New pilot program expands Main Street Recovery suite to offer grants up to $50,000 to reimburse closing costs after purchase of a commercial business property

TRENTON, N.J. (February 20, 2024) – The Board of the New Jersey Economic Development Authority (NJEDA) has approved the creation of a pilot program that will help boost small business owners’ liquidity following the purchase of a commercial property. Approved at the NJEDA’s Board meeting last week, the Main Street Acquisition Support Grant will reimburse applicants for a portion of closing costs after they have purchased an existing New Jersey commercial property from which their small business will operate. The closing must have taken place after the application was open to the public and the grant application date must be no later than one year from date of closing.  

“In many instances, ownership of a commercial property can be a game changer for a small business owner and the Acquisition Grant is a powerful addition to New Jersey’s suite of Economic Recovery Act Main Street programs designed for small businesses,” said NJEDA Chief Executive Officer Tim Sullivan. “This program will help to achieve Governor Phil Murphy’s goal of supporting the thousands of New Jersey small businesses that are fortifying our communities and creating jobs that support New Jersey families.”

As part of the Main Street Recovery Fund, created under the Economic Recovery Act of 2020 (ERA), the program will be funded initially with $5 million to provide grants of up to $50,000, limited to one grant per business per Employer Identification Number, and for one eligible location. Based on demand, the program may be expanded to $10 million.

“The Main Street Acquisition Grant can help to position small businesses more securely post-purchase by offsetting the costs associated with acquiring a permanent location,” said Christina Fuentes, NJEDA Vice President of Community and Business Development. “This new program extends the power of the NJEDA to help small businesses grow and thrive in their communities.”

Grants will be based off the closing documentation, such as HUD-1 statements, closing disclosures, or settlement statements (may be in the name of the applicant or real estate holding company associated with the applicant). The small business must be the applicant for this grant and occupy at least 1,000 square feet of the building purchased. All loans must have been closed on through an arm’s length commercial transaction with a conventional lender. For more information on the Main Street Acquisition Support Grant visit: https://www.njeda.gov/main-street-acquisition-support-grant/.

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 NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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Working capital loans with competitive interest rates and no collateral requirement will support New Jersey small businesses

TRENTON, N.J. (November 28, 2023) – The New Jersey Economic Development Authority (NJEDA) today announced the opening of the NJ Capital Access Fund. The fund will leverage Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) to offer a working capital loan product that will better serve New Jersey-based small businesses. The NJEDA-designated fund manager, Calvert Impact, will utilize and match NJEDA’s $50 million investment with State Small Business Credit Initiative (SSBCI) funding for a $100 million fund that supports a New Jersey loan participation program. The SSBCI funds, matched with raised private capital, will be used to purchase up to 80 percent of every eligible loan by participating community lenders.

“The NJ Capital Access Fund serves as a testament to Governor Phil Murphy’s unwavering commitment to supporting New Jersey small businesses by increasing access to much-needed capital in the wake of the pandemic and recent inflationary pressures,” said NJEDA Chief Executive Officer Tim Sullivan. “This program, which is being administered by Calvert Impact on behalf of the NJEDA, will bolster community lending infrastructure and provide a streamlined path for small businesses in need of loans, helping revitalize a core component of our state’s diverse economy.”

The NJ Capital Access Fund was designed by the NJEDA to meet the needs of small businesses and nonprofits throughout New Jersey and to help serve a larger amount of New Jersey businesses by leveraging a technology platform through the Community Reinvestment Fund, USA. The Capital Access Fund will work alongside six CDFI partners to offer working capital loans up to $250,000 to businesses that have been operating for at least 12 months, with a revenue of $10 million or less and fewer than 50 employees. The loan program will offer flexible features, including no minimum credit score or collateral requirements, terms from 36 to 60 months, low fees to borrowers, and competitive fixed interest rates. Full details, including eligibility requirements and pre-applications, can be found here.   

