequently Asked Questions (FAQ) section on https://www.njeda.gov/erg.

In addition to the expanded ERG Program, the ERA creates and expands a suite of programs that includes tax credits to incentivize job creation, new construction, and revitalization of brownfields and historic properties; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry. The NJEDA will continue to engage the public as new programs and rules are developed. For more information, visit https://www.njeda.gov/economicrecoveryact/.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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Offers Virtual Listening Sessions and Online Feedback Submission Opportunities 

TRENTON, N.J. (April 1, 2021) – The New Jersey Economic Development Authority (NJEDA) today released a draft of the rules and targeted industry definitions under which the new Emerge business tax incentive program will be administered. Members of the public are encouraged to review the preliminary rules and industry definitions and provide feedback through one of three virtual Public Listening Sessions hosted by the Authority in April, or to submit written feedback through an online form available on the Economic Recovery Act website. The Emerge program is expected to begin accepting applications in late May.  

Emerge is part of the suite of programs created under the Economic Recovery Act of 2020 to address the ongoing economic impacts of the COVID-19 pandemic and build a stronger, fairer New Jersey economy. Emerge will drive job creation by making per-job tax credits available to projects that create good-paying jobs in the State’s priority sectors. To ensure a strong return on investment for taxpayers, projects that receive Emerge credits will need to demonstrate a net positive economic benefit of at least 400 percent in most cases.  

“The New Jersey Economic Recovery Act of 2020 creates a suite of tools to create impactful, long-term, equitable economic growth. Incorporating public input is part of the robust engagement that will help ensure the Emerge program is created and implemented in a transparent manner that considers the needs of all stakeholders and communities and benefits all New Jerseyans,” said NJEDA Chief Executive Officer Tim Sullivan. “Everyone is encouraged to share their ideas and concerns on the rules that will govern programs administered under the Economic Recovery Act.” 

Draft Emerge Program rules are available now for review in advance of the Public Listening Sessions. Please see https://www.njeda.gov/njeda_economic-recovery-act_emege-program-draft-rules-and-industry-definitions_04-01-2020_public/.  

Public Listening Sessions are scheduled for: 

  • Thursday, April 8th, 2021 at 5:00 p.m. 
  • Monday, April 12th, 2021 at 3:00 p.m. 
  • Wednesday, April 14th, 2021 at 3:00 p.m. 

Sessions are expected to last approximately two hours and can be accessed at tinyurl.com/xyr2k65r – Passcode: Emerge. 

Members of the media interested in attending a session or submitting questions are asked to email media@njeda.com. 

Members of the public can also submit written feedback on the Emerge Program through the webpage www.njeda.gov/EconomicRecoveryAct from April 5th through April 16th.   

In addition to Emerge, the Economic Recovery Act creates a suite of programs that includes tax credits to incentivize job creation, new construction, and revitalization of brownfields and historic properties; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry. The NJEDA plans to continue to engage the public as new programs as rules are developed. Members of the public are also encouraged to provide general written input on the new programs via the NJEDA’s online portal.  

For more information and to provide written input on the design and implementation of Economic Recovery Act programs, visit https://www.njeda.gov/economicrecoveryact/. 


About NJEDA 

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness. 
 

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram and LinkedIn.  
   

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TRENTON, N.J. (March 2, 2021) – The New Jersey Economic Development Authority (NJEDA) today announced plans to reopen the residential component of the Economic Redevelopment and Growth (ERG) Program utilizing $50 million in tax credits designated in the Economic Recovery Act of 2020. NJEDA will start accepting applications no earlier than June 1, 2021 to provide at least 90 days of preparation time for potential applicants. The ERG program, which was originally created to address project financing gaps in development projects, had previously stopped accepting new applications in June 2019.

The Economic Recovery Act was signed by Governor Phil Murphy on January 7, 2021 to address the ongoing economic impacts of the COVID-19 pandemic and build a stronger, fairer New Jersey economy.

The new phase of the ERG program will be administered based on pre-existing ERG regulations and statutes, as amended by the Economic Recovery Act, which added new prevailing wage and minimum wage requirements. NJEDA anticipates issuing a solicitation (or call for applications) document with further information about this process in early April. For additional information and detailed eligibility requirements, visit https://www.njeda.gov/economicrecoveryact/.

“The extension of the residential portion of the ERG Program will support investment in projects that offer attractive housing options for families while revitalizing surrounding neighborhoods,” said NJEDA Chief Executive Officer Tim Sullivan. “The inclusion of $50 million for the ERG program by Governor Murphy and the Legislature will help advance projects that are ready to move forward now, while the new programs created by the Economic Recovery Act are taking shape.”

