Friday, March 27, 2020 Status
NJEDA initiatives / US Stimulus Bill / What's an essential business? |
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NJ Economic Development Authority (NJEDA)
Grants and loans are among the initiatives being coordinated by the NJEDA. The package of initiatives includes a grant program for small businesses, a zero-interest loan program for mid-size companies, support for private-sector lenders and Community Development Financial Institutions (CDFIs), funding for entrepreneurs, and a variety of resources providing technical support and marketplace information.
Taken together, they will provide more than $75 million of State and private financial support, with the opportunity to grow to more than $100 million if additional philanthropic, State, and federal resources become available. The initiatives will support small and midsize enterprises and are meant to complement recently announced federal economic recovery initiatives.
Some of the programs will be available through the SBA. General information about the programs is available here: https://cv.business.nj.gov.
One programs, not through the SBA, is the Small Business Emergency Assistance Program. It is a $10 million pilot program that makes available one-year first loss guarantees of permanent working capital loans and lines of credit originated by Premier Lender banks. These loans must be made to cover operating expenses for NJ small businesses and non-profit organizations that have been impacted by the COVID-19 outbreak. The program provides a 50% guarantee, not to exceed a total NJEDA exposure of $100,000 to Premier Lenders that will issue working capital loans or lines of credit to support business continuity for a range of COVID-19 related impacts to businesses (reduced revenue, employee shortage, supply chain impact, etc.) There are no NJEDA fees associated with applying for this program. List of Premier Lenders - BB&T · Bank of America · Columbia Bank · ConnectOne Bank · Cross River Bank · Fulton Bank of New Jersey · Investors Bank · JPMorgan Chase · Lakeland Bank · M&T Bank · Newfield National Bank · OceanFirst Bank · Peapack-Gladstone Bank · PNC · Republic Bank · Santander Bank · Sterling National Bank · Sturdy Savings Bank · TD Bank · The Bank of Princeton · Provident Bank · TriState Capital Bank · Valley National Bank · Wells Fargo. Contact the lender directly for information. Details about other programs will be forthcoming...stay tuned. |
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US Stimulus bill
*Among the items pertaining to businesses assistance are:
Paycheck Protection Program Nearly $350 billion in funding for a provision to create a Paycheck Protection Program (PPP) that will provide small businesses and other entities with zero-fee loans of up to $10 million. Up to 8 weeks of average payroll and other costs will be forgiven if the business retains its employees and their salary levels. Principal and interest is deferred for up to a year and all borrower fees are waived. This temporary emergency assistance through the U.S. Small Business Administration (SBA) and the Department of Treasury can be used in coordination with other COVID-financing assistance established in the bill or any other existing SBA loan program. The bill requires the SBA Administrator to set a cap on how much a bank can earn to process loan applications and prioritize underserved borrowers, including those in rural communities, minorities, women and veterans.
Emergency Economic Injury Grants - $10 billion in funding for a provision to provide an advance of $10,000 to small businesses and nonprofits that apply for an SBA economic injury disaster loan (EIDL) within three days of applying for the loan. EIDLs are loans of up to $2 million that carry interest rates up to 3.75 percent for companies and up to 2.75 percent for nonprofits, as well as principal and interest deferment for up to 4 years. The loans may be used to pay for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses. The EIDL grant does not need to be repaid, even if the grantee is subsequently denied an EIDL, and may be used to provide paid sick leave to employees, maintaining payroll, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
Debt Relief for Existing and New SBA Borrowers $17 billion in funding for a provision to provide immediate relief to small businesses with standard SBA 7(a), 504, or microloans. Under this provision, SBA will cover all loan payments for existing SBA borrowers, including principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out an SBA loan within six months after the President signs the bill. The measure also encourages banks to provide further relief to small business borrowers by allowing them to extend the duration of existing loans beyond existing limits; and enables small business lenders to assist more new and existing borrowers by providing a temporary extension on certain reporting requirements.
Paid Leave for Government Contractors - a provision that provides paid leave for employees working on small business contracts with the federal government. The measure allows agencies to modify the terms of a contract to reimburse small business contractors for the cost of providing paid leave, including sick leave, to employees or subcontractors unable to perform work on-site due to a facility closure and cannot telework.
Resources for Business Counseling Services Many large companies are struggling to respond to the unprecedented economic disruption our nation is facing, so small businesses that have even fewer resources to dedicate to navigating the economic impacts of COVID-19 must have access to reliable counseling and mentorship services. The stimulus provides $275 million in grants to the nation’s network of Small Business Development Centers (SBDCs) and Women’s Business Centers (WBCs), as well as the Minority Business Development Agency’s Business Centers (MBDCs), to provide mentorship, guidance and expertise to small businesses.
*Several assistance programs are in development. If you are considering one of these programs, please review the specific requirements and details for each program. This information is advisory and by no means complete. |
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Not everyone is clear on Gov. Murphy's Executive order #107, so the State has posted a webpage to help clarify the essential/ non-essential business status:
If you have a business classified as essential (list below) you must, wherever practicable, provide pickup services outside or adjacent to your store for goods ordered in advance online or by phone. Additionally, online and phone delivery services are permitted to the extent the retail business is authorized to operate an online or telephone delivery service under existing law.
Essential businesses: - Grocery stores, farmer’s markets and farms that sell directly to customers, and other food stores, including retailers that offer a varied assortment of foods comparable to what exists at a grocery store;
- Pharmacies and alternative treatment centers that dispense medicinal marijuana;
- Medical supply stores;
- Retail functions of gas stations;
- Convenience stores;
- Ancillary stores within healthcare facilities;
- Hardware and home improvement stores;
- Retail functions of banks and other financial institutions;
- Retail functions of laundromats and dry-cleaning services;
- Stores that principally sell supplies for children under five years old;
- Pet stores;
- Liquor stores;
- Car dealerships, but only to provide auto maintenance and repair services, and auto mechanics;
- Retail functions of printing and office supply shops; and
- Retail functions of mail and delivery stores.
Please read and review Executive Order #107 as it pertains to your business(es). |
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