Calvert Impact is a nonprofit organization primarily focused on financing sectors ignored by mainstream capital markets and has been supporting community and economic development organizations for nearly 30 years. With proven experience in the creation of financial products that meet the specific needs of underserved and underbanked communities, Calvert Impact’s work supported over 231,000 small businesses in 2022, which have created or maintained more than 905,000 jobs.

“Small businesses across New Jersey deserve access to capital to support their continued growth,” said Beth Bafford, Calvert Impact’s Vice President of Strategy. “We are excited to partner with NJEDA and our CDFI partners to bring this innovative public-private partnership to New Jersey’s smallest businesses, which are vital to the character of their communities and the vibrancy of their local economies.”

Financing for the NJ Capital Access Fund is allocated from $255 million in federal SSBCI capital allotted to the State of New Jersey by the United States Department of the Treasury. The NJEDA is utilizing the funding to create six programs that provide financial assistance to small and micro businesses in New Jersey. More information on SSBCI-funded programs can be found here.

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 NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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Funded through the State Small Business Credit Initiative, funds will support investments into New Jersey companies  

TRENTON, N.J. (May 12, 2023) – The New Jersey Economic Development Authority (NJEDA) named several firms to manage and deploy capital for three unique investment strategies funded through the federal State Small Business Credit Initiative (SSBCI). These three funds are NJEDA’s Blended Capital Fund, Life Science/Health Care Fund, and Socially & Economically Disadvantaged Individuals (SEDI) Seed Fund. In February, the NJEDA issued Notices of Investment Opportunities (NIOs) seeking investment managers for each fund.

“Since the pandemic, my Administration has been working to ensure small business owners have the capital to grow their businesses and achieve success,” said Governor Phil Murphy. “The federal funding awarded to New Jersey will help support small and early-stage businesses across the state and propel our economy forward.”

“Together, these three funds will help position New Jersey businesses for long-term growth and success,” said NJEDA Chief Executive Officer Tim Sullivan. “Governor Murphy’s economic development strategy has been centered on connecting entrepreneurs and small business owners with the capital they need to succeed in an equitable and inclusive manner. I’m thankful to Senators Menendez and Booker for securing this federal funding which will have a lasting impact on small businesses across New Jersey.”

The fund managers will be responsible for raising, or contribute to the raising of, private capital, managing the fund’s day-to-day operations, and developing and maintaining a pipeline of prospective, New Jersey-based small businesses that can benefit from the fund.

In December, the U.S. Department of Treasury approved New Jersey’s SSBCI application and awarded the NJEDA $255 million to create programs that will provide financial and technical assistance to small and micro businesses, and early-stage, innovation-focused companies located across the state. SSBCI is a federal program designed to catalyze lending and investment of private capital into small businesses, particularly those that would not otherwise have access to funding.

“These three funds will provide small and early-stage businesses in New Jersey with the financial resources and support they need to fulfill their potential and realize their dreams while boosting the state’s economy,” said U.S. Senator Bob Menendez (D-N.J.). “They will also ensure greater access to credit and capital for businesses across the state of New Jersey, including those located in underserved areas and led by diverse individuals, which I have long championed in the Senate. I am proud to have delivered this funding to New Jersey to keep moving our state forward as an innovator and job creator.”

“These funds will spark growth and empower the ingenuity of New Jersey’s small businesses, which are the backbone of our economy and our communities,” said U.S. Senator Cory Booker (D-N.J.). “Senator Menendez and I work every day to bring resources home to New Jersey, and I’m excited to see NJEDA disburse these federal dollars in a way that helps our small businesses thrive.”

The NJEDA announced investment managers for the following three funds:

  • Blended Capital Fund:

Funded at $50 million, the Blended Capital Fund will co-invest SSBCI funds in an investment vehicle that supports the purchase of eligible loans from Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) serving New Jersey, allowing them to do more lending. The fund will be managed by Calvert Impact. Calvert Impact will leverage and utilize the investment by NJEDA in the Blended Capital Fund to create and administer a NJ Loan Participation program to support New Jersey-based small businesses with working capital loans.

