NEWARK, NJ — The recipients of a third round of emergency funding for small businesses in Newark affected by the COVID-19 pandemic were announced on Monday.
The Small Business Grant Fund, created in March 2020, is aimed to support Brick City's small businesses impacted by the pandemic and help them to survive the current crisis, retain as many employees as possible, adapt, and recover.
“With limited funds, we are working to help Newark businesses, tenants, artists and others facing financial ruin from COVID-19 to survive and recover,” Newark Mayor Ras Baraka said. “The Small Business Emergency Fund is one of the many ways that we are pulling together as a community to fight the virus and restore our economy. In collaboration with President [Joe] Biden, our federal, state and city legislators and our philanthropic community, we are working to expand the help that we can provide to Newark’s small businesses.”
Awards under this round totaled up to $25,000 to businesses with one to 25 employees and included home-based businesses, according to city officials. Applications were scored to prioritize personal services (barber shops, hair salons, nail salons), businesses that employ residents, minority- and women-owned business enterprises, and those that did not receive funding in the earlier round of city grants.
The program was available city-wide with a major share of the funds reserved for the hardest hit Zip Codes (07104, 07105 and 07107). Only businesses that complied with the 10-day shutdown from Nov. 25 to Dec. 4, 2020, were eligible, officials said.
Allison Ladd, Deputy Mayor and Director of Economic and Housing Development said that 110 businesses received grants.
A breakdown of the businesses that received funding is as follows:
- 62% of the awards went to businesses in the hardest-hit zip codes.
- 31% of the awards went to food/beverage businesses.
- 25% of the awards went to salon/barber/personal services businesses.
- 14% of the awards went to retail businesses, and the remainder went to a variety of other categories.
Grant awards cover accounts payable, payroll, inventory, licensing and license renewal, utilities, accounting and auditing services, rent, insurance, COVID-related equipment and supplies for adaptation and recovery.
The program is administered by the city’s Department of Economic and Housing Development and funded by local trust funds and U.S. Department of Housing and Urban Development Community Development Block Grant (CARES CDBG) funds. This round was developed with support from Bloomberg Associates.
Newark Small Business Grant Fund Recipients - Round Three
The recipients of round three grants from the city's emergency initiative to stabilize Newark’s small businesses impacted by COVID-19 were announced on Monday.