State of New Jersey Announces Small Businesses with Annual Revenues of Up to $5 Million Eligible for $100,000 Loans at 0% Interest for 5 Years- Limited Application Period Beginning April 13
On Monday April 6, the New Jersey Economic Development Authority (NJEDA) announced details of its COVID-19 Small Business Emergency Assistance Loan Program (SBEALP.) The SBEALP allows a New Jersey business with annual revenues up to $5 million that was adversely impacted by COVID-19 to apply to receive a ten-year loan of up to $100,000 in working capital at a 0% interest rate for 5 years, and a 1-3% interest rate for years 6-10. NJEDA indicated that there is currently $10 million in total funding available for the SBEALP program, with future additional funding anticipated.
In order to be eligible for the SBEALP, a business must:
- Be registered to do business in NJ and have a physical commercial location in NJ
- Have $5 million or less of annual revenue
- Be in existence for at least one year
- Have been negatively impacted by COVID-19 Outbreak (by a temporary shutdown, a reduction in hours, a revenue decrease of at least 20%, or has been materially impacted by employees unable to work due to the Outbreak)
- Pledge to make best efforts not to furlough or lay off employees, and pledge make best efforts to rehire any already-furloughed or laid off workers as soon as possible.
- Be in good standing with taxing authorities and Department of Labor and not be debarred from any state programs
- Have one guarantor with a credit score of at least 600
Loan applicants will be able to access the loan application beginning on Monday, April 13, at 9AM. The loan application period is limited, and will close on Monday, April 20th at 9AM. A copy of the application was made available on line at https://www.njeda.com/pdfs/NJEDA_COVID-19_Loan_App_Walkthrough to allow potential applicants to gather the necessary information in advance of the loan application period. The information required is substantial, and includes materials such as entity formation documents (certificate of formation and operating agreement), financial statements, and three years of tax returns for both the business and its individual owners.
How Frier Levitt Can Help
Based on the limited application period, and the small initial pool of funding available, we recommend any businesses planning to apply for assistance be prepared to do so as early in the application period as possible. Please feel free to reach out if you require any additional information regarding the NJ SBEALP or should you need any assistance.