  • Life Science/Health Care Fund:

A portion of the $60 million Life Science/Health Care Fund will be managed by three firms and support early-stage New Jersey life science and health care businesses, including companies in biotechnology, pharmaceuticals, and medical devices.

$12.5 million will be managed by New York City-based Signet Healthcare Management LLC, which was founded in 1998. $7.5 million will be managed by Tech Council Ventures LLC, which is based in Summit. Lastly, Syridex Bio LLC, headquartered in Princeton, will manage up to $5 million of the fund.

  • SEDI Seed Fund:

The $20 million SEDI Fund will be managed by Include Venture Partners, LLC and Gener8tor Management, LLC. The firms will support seed and early-stage startups substantially located in New Jersey with SEDI owners. For purposes of the fund, the basis for eligibility can be geographic, demographic, or socioeconomic.

Include Venture Partners will manage up to $15 million. The firm is focused on investing in diverse-led undervalued, outperforming funds and founders, with a focus on ESG and Sustainability. Gener8tor Management, LLC will manage up to $5 million of the fund. Since Gener8tor’s inception in 2012, the firm has expanded its startup and small business venture funds and accelerators across 41 cities, 20 states and two countries. Due to the firm’s substantial international resources, it is able to identify target opportunities, provide meaningful support to its portfolio companies, and administer their funds with a high degree of acumen.

“The investment managers we selected will be able to leverage their expertise and multiply the impact our dollars will have on businesses across the state,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello. “Under Governor Murphy’s leadership, New Jersey’s economy has been fueled by making strategic investments in our early-stage, innovative small businesses.”

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 NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.com and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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Over 2,300 small businesses have received support through the Main Street Recovery Program

TRENTON, N.J. (May 1, 2023) – In recognition of National Small Business Week (April 30 – May 6,) the New Jersey Economic Development Authority (NJEDA) today announced it has issued $85 million in grants and loans to over 2,300 small businesses since the launch of the Main Street Recovery Program in October 2021. Created under Governor Murphy’s Economic Recovery Act (ERA) of 2020, the Main Street Recovery Program provides a comprehensive suite of products designed to support New Jersey small businesses.

“From Cape May to Sussex County, small businesses serve as the backbone of New Jersey’s economy, and especially during the COVID pandemic, supporting our main streets was an essential component of ensuring the sustained vibrancy of our communities and their economic resiliency.” said Governor Phil Murphy. “Under the Main Street Recovery Program, New Jersey continues to invest in our small businesses and their owners, ensuring that our state and local economies continue to thrive today, tomorrow, and for years to come.”

The NJEDA also announced three webinars that will take place during National Small Business Week to highlight resources the NJEDA and other state partners offer to support small business owners. A Spanish-language webinar will be held today, Monday, May 1. A webinar for North Jersey small businesses will be held on Tuesday May 2, and one for Central and South Jersey businesses will be held on Thursday, May 4.

Gov. Murphy’s Fiscal Year 2024 budget proposal includes an additional $50 million for the Main Street Recovery Program.

“Under Governor Murphy’s leadership, New Jersey continues to prioritize small businesses by providing them with a suite of products designed to ensure that they have the tools necessary to succeed,” said NJEDA Chief Executive Officer Tim Sullivan. “When the pandemic hit, the NJEDA, under the Economic Recovery Act, worked diligently to craft a suite of products that injected millions of dollars of capital into New Jersey’s main streets. Today, the Main Street Recovery Program has supported and continues to assist thousands of small business owners expand and thrive.”

The Main Street Recovery Program is budgeted to provide $150 million to support the growth and success of small businesses as they emerge from the COVID-19 pandemic. Since the program launched in 2021, 330 small businesses have been approved for the Small Business Lease Grant, which provides funding to help businesses who leased new space or expanded their commercial space. 1,250 small businesses have been approved for the Small Business Improvement Grant, which reimburses grantees for 50 percent of the cost of capital improvements, furniture, fixtures, and equipment at their facilities.

