NJEDA Now Accepting Applications for Small Business Improvement Grant

As part of the New Jersey Economic Recovery Act of 2020 (NJERA), $15 million has been set aside to reimburse NJ small businesses for costs associated with making building improvements or purchasing new equipment. Applications are being accepted as of February 10, 2022 and will be accepted on a rolling basis until funding is exhausted.

Of the $15 million, 40 percent ($6 million) will be reserved for businesses and nonprofits located in Opportunity Zone eligible census tracts.

NJERA Small Business Improvement Grant (SBIG): The Details

Businesses may be reimbursed for 50% of eligible total project costs up to $50,000 for capital improvements, or purchase and/or installation of new furniture, fixtures, and equipment (FFE).

Only one award is permitted per EIN for the life of the program. Entities operating in multiple locations under a single EIN are limited to one application under the sole EIN, but a single application may include project costs across multiple locations.

Project must have commenced on or after March 9, 2020 and within the 2 years prior to your application date. Payment for the submitted costs must have been made within 2 years prior to your application date. You must have documentation to substantiate costs.

Grant recipients must remain in the location for at least two years for grants up to $25,000, or at least four years for all other grant award amounts.

Eligibility for the Small Business Improvement Grant

• Open to nonprofits and commercial small businesses (must meet SBA definition of a Small Business – determined by employee count and NAICS code).
• Total project cost must be at least $5,000.
• Applicant must rent or own facility being improved.
• Eligible applicants must be in good standing with Department of Labor and Department of Environmental Protection, are not in default of any other EDA or State assistance, and must provide a current tax clearance certificate prior to approval.

Who is Not Eligible?

Home-based businesses are not eligible for reimbursement for renovation or improvement projects, but may only receive reimbursement for new equipment purchased and/or installation. For purposes of home-based businesses, allowable furniture and equipment must be used exclusively for the business and must not be attached to the building.

Landlords are also not eligible. However, if applicant leases the space, then landlord’s permission to make improvements is required.

Per the NJEDA, “capital improvements” shall not include site acquisition; vehicles and heavy equipment not permanently located in the building, structure, facility, or improvement; any capital improvement for which the business received any grant financial assistance from any State source; costs of a lease, including any capital lease; or any soft costs. Any software required to operate the new equipment would not be considered eligible for reimbursement.

Grant Application

CLICK HERE TO APPLY.

Note, there is a $100 approval fee, payable at the time of approval and prior to execution of the grant agreement.

Click here for the NJEDA webpage with an applicant checklist, FAQ handout, and more details on the Small Business Improvement Grant.

As always, Alloy Silverstein is here to help your business learn of these opportunities and from start to finish in the application process. Reach out to an accountant and advisor today to discuss your options.