Small Businesses:

  • New Federal Resources:
    • The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was just passed by Congress are intended to assist business owners with whatever needs they have right now. Many new resources are now available for small businesses, as well as certain non- profits and other employers. 
    • To keep up to date on when these programs become available, please stay in contact with the New Jersey District SBA Offices in Newark at 973-645-2434 or by visiting their website.
    • View the Small Business Owner’s Guide to the CARES Act here.
    • The following questions might help point you to the right resources. Do you need:
  • Payment Protection Program (PPP) Loans:
    • The purpose of the Paycheck Protection Program is to help you retain your employees, at their current base pay. The program would provide cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. PPP has a host of attractive features, such as forgiveness of up to 8 weeks of payroll based on employee retention and salary levels, no SBA fees and at least six months of deferral with maximum deferrals of up to a year.
      • Loans are available through June 30, 2020. The maximum loan size is $10 million.
      • You may find a list of participating SBA Lenders in New Jersey by clicking here.
      • To find out more about the program, visit the Small Business Administration website here.
      • Frequently asked questions about the Paycheck Protection program can be found here.
      • How to find an SBA PPP Lender
      • SBA PPP website
      • Treasury PPP website
  • Economic Injury and Disaster Loan (EIDL) and Emergency Grant Program:
    • The CARES Act temporarily expands eligibility for SBA economic injury disaster loans (EIDL), and provides an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within 3 days of applying for an SBA Economic Injury Disaster Loan (EIDL).
      • You can apply for an EIDL online with the SBA HERE.
      • When you apply, you can request an emergency grant of $10,000.
      • The SBA will provide the grant within 3 days of receiving your application.
      • You will not have to repay the grant, even if your application for a loan is denied.
      • You can visit an SBA resource partner who can help guide you through the loan application process. You can find your nearest Small Business Development Center (SBDC) or Women’s Business Center here.
      • For additional information or to obtain help preparing the loan application please contact the New Jersey District SBA Offices in Newark at 973-645-2434 or by visiting their website.
  • Small Business Debt Relief Program:
    • Under the CARES Act, the SBA will cover all loan payments on 7(a) loans, including principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out loans within six months of the bill being signed into law.
      • The SBA will pay the principal and interest of current 7(a) loans for a period of six months.
      • The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
      • You may find out more about the different types of 7(a) loans by visiting this site.

Other CARES Act provisions to benefit employers and small businesses:

  • Employee Retention Tax Credit — The CARES Act creates a refundable payroll tax credit for businesses and non-profits that retain their employees during the COVID-19 crisis. The tax credit is equal to 50% of wages and compensation.  There is an overall limit on wages per employee of $10,000. 
  • Advanced Tax Credits for Paid Leave — The CARES Act allows employers to receive an advance tax credit for required paid sick leave (under the Families First Coronavirus Response Act) instead of having to be reimbursed.
  • Delay of Payment of Employer Payroll Taxes — Employers and self-employed individuals may defer payment of the employer share of the Social Security tax they otherwise are responsible for paying.
  • Net Operating Loss Modifications — The provision relaxes the limitations on a company’s use of losses.  Net operating losses (NOLs) are currently subject to a taxable-income limitation, and they cannot be carried back to reduce income in a prior tax year.  The provision also temporarily removes the taxable income limitation to allow an NOL to fully offset income. These changes will allow companies to utilize losses and amend prior year returns, which will provide critical cash flow and liquidity during the COVID-19 emergency.
  • Treasury Fund for Larger Businesses — The CARES Act authorizes $454 billion for loans, loan guarantees and investments in support of facilities established by the Federal Reserve to support lending to eligible businesses, states, or municipalities.  

New Jersey Small Business Development Center (SBDC) Assistance:

New Jersey small businesses can visit the New Jersey Small Business Development Center website for information about COVID 19 emergency support programs: https://njsbdc.com/.

For free counseling services, click the tab for “Counseling” and register as a “new business” or “existing business.”

New Jersey Economic Development Authority (NJEDA) Small Business Emergency Assistance Grant Program:

In response to the economic challenges being faced by New Jersey Small and Medium sized businesses and non-profits, the New Jersey Economic Development Authority (NJEDA) has created the Small Business Emergency Assistance Grant Program.

Apply now to the Small Business Emergency Assistance Grant at: forms.business.nj.gov/grant  

Applications are open now and will close April 10, 2020, at 9 a.m. Completed applications will be considered on a first come, first serve rolling basis. Businesses can now access the full Notice of Funding Availability.

New Jersey Economic Development Authority (NJEDA) Small Business Emergency Assistance Loan Program

A $10 million program that will provide working capital loans of up to $100,000 to businesses with less than $5 million in revenues. Loans made through the program will have ten-year terms with zero percent for the first five years, then resetting to the EDA’s prevailing floor rate (capped at 3.00%) for the remaining five years.

Applications open on April 13, 2020, at 9:00 a.m. To see whether you qualify, please use the NJ COVID-19 Business Support Eligibility Wizard.

Other Resources for Businesses:

  • The Small Business Owner’s Guide to the CARES Act is available here.
  • The House Committee on Small Business’ guide summary of the CARES Act is available here.
  • The U.S. Chamber of Commerce’s Coronavirus Emergency Loan Guide for small businesses is available here.

Manufacturing & Donating Personal Protective Equipment (PPE) and Supplies

  • Find information from the Federal Emergency Management Agency (FEMA) on how to help HERE.
  • For any business in New Jersey who has PPE they wish to donate, like N95 respirators, face shields, protective goggles, surgical masks, or other protective equipment, visit covid19.nj.gov/ppedonations.

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