In June 2022, the NJEDA launched the Main Street Micro Business Loan to help early-stage micro businesses access up to $50,000 in financing. Since it launched, 735 New Jersey micro businesses, which typically face hardships in accessing traditional financing, have received a combined $35.4 million.

Morph Mentoring, an organizational development corporation located in Neptune, Monmouth County, received the Small Business Lease Grant, which helped it maintain its original location and open a second location. With the Micro Business Loan, Morph Mentoring increased its marketing and improved its online presence.

“I am honored and very appreciative of all the help Morph Mentoring received from the NJEDA,” said Chelsey Brunson, Owner and CEO of Morph Mentoring. “With this incredible funding, we have been able to sustain and expand our business significantly. From doubling our staff to opening a second location, this would not have been possible were it not for the NJEDA support.”

In Marlton, Burlington County, Zed’s Beer is using a Micro Business Loan to invest in larger contracts with suppliers, allowing the company to manage lingering supply chain shortages. The South Jersey brewery was also able to use the Small Business Improvement Grant to offset the cost of creating an outdoor space to accommodate patrons during the pandemic. Zed’s was also able to keep its entire staff on payroll during the pandemic and purchase PPE with the help of NJEDA COVID-relief programs.

“Access to more working capital lets us make better deals than we would have been able to make with tighter cash flow, helping keep our prices down, and maintaining similar margins to what we had pre-COIVD,” said Lori White, co-founder of Zed’s Beer. “We are grateful that, with the support from the NJEDA, we were able to keep our staff, grow our business, and keep serving our loyal customers across South Jersey.”

With the Small Business Improvement Grant, the Micro Business Loan, and COVID-relief programs, Arepa Express in Passaic was able to grow its business, avoid staff layoffs, and continue paying its rent and utilities. Additionally, Arepa Express purchased new kitchen equipment and made an outdoor seating area for guests.

“Without help from the NJEDA, it would have been very difficult to continue running my business,” said Jenny Zapata, owner of Arepas Express. “With their support, we were able to keep our doors open and continue serving our community. I am very grateful for the NJEDA assistance we received.”

The NJEDA recently launched two additional initiatives under the Main Street Program. The Small Business E-Commerce Support Program opened in March 2023 to help restaurants, retailers, and personal care businesses that rely on in-person transactions implement the technological capabilities they need to accommodate pandemic-related health guidelines. This product offers free e-commerce and digital marketing consulting services that are performed for small businesses in the three aforementioned industries that operate from a commercial location. The NJEDA has partnered with seven consultants to assist eligible small businesses with services such as website development and optimization, online ordering making appointments electronically, and digital marketing plans. More information is available here.

In November, the NJEDA announced the awarding of over $11 million to eight lenders and financial institutions through its Main Street Lenders Grant to expand their capacity to support small businesses. The Main Street Lenders Grant provides grants to eligible Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), and other entities that have at least 10 years of experience lending to small and micro businesses. The Main Street Lenders Grant offers eligible lenders grants of up to $1.5 million each, with up to $500,000 reserved for technical assistance needs. Approved entities are providing flexible and low-cost financing through working capital term loans to qualified micro businesses, as well as technical assistance to help micro businesses access capital.

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 NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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The grant program will support hundreds of micro businesses through low-interest financing

Trenton, N.J. (November 1, 2022) – The New Jersey Economic Development Authority (NJEDA) today announced that it has approved over $11 million to eight lenders and financial institutions through its Main Street Lenders Grant. The Main Street Lenders Grant, which launched in July, awards grants to eligible Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), and other entities that have at least 10 years of experience lending to small and micro businesses.

The Main Street Lenders Grant, which was created under the New Jersey Economic Recovery Act of 2020 and funded with $15 million from the Main Street Recovery Program, offers eligible lenders grants of up to $1.5 million each, with up to $500,000 reserved for technical assistance needs. Entities approved for the grant will provide flexible and low-cost financing through working capital term loans to qualified micro businesses, as well as technical assistance to help micro businesses access capital.

