Sponsoring Agency: New Jersey Economic Development Authority
Type of Fund: Grant
Deadline Available: Available
Deadline Date (mm/dd/yyyy): 04/29/2021
Size of the Fund: Less than USD $50,000
The New Jersey Economic Development Authority (NJEDA) has announced Phase 4 of the Authority’s Small Business Emergency Assistance Grant Program, adding $85 million in funds from the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The purpose of the Small Business Emergency Assistance Grant Program-Phase 4 is to provide short-term, immediate payroll and working capital support to SMEs that that have been negatively impacted during the declared state of emergency, thereby helping to stabilize their operations and minimizing any potential furloughs and/or layoffs.
Award sizes for all categories, including “Food Services and Drinking Places” businesses with NAICS beginning with 722 and “Child Care Providers” businesses with NAICS code 624410, Micro-Businesses and Small Businesses, are based on FTEs, as follows:
• FTEs Award
o 5 or fewer FTEs, including businesses with no FTEs: $10,000
o 6 to 25 FTEs: $15,000
o 26 to 50 FTEs: $20,000
FTEs will be determined for award size in the same manner as for eligibility. If the grant amount for the applicant is greater than the unmet need, the amount will be determined in $500 increments, not to exceed the amount of need. For applicants with an unmet need between $500 and $1,000, the minimum grant award shall be $1,000; no grant amount will be approved if the applicant’s unmet need is less than $500.
To be eligible, applicants must be SMEs with no more than 50 FTEs.
• The Authority will utilize the applicant’s New Jersey WR-30 filings with the New Jersey Department of Labor and Workforce Development (DLWD). Initially, the highest FTE count of the past eight quarters – 1st Quarter 2019 to 4th Quarter 2020 – will be used, enabling businesses to receive the award corresponding to their peak headcount in 2019 or 2020 rather than their current headcount, which may reflect substantial headcount declines due to significant losses in revenue during the COVID-19 pandemic.
• To determine eligibility, the 4th Quarter 2020 WR-30 or 3rd Quarter 2020 WR-30, whichever is the most recently filed, will be reviewed. If the most recent WR-30 FTE count is less than the eligibility threshold, the business will be eligible and receive a grant award based on the largest FTE category. Implied FTE calculations will be rounded to the nearest FTE (e.g., 2.49 FTE would be counted as 2 FTE for the program, whereas 2.50 FTE would be counted as 3 FTE). While the calculation of FTEs is based on weeks worked and wages as reported on the WR-30 filing, in no event will a company receive grant funding based on a number of FTEs that exceeds the number of employees employed by the company, EXCEPT that if a sole proprietor or other applying entity has no FTEs, it may be eligible for the minimum grant award based on business type. For entities like sole proprietors the NJEDA will work with the Division of Taxation in the Department of Treasury, to identify tax filing status.
• The SME must have a physical commercial location in the State of New Jersey (e.g., an office, a physical point of sales, a warehouse, manufacturing facility, etc.). With regard to home-based businesses, the home must be located in New Jersey.
• Non-profit entities organized under Internal Revenue Code section 501(c) will be eligible, with the exception of organizations whose primary activity is political lobbying.
• Prohibited businesses include, but are not limited to: gambling or gaming activities; the conduct or purveyance of “adult” (i.e., pornographic, lewd, prurient, obscene or otherwise similarly disreputable) activities, services, products or materials (including nude or semi-nude performances or the sale of sexual aids or devices); any auction or bankruptcy or fire or “lost-our-lease” or “going-out-of-business” or similar sales; sales by transient merchants, Christmas tree sales or other outdoor storage; any activity constituting a nuisance; or any illegal purposes.
• Businesses that were approved for grant funding under Phase 1 to 3 of the Small Business Emergency Assistance Grant Program will be eligible for Phase 4 funding. Funding received in Phases 1 to 3 will not affect the award sizes these businesses are eligible to receive in Phase 4 (except to the extent those prior awards reduce the business’s unmet need to below the grant amount the business would otherwise be eligible for). However, businesses that applied in Phase 1 to 3 will need to re-apply and submit all required documentation regardless of their prior application.
The CEO/equivalent officer of the SME must self-certify that the firm:
• Was in operation on February 15, 2020;
• Will make a best effort not to furlough or lay off any individuals from the time of application through six months after the end of the declared state of emergency. SMEs that have already furloughed or laid off workers from the time of application must make a best-effort pledge to re-hire those workers as soon as possible. Any material breach of its best efforts certification may result in the NJEDA seeking repayment of the grant;
• Has been negatively impacted by the COVID-19 declared state of emergency on March 9, 2020 (e.g., has been temporarily shut down, has been required to reduce hours, has had at least a 20% drop in revenue, has been materially impacted by employees who cannot work due to the outbreak, or has a supply chain that has materially been disrupted and therefore slowed firm-level production); and
• Has a material financial need that cannot be overcome without the grant of emergency relief funds at this time (e.g., does not have significant cash reserves that can support the SME during this period of economic disruption).
The SME must be registered to do business in the State of New Jersey, as evidenced by a current registration status from the Division of Taxation. If the SME is not recognized by the Division of Taxation, the SME must provide proof of registration prior to February 15, 2019 and a valid Business Registration Certificate (BRC). The SME will have 4 weeks from initial notification from the NJEDA to satisfy that requirement. No grant agreement will be executed without a current registration status from the Division of Taxation or a valid BRC.
In addition, the SME must satisfy the Division of Taxation’s requirement to ensure that the SME does not have tax debts due to the State. As with Phase 1 to 3, the applicant shall certify that it does not owe any taxes and will be subject to repayment if the certification is not correct.
The SME must be in good standing with DLWD, with all decisions of good standing at the discretion of DLWD’s Commissioner. If the SME is regulated by the Division of Alcoholic Beverage Control (ABC), then it must also be in good standing with ABC, with all decisions of good standing at the discretion of the ABC. If the SME is regulated by the Department of Human Services (DHS), then it must also be in good standing with DHS, with all decisions being at the discretion of the DHS. If the SME is regulated by the Department of Children and Families (DCF), then it must also be in good standing with DCF, with all decisions being at the discretion of the DCF.
Entities with multiple EIN can submit one application per EIN. Businesses with multiple locations but only one EIN will be limited to one application (under the sole EIN).
Additional eligibility requirements may apply, which will be based on any applicable Federal requirements tied to the CARES Act funding, including, but not limited to, the following:
• Applicants must acknowledge and agree to the requirement that grant proceeds only be used for eligible uses as defined below;
• A restriction on duplication of benefits that could exclude potential applicants that have already received emergency COVID-19 assistance; and
• A requirement that the applicant demonstrate that it has had negative impacts from COVID-19.
More information at: https://www.njeda.com/notice-of-funding-availability-small-business-emergency-assistance-grant-program-phase-4/