On April 24, 2020, the Paycheck Protection Program and Health Care Enhancement Act of 2020 was signed into law. The new law expands and modifies the significant new resources for businesses from the U.S. Small Business Administration (SBA) that were established in previous legislation, including the CARES Act, replenishing funding for both PPP and EIDL loans.
The U.S. Senate Committee on Small Business and Entrepreneurship has prepared a Small Business Owner’s Guide to the CARES Act on all of the forthcoming federal resources. SBA has also established a dedicated page of Coronavirus (COVID-19): Small Business Guidance & Loan Resources for all current and pending assistance pertaining to economic relief during the current crisis.
Also on April 24, the New Jersey Economic Development Authority (NJEDA) announced that Goldman Sachs, in partnership with Pursuit, has committed $10 million to loans for small businesses in New Jersey. The commitment is part of Goldman Sachs’s 10,000 Small Businesses initiative. Visit the website to see loan applications currently available.
The loans will be made through the U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP). They provide a new opportunity for small businesses and nonprofits that have been unable to submit a PPP application through another lending institution. Loans made through this program can be used for payroll costs, interest on mortgages, rent, and utilities. Businesses that receive financing through the program can have their loans partially or wholly forgiven if they maintain or rehire their workforce after the COVID-19 outbreak is controlled.
Additionally, all New Jersey counties are now approved for federal disaster assistance, making New Jersey businesses eligible to apply for Economic Injury Disaster Loans (EIDLs). These are working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
To see whether you might qualify for this program, use the NJ COVID-19 Business Support Eligibility Wizard.
The State of New Jersey has also compiled information regarding other federal competitive grant opportunities, some of which are open to businesses.
Contact: Jon Moran, Senior Legislative Analyst, jmoran@njlm.org, 609-695-3481 x121