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.com 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.com 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.com/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.com/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.com 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.com/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.com/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.com/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.com 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.com/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.com/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.com/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.com and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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TRENTON, N.J. (September 8, 2021) – The New Jersey Economic Development Authority (NJEDA) announced today that it will host a series of three virtual small business resource workshops to present information on available resources to support the growth of the state’s small businesses.  The workshops will be held during National Small Business Week (NSBW), which runs from September 13 to 17 and will connect business owners with the people and information they need to start or grow their businesses with building their long-term resilience in mind as we emerge from the COVID-19 pandemic.

The hour-long workshops will offer small businesses, startups, and nonprofits an opportunity to connect with government representatives, small business advocates, and financial lenders and advisors who will offer their expertise on areas of interest that include: financial resources; how to properly register a business in New Jersey; how to certify a business as women-, minority-, or veteran-owned; and ways to access free available technical assistance, federal resources, and mentorship opportunities, among other relevant topics.

“We encourage small business owners to take advantage of the opportunity these free virtual workshops  offer to network with other small business entrepreneurs and learn about available resources from small business partners and various government entities,” said NJEDA Chief Executive Officer Tim Sullivan. “In line with Governor Murphy’s commitment to building a stronger, fairer New Jersey economy, these workshops will help small business owners take another step forward on their path to start, grow or maintain their businesses, with the ultimate goal of creating thriving enterprises that will make their communities stronger and more resilient.”

Click the link below to register for the workshop in your region.

In addition to NJEDA staff, panelists will include representatives from the US Small Business Administration (SBA), the New Jersey Small Business Development Center (SBDC), SCORE, the New Jersey Business Action Center (BAC), the New Jersey Department of Treasury, the New Jersey Division of Taxation, and local Community Development Financial Institutions (CDFIs). 

“Small business ownership can be challenging under the best of circumstances, and these workshops will help to ensure entrepreneurs understand the financial, technical, and educational resources available to them,” said State Treasurer Elizabeth Maher Muoio. “They will also help to raise awareness of recent steps the state has taken to ease some of the hurdles to building a stable and sustainable business, including Treasury’s decision to waive the fee for certification as a Small, Minority, Women, or Veteran-owned Business Enterprise.”

Workshop participants will give a two-minute introduction and then enter a breakout session to further discuss their organization and what they offer. There will be three breakout sessions: one for the SBA, SBDCs, SCORE; one for the BAC, Treasury and Taxation; and one for the CDFIs. Local service providers and lender representatives will also attend each workshop to present information about their technical assistance services and resources.

“The Business Action Center is excited to work with partners across the state to deliver these sessions as businesses regroup from the impact of the pandemic and position themselves more securely to withstand future economic stressors,” said Melanie Willoughby, Executive Director, BAC. “There is an abundance of resources available to New Jersey businesses in all stages and these workshops will help business owners identify potential solutions to their unique challenges.”

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.com and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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TRENTON, N.J. (August 11, 2021) – The New Jersey Economic Development Authority (NJEDA) Board today approved rules for the Main Street Recovery Program. Created under the Economic Recovery Act of 2020 (ERA), 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.com/main-street-recovery-fund/.

“Supporting small businesses is the centerpiece of Governor Phil Murphy’s plan for a stronger, fairer recovery from the COVID-19 pandemic,” said NJEDA Chief Executive Officer Tim Sullivan. “The Main Street Recovery Program approved today will build on the NJEDA’s successful COVID-19 relief programs to provide new resources tailored specifically to help business owners recover from the impacts of the pandemic and prepare for long-term success.”  

The rules approved today create two grant products funded by the Main Street Recovery Program: the Small Business Lease Assistance Grant and the Small Business Improvement Grant.

The Small Business Lease Assistance Grant is a $10 million program that will provide grants to businesses entering new or amended leases with at least five-year terms that include at least 250 square feet of street-level space. This grant funding will offset a portion of annual lease payments for two years.

The Small Business Improvement Grant is a $15 million program that will provide grants up to $50,000 to reimburse businesses for a portion of costs associated with improvements and/or the purchase or installation of furniture, fixtures, and equipment since March 9, 2020.  

Applications for these programs are currently under development. The NJEDA will announce the application timeline for both programs soon.

In addition to the Small Business Lease Assistance Grant and the Small Business Improvement Grant, the NJEDA intends to pilot additional products to be funded through the Main Street Recovery Program. The Authority anticipates these pilot programs will include financing to help microbusiness lenders provide more low-cost loans and technical assistance for microbusinesses and an expansion of the NJEDA’s existing Micro Business Loan Program through which the Authority will provide low-cost financing directly to eligible microbusinesses.

In line with Governor Murphy’s commitment to a stronger, fairer recovery from the COVID-19 pandemic, 40 percent of all Main Street Recovery Program funds are reserved for businesses located in census tracts that were eligible to be designated as Opportunity Zones. Providing dedicated funding for these census tracts helps to ensure equitable access to resources for communities and businesses that have historically struggled to access resources.

