Additional Resources For South Jersey Employers Impacted By COVID-19

While you may have heard about the available SBA Economic Injury Disaster Loans (ELDI), other resources are becoming available for small businesses facing hardships due to the COVID-19 pandemic and precautions. The following may be helpful to small businesses and not-for-profits located in Southern New Jersey or Greater Philadelphia.

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New Jersey Businesses

NJ Economic Development Authority (EDA) Grants & Loans

The New Jersey EDA approved a suite of new initiatives designed to support businesses and workers facing economic hardship due to the outbreak of the novel coronavirus COVID-19.

• Small Business Emergency Assistance Grant Program: A $5 million program that will provide grants up to $5,000 to small businesses in retail, arts, entertainment, recreation, accommodation, food service and other services — such as repair, maintenance, personal and laundry services — to stabilize their operations and reduce the need for layoffs or furloughs.
  • Note: The New Jersey Economic Development Authority (NJEDA) will launch the application for its Small Business Emergency Assistance Grant Program on Friday, April 3, 2020 at 9:00 am. A link to the grant program application will be posted on the State’s COVID-19 Business Information Hub.
• 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 10-year terms with zero percent for the first five years, then resetting to the EDA’s prevailing floor rate (capped at 3%) for the remaining five years.
• Community Development Finance Institution Emergency Loan Loss Reserve Fund: A $10 million capital reserve fund to take a first loss position on CDFI loans that provide low-interest working capital to microbusinesses. This will allow CDFIs to withstand loan defaults due to the outbreak, which will allow them to provide more loans at lower interest rates to microbusinesses affected by the outbreak.
• CDFI Emergency Assistance Grant Program: A $1.25 million program that will provide grants of up to $250,000 to CDFIs to scale operations or reduce interest rates for the duration of the outbreak.
• NJ Entrepreneur Support Program: A $5 million program that will encourage continued capital flows to new companies, often in the innovation economy, and temporarily support a shaky market by providing 80% loan guarantees for working capital loans to entrepreneurs.
• Small Business Emergency Assistance Guarantee Program: A $10 million program that will provide 50% guarantees on working capital loans and waive fees on loans made through institutions participating in the NJEDA’s existing Premier Lender or Premier CDFI programs.
• Emergency Technical Assistance Program: A $150,000 program that will support technical assistance to New Jersey-based companies applying for assistance through the U.S. Small Business Administration. The organizations contracted will be paid based on SBA application submissions supported by the technical assistance they provide.

Learn more here→  and at cv.business.nj.gov →

You can also check out the NJ Emergency Assistance Eligibility Wizard at https://assistance.business.nj.gov/ →

 

Burlington County, NJ

The Burlington County Bridge Commission and Burlington County Freeholders are offering small businesses located in Burlington County, NJ with working capital loans for up to $10,000 for each job the employer retains, up to a maximum of $50,000. In addition to covering wages and salaries of employees, the loans can be used to pay for inventories, accounts payable and operational activities. Interest rates are 2.4375%, which is 75% of the prime rate currently set at 3.25%, and have a maximum payback period of 10 years. During the COVID-19 pandemic, the Freeholders will: (1) Expedite the review of loan applications, (2) expedite settlement of loans for eligible applicants, and (3) waive all application fees.
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Pennsylvania Businesses

Philadelphia Small Business Relief Fund: Loans & Grants

Administered by the Department of Commerce and Philadelphia Industrial Development Corporation (PIDC), the Philadelphia COVID-19 Small Business Relief Fund offers one-time grants or zero-interest loans to Philadelphia small businesses impacted by the COVID-19 pandemic. The Relief Fund includes three programs (and you can apply for all three in one application). A committee reviews all applications on a weekly basis and, after approval and completed paperwork, funds can be available in 1-2 business days.

• Microenterprise Grant: A $5,000 grant for Philadelphia micro-businesses with an annual revenue under $500,000. To apply, provide a signed tax return and a description of the impact of COVID-19 on your business, along with your recovery plan.
• Small Biz Grant: Up to $25,000 grant (determined by review of application) for small businesses with annual revenue between $500,000 and $3 million. To apply, provide a signed tax return, 2019 financial statements, proof of insurance, verification of cash flow, and a description of the impact of COVID-19 on your business, along with your recovery plan.
• Small Biz Zero-Interest Loan: A loan for $25,000—$100,000 (determined by review of application) for businesses with annual revenue between $3 million—$5 million. To apply, provide a signed tax return, 2019 financial statements, proof of insurance, verification of cash flow, and a description of the impact of COVID-19 on your business, along with your recovery plan. There are no collateral requirements.

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Pennsylvania Working Capital Access

The Pennsylvania Industrial Development Authority (PIDA) launched a COVID-19 Working Capital Access (CWCA) Program for Pennsylvania for-profit businesses with fewer than 100 employees. Businesses can apply for up to $100,000 to put towards critical working capital financing (which for purposes of this program is considered capital used by a small business for operations, excluding fixed assets and production machinery and equipment).

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Not-for-Profit Organizations

Southern New Jersey

Community Foundation of South Jersey’s South Jersey COVID-19 Response Fund: The CFSJ’s Response Fund will support local 501(c)3 non-profit agencies as they adapt internally and programmatically to assist neighbors and continue to deliver on their missions during this turbulent time. To do so, CFSJ will award a limited number of one-time program support grants to organizations operating in the Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean or Salem counties. The grant amounts are a minimum of $3,000 to 501(c)3 non-profit organizations providing critical services tied directly to the economic security of South Jersey residents.
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South Jersey & Philadelphia Counties

United Way of Greater Philadelphia and Southern New Jersey’s PHL COVID-19 Fund: Eligible 501(c)(3) nonprofits in Bucks, Chester, Delaware, Montgomery and Philadelphia counties in Pennsylvania and Atlantic, Burlington, Camden, Cape May, Cumberland counties in New Jersey can apply for grants, with amounts calculated based on the organization’s operating budget. Grants will be made on a rolling basis to address the most immediate needs first, keeping in mind that some needs likely will emerge over time.
Learn more→

 

Business Advice You Can Trust

We’re here for you. Contact an Alloy Silverstein Accountant and Advisor for tax and business guidance during these trying times. Contact us today.