NJ Small Business Loan Fund receives $ 50 million in emergency aid
Hairdressers gather peacefully at Verona Park
Members of the NJ Salon and Spa Coalition hold their placards as they gather peacefully at Verona Park in Verona on Wednesday.
Small businesses in New Jersey will have access to an additional $ 50 million in emergency assistance from the New Jersey Economic Development Authority, the state agency said on Friday.
The expansion of EDA Existing Small Business Emergency Assistance Grant Program, funded by the latest round of federal stimulus, relaxes eligibility criteria to include more businesses that qualify for loans of up to $ 10,000.
Previously, businesses with no more than 10 full-time employees were eligible for loans. Now the employee limit has been raised to 25. Home businesses and sole proprietorships are also newly eligible.
The coronavirus outbreak coupled with Gov. Phil Murphy’s directives that sharply reduced the types of businesses that can remain open have put many small businesses in danger of permanent closure, as state and nation alike see unprecedented increase in the ranks of the unemployed.
“This much-needed federal assistance will allow us to support thousands more businesses that were not eligible for the first round of grants, with a particular focus on businesses in the most at-risk communities,” said CEO of ‘EDA, Tim Sullivan, in a statement.
According to the EDA, since establishing the Small Business Emergency Assistance Grant program, more than 34,000 businesses have applied for funding and the agency has provided more than $ 5.5 million in grants. to more than 1,600 businesses statewide.
Of the new funding, $ 5 million will be used as loans for companies that were denied funding in the first round, the EDA said.
Eligible businesses must certify that they were in operation on February 15, 2020, that they have been negatively affected by the virus outbreak, and that they will do their utmost not to lay off or lay off employees. Interested candidates can find more information on New Jersey Covid-19 Information Website. There is no application fee.
Terrence T. McDonald is a reporter for NorthJersey.com. For unlimited access to the most important news from your local community, please register or activate your digital account today.