Under the Economic Recovery Act, residential ERG projects can receive tax credits of up to 30 percent of total eligible project costs. Projects in five cities — Atlantic City, Camden, Paterson, Passaic, and Trenton – can receive tax credits up to 40 percent of eligible project costs. ERG tax credits are not meant to be a substitute for conventional debt and equity financing, and applicants should generally have their primary debt financing in place before applying.

Under the Economic Recovery Act, the Aspire program will serve as a successor to the ERG program, offering a gap financing tool to support commercial, mixed use, and residential real estate development projects. For more information about Aspire and other programs created by the Economic Recovery Act, please visit https://www.njeda.gov/economicrecoveryact/.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
 
To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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New website provides opportunity for input on new incentives package

TRENTON, N.J. (February 17, 2021) – The New Jersey Economic Development Authority (NJEDA) announced today that it has launched a website to provide information on the recently-signed Economic Recovery Act of 2020 and collect input from the public on the implementation of the package of tax incentive, financing, and grant programs that will be created under the Act.

Governor Phil Murphy signed the Economic Recovery Act into law on January 7, 2021 to address the ongoing economic impacts of the COVID-19 pandemic and build a stronger, fairer New Jersey economy. Programs outlined in the law include tax credits to incentivize job creation, new construction, and revitalization of brownfields and historic properties; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry.

“The New Jersey Economic Recovery Act of 2020 signed by Governor Murphy is critical legislation that creates valuable new tools for driving long-term, equitable economic growth. As we develop these important new programs, we will to do so with a commitment to transparency, equity, and faithful stewardship of taxpayer dollars at the center of this effort,” said NJEDA Chief Executive Officer Tim Sullivan. “We welcome all New Jerseyans to be part of this process by submitting constructive input on how to ensure new programs created through the Economic Recovery Act are structured and administered in a manner that drives opportunities for all residents and communities.”

The portal will allow any member of the public to provide input on how the Authority will operationalize various aspects of the new programs, such program eligibility requirements, net benefit and cost benefit analyses, and community benefit agreements. The site will also allow members of the public to share their thoughts on how NJEDA can make the programs more transparent. This process precedes and is separate from the NJEDA’s formal procedure to adopt short-term rules, which will be effective immediately as authorized under the Economic Recovery Act, and the procedure for long-term rules which will provide another opportunity for comment on rules and regulations for each new program in accordance with the Administrative Procedures Act.

All comments submitted through this portal are subject to New Jersey’s Open Public Records Act.  Visit www.njeda.gov/economicrecoveryact for more information and to submit comments.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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TRENTON, N.J. (February 10, 2021) – The New Jersey Economic Development Authority (NJEDA) Board of Directors today approved the implementation of new accommodations for businesses that had previously been approved for Grow New Jersey (Grow NJ) awards. These accommodations were created by the Economic Recovery Act of 2020 (ERA), signed by Governor Phil Murphy on January 7, 2021, which amended the Grow NJ Act to provide flexibility to businesses that had been impacted by the changed economic and health circumstances due to the COVID-19 Health Emergency.

“Businesses of all sizes have endured innumerable challenges caused by the COVID-19 outbreak. Governor Murphy’s holistic, proactive response has addressed many of those challenges, but businesses still need flexibility to adapt to the new circumstances the pandemic has created,” said NJEDA Chief Executive Officer Tim Sullivan. “Providing businesses that were approved for Grow NJ tax credits that have had to adjust their plans to comply with public health guidance some additional flexibility will enable them to follow through on their commitments to New Jersey’s workers and communities without jeopardizing the incentives for which they were approved.”

The amendments to Grow NJ included in the ERAinclude:

  • A business may choose to waive its obligations under the incentive agreement for the 2020 and 2021 tax periods and instead extend the incentive agreement by a corresponding period of time.
  • A business may terminate its Grow New Jersey agreement due to the COVID-19 pandemic any time before December 31, 2022 without the NJEDA recapturing previously distributed tax credits.
  • A business may amend its Grow NJ agreement to reset its employment requirements starting with 2020 provided the incentive award is recalculated and reduced to reflect the lower employment.

To verify that companies requesting to terminate their Grow NJ awards under the new COVID-related provision are doing so due to the COVID-19 public health emergency, NJEDA staff will require the applicant to submit an explanation of the impact of the public health emergency. Additionally, for all these new ERA provisions, the CEO or an equivalent officer must certify that no events of default have occurred prior to EO 103 (Health Emergency) in March 2020 and that the facility that was approved for tax credits remains operational. Fees for these amendments will follow existing Grow NJ program regulations.

Applicants seeking additional information about the Grow NJ modifications should contact NJEDA Customer Care at CustomerCare@njeda.com.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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