“The Main Street Lenders Grant is another testament to Governor Phil Murphy’s commitment to equity and inclusion and supporting small businesses to ensure economic prosperity in New Jersey,” said NJEDA Chief Executive Officer Tim Sullivan. “Forty percent of the funding to support loans will be set aside for micro businesses in Opportunity Zone-eligible census tracts, allowing underserved areas the chance for continued growth.”

To date, the product has approved grant funding for the following lenders:

  • Elizabeth Development Company of New Jersey will create a Post COVID Rebound Program (PCRP). The PCRP will offer loans of between $10,000 and $30,000 for existing or startup micro businesses in Elizabeth, Plainfield, and Hillside Township.
  • Pursuit Lending (formerly New York Business Development Corporation Local Development Corporation) will create a New Jersey Main Street Fund. The New Jersey Main Street Fund will offer loans of between $10,000 and $100,000 to low- and moderate-income and minority/women business enterprises in Opportunity Zones.
  • Union County Economic Development Corporation (UCEDC) will create the Small Business Assistance Loan (SBAL) to offer loans ranging from $10,000–$15,000 at zero-percent interest and a five-year term for eligible micro businesses. This UCEDC program will require no collateral.
  • The Enterprise Center Capital Corporation will utilize funding to create a New Jersey Acceleration Fund to support micro businesses in Camden and South Jersey.
  • Eastern American Certified Development Company will create three micro loan products: 1) Fast and Easy Loan Program up to $10,000. 2) Growing Loan Program for up to $50,000 in funding. 3) Opportunity Loan Program for up to $100,000 in funding.
  • Greater Newark Enterprises Corporation will use the lending grant to support its Newark Entrepreneurs of Color Fund and offers loans from $10,000 to $50,000 for unbankable businesses.
  • Cooperative Business Assistance Corporation (CBAC) will use the grant to provide working capital loans from $10,000 to $100,000 at a five-percent interest rate to qualified entities with a credit score at 650 or below.
  • Regional Business Assistance Corporation (RBAC) will use funding to support existing businesses with capital loans ranging from $10,000 to $100,000. Each of RBAC’s loans will carry a two percent interest rate with a seven-year term.

“Local lenders were paramount to our ability to reach and support New Jersey’s smallest businesses during the COVID-19 pandemic and they remain vital partners in our efforts to build a stronger, fairer, and more equitable economy,” said NJEDA Program Manager – Business Banking Naimah Marshall. “Through the Main Street Lenders Grant, we are enhancing our ability to connect micro businesses that often have difficulty accessing traditional financing with the resources they need to succeed.”

Micro businesses can contact any of the lenders identified above and apply for financing directly with them. 

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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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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Sometimes, a shock as damaging as a pandemic has a beneficial underside for the economy. For example, we’ve seen a surge in entrepreneurship emerge from the COVID-19 economic shock, as evident in a proliferation of applications to start new businesses. The chart below shows the rate of “high-propensity” business applications filed in New Jersey. As the chart shows, the pace of these applications increased from a rate of approximately 3,000 per month pre-pandemic to near 4,000 now – up more than 30%. The high propensity distinction is important, as these are applications for new businesses likely to be incorporated and create positions for new workers, as separate from applications for businesses likely to be unincorporated sole proprietorships. In this way, these businesses are likely to provide the main sources of income for their owners and provide employment for others.

The cause of this jump in business creation is up for dispute. From our lens, a mix of jobs lost and abundant opportunities to innovate encouraged many people to venture out on their own instead of relying on the status quo. The benefit of this entrepreneurship wave is likely self-evident, but it’s worth noting that entrepreneurship benefits the economy as a whole as well as the individual entrepreneurs. For the economy, entrepreneurship drives the evolution necessary to keep an economy growing. For individuals, entrepreneurship and the value created therein generates economic opportunities and wealth.