The Main Street Recovery Program is part of a suite of programs created or expanded under the ERA 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.

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.com and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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91 Previous Program Participants Have Already Qualified for $33 Million in Surety Bonds

Trenton, N.J. (July 13, 2021) – The New Jersey Economic Development Authority (NJEDA) and the African American Chamber of Commerce of New Jersey (AACCNJ) today announced that 23 participants have fully completed the class work that kicked off earlier this year and are ready to graduate from the Small Business Bonding Readiness Assistance Program. This round of participants completed the program with ten small businesses qualifying for surety bonding, which totals more than $11.5M at this time. This will help these small business owners compete for city, county, and state contracts and expand their portfolios of projects, which in turn helps them grow their business. 

The program was launched in 2018 by the NJEDA and the AACCNJ, to help prepare small, minority, and women-owned business owners to obtain bonds, a crucial step in competing for state and federal government contracts. The most recent class was held entirely virtually due to COVID-19. Including this latest class, 91 small-, minority-, and women-owned businesses have participated in the Small Business Bonding Readiness Assistance Program and 46 of them have qualified for over $33.0M in surety bonds. Furthermore, the recently approved State budget for Fiscal Year 2022 includes $500,000 for the Small Business Bonding Readiness Program, doubling what was allocated in prior years.

“Under Governor Murphy’s leadership, we have prioritized connecting small-, minority-, and women-owned businesses with the resources they need to succeed and the Small Business Bonding Readiness Assistance Program is a tremendous asset in achieving that goal,” said NJEDA Chief Executive Officer Tim Sullivan. “We applaud the perseverance and determination these business owners have shown throughout this Program, as they obtain the tools and knowledge necessary to help them remove the obstacles that once would have kept them from bidding on state and federal contracts.”

The Small Business Bonding Readiness Assistance Program provides a comprehensive series of classes, workshops, and strategic counseling sessions covering a variety of topics relevant to small businesses in all sectors, including bonding and insurance, business development, financial presentation, construction and contract law, construction management, estimating, and credit. At the end of the program, all participating businesses receive a Bonding Readiness Segment Report, which provides an in-depth assessment of their strengths and weaknesses to help them plan for the future. The Fall 2021 class is slated to begin in early September. Anyone interested in participating in this free program should submit an application, which can be found at https://www.aaccnj.com/bonding-program—sbbrap.html. A representative from the African American Chamber will follow-up with you to discuss the review process to be accepted into the program.  

“Empowering businesses owned by blacks, women and people of color to vie for state and federal contracts is key to re-opening our post-COVID economy in an equitable and inclusive manner,” said John E. Harmon, Sr., IOM, AACCNJ, Founder, President and CEO. “We congratulate the most recent class of graduating students and we encourage other small business owners interested in furthering their growth to take advantage of these invaluable resources available through the Small Business Bonding Readiness Assistance Program.”

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.

About the African American Chamber of Commerce of New Jersey

The AACCNJ performs an essential role in the economic viability of New Jersey. While providing a platform for New Jersey’s African American business leaders, to speak with a collective voice, the AACCNJ advocates and promotes economic diversity fostering a climate of business growth through major initiatives centering on education and public policy. The Chamber serves as a proactive advocacy group with a 501(c) 3 tax exemption, which is shared by the National Black Chamber of Commerce.  

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

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TRENTON, N.J. (July 7, 2021) – The New Jersey Economic Development Authority (NJEDA) today released for public feedback a draft rule proposal for the new Main Street Recovery Finance Program, as established under the New Jersey Economic Recovery Act of 2020 (ERA). The Main Street Recovery Finance Program is a $100 million fund, under which grants, loans, and technical assistance will be made available to support small and micro businesses in New Jersey. The Main Street Recovery Finance Program will not only provide grants directly to businesses, but will also develop pilot programs over time that will provide loans to other micro business lenders like Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), increasing their lending capacity to support more New Jersey micro businesses.

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 three listening sessions for public input on the draft rules.

“While the COVID-19 pandemic has been challenging for everyone, few have faced tougher challenges than small business owners and their employees,” said NJEDA Chief Executive Officer Tim Sullivan. “The Main Street Recovery Finance Program is an important new program that will provide much-needed financial support and technical assistance to help businesses get back on their feet and prepare for a strong recovery.”

Draft Main Street Recovery Finance Program rules are available now for review at https://www.njeda.com/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:

  • Monday, July 12th at 5:00 p.m.
  • Tuesday, July 13th at 2:00 p.m.
  • Thursday, July 15th at 10:00 a.m.

Members of the public can access the listening sessions at https://tinyurl.com/MainStreetListening; Passcode: Main.

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

In addition to the Main Street Recovery Finance Program, 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 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.com/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.com and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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