How is the State backing small business loans via the NJEDA Small Business Emergency Assistance Guarantee Program?
The Small Business Emergency Assistance Program is a $10 million pilot program that makes available one-year first loss guarantees of permanent working capital loans and lines of credit originated by Premier Lender banks. These loans must be made to cover operating expenses for New Jersey small businesses and non-profit organizations that have been impacted by the COVID-19 outbreak.
To see whether you might qualify for this program, use the NJ COVID-19 Business Support Eligibility Wizard.
The program provides a 50% guarantee, not to exceed a total NJEDA exposure of $100,000 to Premier Lenders that will issue working capital loans or lines of credit to support business continuity for a range of COVID-19 related impacts to businesses (reduced revenue, employee shortage, supply chain impact, etc.) There are no NJEDA fees associated with applying for this program.
List of Premier Lenders
BB&T · Bank of America · Columbia Bank · ConnectOne Bank · Cross River Bank · Fulton Bank of New Jersey · Investors Bank · JPMorgan Chase · Lakeland Bank · M&T Bank · Newfield National Bank · OceanFirst Bank · Peapack-Gladstone Bank · PNC · Republic Bank · Santander Bank · Sterling National Bank · TD Bank · The Bank of Princeton · Provident Bank · TriState Capital Bank · Valley National Bank · Wells Fargo
Your organization is eligible for the Small Business Emergency Assistance Guarantee Program if you…
- Have a physical commercial location in the State of New Jersey
- Home-based businesses are not eligible for this round of grant funding. A home-based business is a business operated out of a residential property where commercial activity is not zoned to take place.
- Have been in existence for at least one full year
- Have $5 million or less in annual revenue
- Can demonstrate a negative impact on your business due to the COVID-19 outbreak
- Can provide CEO certification that you are making a best-effort to not lay off employees or will re-hire employees as soon as possible
- Are registered to do business in NJ and must certify that the company is in good tax standing with the State
- Are in good standing with the New Jersey Department of Labor and Workforce Development
Types of businesses not eligible:
- Related to gambling or gaming activities
- Related to the purveyance of “adult” (i.e., pornographic, lewd, prurient, obscene) activities, services, products or materials (including nude or semi-nude performances or the sale of sexual aids or devices)
- Auction or bankruptcy or fire or “lost-our-lease” or “going-out-of-business” or similar sale
- Traveling merchant
- Christmas tree sales or other outdoor storage
- Any other activity constituting a nuisance
- Illegal under the laws of the State of New Jersey
To access this program, please work through one of the Premier Lenders listed above.