So, who are all these new entrepreneurs? For New Jersey, the evidence suggests a growing share of these entrepreneurs in New Jersey are Black. There are few datasets that provide information on business ownership by race, and the ones that do exist tend to release data with a one-to-two-year lag. Thus, if we want to examine in real time what is happening to business ownership by race, we need to rely on proxies of business ownership.

To this end, we follow a method used by Dr. Robert Fairlie[1] with University of California, Santa Cruz, to estimate small business ownership by race using Current Population Survey (CPS) microdata on self-employment. The CPS is a monthly nationwide survey of individuals that includes questions on labor market status, such as employed or unemployed and, if employed, whether the individual is salaried worker or self-employed. As did Fairlie, we use data on self-employment as a proxy for small business ownership. Fairlie reasoned business ownership could be estimated this way because, if a person is a small business owner, that person is going to identify as self-employed. Moreover, we only include self-employment where it is indicated as the primary employment source. Many people are employed in a wage and salary position and own a business as a secondary source of income, and we do not wish to include these estimates in our dataset.

The chart below shows the growth of small business ownership by race, indexed at the 2019 level = 100. We are forced to smooth the data using 12-month moving averages as the data are not seasonally adjusted and are very volatile on a month-to-month basis.

As the above chart shows, Black people were much more likely than the rest of the population to suffer a loss of small business at the start of the pandemic. But since that time, Black business ownership has surged. Relative to the 2019 level, Black business ownership is up approximately 25%. This compares to around 4% for the rest of the population. This comparison between Black and non-Black self-employment is further demonstrated in the chart below, which shows the change in self-employment in 2021 relative to 2019. Of the approximately 20,800 increase in self-employment, almost 40 percent is from Black residents. Given Black residents account for approximately 20 percent of New Jersey’s labor force, the 40 percent share of self-employment shows Black residents are taking up a surprisingly large share of recent new business creation.

The evidence of growing entrepreneurship in the Black community is a welcome sign. But, in order for this growth in entrepreneurship to yield long-term results, these small business owners often require outside sources of financial capital to invest in and grow their ventures. Small businesses are usually strapped for cash – most of the money earned goes into paying for the operating costs of the businesses, leaving little for investment. For instance, the Census Bureau’s Small Business Pulse[2] shows that, for New Jersey, the median business has less than three months of free cash on hand. This clearly isn’t enough to invest in and grow the business.

Unfortunately, access to credit is where the Black community has had one of its biggest challenges with entrepreneurship and business cultivation. The New Jersey Economic Development Authority (NJEDA) has been working with the Federal Reserve to understand gaps in credit access for minority small business owners. Our research shows Black people and other people of color are less likely to have access to credit. These disparities are about more than simply being banked or unbanked – there exists more of a middle ground impacted by the strength of relationships and availability of collateral. As part of this work, we will be meeting with credit organizations, such as community banks and community development financial institutions (CDFIs), to better understand how they approach business with minority small business owners and see where gaps in credit access might be closed.

Moreover, in an effort to close some of these gaps, the NJEDA provides credit and grants to small businesses that might not be able to secure traditional bank financing. Our small business products include improvement grants, lease assistance, direct loans and loan guarantees and participations, as well as direct loans to other credit providers such as CDFIs to help lever credit products. The NJEDA also partners with the African American Chamber of Commerce of New Jersey to offer a Small Business Bonding Readiness Assistance Program to help businesses position themselves to bid on government contracts. The NJEDA wants to ensure that all New Jersey businesses have the resources necessary to expand and that our communities have a healthy climate for growth. As the evidence shows a jump in Black entrepreneurship, our hope is that the work being done with the Federal Reserve and through our programs will support access to credit so these businesses can thrive.

[1] See Fairlie, R. (2020). The impact of COVID‐19 on small business owners: Evidence from the first three months after widespread social‐distancing restrictions. Journal of economics & management strategy, 29(4), 727-740.

