PARSIPPANY, NJ -- Representative Mikie Sherrill (NJ-11) and New Jersey Economic Development Authority (NJEDA) will hold a webinar Friday, October 23 at 1:30pm to help small businesses who are interested in applying for Phase 3 of the Small Business Emergency Assistance Grant Program.
The webinar will take place via Zoom, email NJ11MS_Events@mail.house.gov to receive the link.
The NJEDA will administer the grants, which are funded by $70 million in federal funding from the Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed by Congress and signed into law by the President in March.
“This most recent tranche of NJEDA grant funding will bring much needed additional support to the New Jersey small business community, especially our restaurants and smallest businesses,” said Rep. Sherrill. “I encourage business owners in NJ-11 who are eligible for this program to join the webinar to get their questions answered and to ensure that they understand the pre-registration and application process.”
Phase 3 of the NJEDA’s Small Business Emergency Assistance Grant Program, which will be funded with $70 million from the CARES Act, significantly expands eligibility for the grant program and increases the amount of funding businesses can receive. To ensure funding goes to businesses hit hardest by the pandemic, Phase 3 sets aside funding for restaurants, micro-businesses, and businesses based in Opportunity Zone-eligible census tracts.
Interested business owners must pre-register to receive an application. Pre-registration opened Monday, October 19, and closes Tuesday, October 27. The application will be available via a phased approach following the end of the pre-registration period.
Phase 3 expands eligibility for the grant program and increases the amount of funding individual businesses can receive. Any business or nonprofit located in New Jersey, including home-based businesses, with 50 or fewer full-time equivalent employees (FTEs) is eligible to receive grant funding during Phase 3. Businesses that received funding in previous phases of the program are eligible to receive Phase 3 funding.
Phase 3 increases the amount of funding available to businesses. To maximize the funding businesses receive, grant awards will be based on the peak FTE count from a business’s past six quarters of WR-30 filings. Grant awards will be calculated based on the number of FTEs businesses employ. $15 million will be directed to support “micro-businesses” that have five or fewer FTEs. The remaining $20 million will be available to support any eligible business.
- Micro-businesses with five or fewer FTEs and sole proprietorships will receive $5,000;
- Businesses with six to 25 FTEs will receive $10,000;
- Businesses with 26 to 50 FTEs will receive $15,000.
Phase 3 will provide $25 million in larger grants for businesses that are classified as “Food Services and Drinking Places”:
- Businesses in this classification with five or fewer employees will receive $10,000;
- Businesses with six to 25 FTEs will receive $15,000;
- Businesses with 26 to 50 FTEs will receive $20,000.
Businesses must use funds from the Grant Program for reimbursement of lost revenue as a result of business interruption caused by COVID-19. Businesses may not use grant funds for capital expenses.
Recognizing the significant need for relief, the NJEDA anticipates Phase 3 of the Grant Program will be oversubscribed. To streamline the application process, the Authority is requiring all applicants to pre-register online. Applications will become available on a rolling basis following the pre-registration period. Pre-registered applicants will need to return to complete an application based on the following schedule:
- Restaurants – 9:00 a.m. on Thursday, October 29, 2020
- Micro-businesses – 9:00 a.m. on Friday, October 30, 2020
- All other businesses, excluding restaurants and micro-businesses – 9:00 am on Monday, November 2, 2020
Applications for each category will be open for a period of one week will be accepted on a first-come, first-served basis.