[2] See January 9 results for New Jersey at https://portal.census.gov/pulse/data/

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. (October 18, 2021) – Applications for the New Jersey Economic Development Authority (NJEDA) Small Business Lease Grant open Wednesday, October 20th, at 9:00 a.m.

The Small Business Lease Grant provides grants up to 20 percent of annual lease payments to small businesses and nonprofits entering new or amended market-rate leases for at least 250 square feet of street-level space. Applications will be accepted on a rolling basis until all funds are awarded.

More information and the application are available at https://www.njeda.gov/small-business-lease-grant/.

Please Note: This announcement is for the Small Business Lease Grant only, which is a separate program from the Small Business Improvement Grant. Applications for the Small Business Improvement Grant will launch at a later date, which the NJEDA will communicate to the public on its website and through social media accounts prior to application launch.

Program Details

The Small Business Lease Grant is a $10 million program designed to revitalize downtowns and main streets by offsetting a portion of the cost associated with businesses and nonprofits leasing street-level space.

Through the program, eligible businesses and nonprofits that are entering new or amended market rate leases can receive two grants totaling up to 20 percent of annual lease payments. The first grant will be paid to entities immediately after they are approved for the program and execute the grant agreement, and the second grant will be paid after the first year of the lease.

To qualify, businesses and nonprofits must enter a new lease, lease amendment, or lease extension that includes at least 250 square feet of street-level office, commercial, or retail space. The applicant must also commit to remaining in the leased space for at least five years. Complete eligibility criteria are available at https://www.njeda.gov/small-business-lease-grant/.

In line with Governor Phil Murphy’s commitment to a stronger, fairer recovery from the COVID-19 pandemic, 40 percent of the $10 million allocated to the Small Business Lease Grant will be targeted to businesses and nonprofits in census tracts that were eligible to be designated as Opportunity Zones. This targeting will help to ensure resources are available to minority- and women-owned entities and communities that have faced disproportionate burdens as a result of COVID-19.

The Small Business Lease Grant is the first of several programs the NJEDA will launch in the coming months under the Main Street Recovery Program. Created under the New Jersey Economic Recovery Act of 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 about the Main Street Recovery Program is available at https://www.njeda.gov/main-street-recovery-fund/.

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) and New Jersey Business and Industry Association (NJBIA) are hosting an informational webinar for businesses and nonprofits interested in applying for the new $10.5 million Henri/Ida Business Assistance Grant Program. The webinar is being offered in partnership with the Chamber of Commerce of Southern New Jersey, New Jersey Chamber of Commerce, Commerce and Industry Association of New Jersey, Statewide Hispanic Chamber of Commerce of New Jersey, and the African American Chamber of Commerce of New Jersey.

The webinar will take place at 9:00 a.m. on Tuesday, September 14th, 2021. Businesses interested in the program can register here.

The application for the Henri/Ida Business Assistance Grant Program will open at 9:00 a.m. on Friday, September 17th, 2021. More information and materials to help small businesses and nonprofits prepare to apply are available at https://www.njeda.gov/henri-ida-relief.

Program Overview

The Henri/Ida Assistance Grant Program is designed to assist businesses and non-profits impacted by the remnants of Hurricanes Henri and Ida. 

The Program will provide grants from $1,000 up to $5,000 in the form of reimbursement of August rent or mortgage.

The Program is open to New Jersey-based small businesses and non-profits that have up to 50 full-time equivalent employees as reported on their last WR-30 form (Q2 2021) with the NJ Department of Labor and Workforce Development (DOL) and have a commercial location in the State that suffered physical damage as a result of the remnants of Hurricanes Henri and/or Ida. Landlords and home-based businesses are not eligible for grant funding through this program. 

The NJEDA will launch an online application for the program at 9:00 a.m. on Friday, September 17th at https://www.njeda.gov/henri-ida-relief/. Applications will be reviewed on a first come, first served basis.

For more information on the Henri/Ida Assistance Grant Program, visit https://www.njeda.gov/henri-ida-relief/.


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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