COVID-19: NJ announces Small and Micro Business PPE Access Program

On August 11, Governor Murphy announced the first phase of the NJ Small and Micro Business PPE Access Program (the “PPE Program”). The goal of the PPE Program is to provide small businesses and non-profits with access to the fairly priced personal protective equipment (PPE) necessary to facilitate safe working conditions during the COVID-19 pandemic.

Under the PPE Program’s first phase, the State will launch a new website that provides micro and small businesses with the information needed to make easier and better PPE sourcing decision. The website will also offer a vetted list of online retailers that have agreed to verify the quality of the PPE they are selling and offer at least a 10% discount to businesses who enter through the State’s website.

Online retailers will be vetted on a first-come, first serve basis by the NJEDA, and must agree to certain performance standards for their site (e.g., transparent pricing, high-quality products, etc.). Vetted online retailers will also be eligible to access an NJDEA grant pool of up to $3.5M to support the purchase of PPE that is manufactured in New Jersey or sourced from a small wholesaler based in a historically underserved community.

Applications to become one of the NJ PPE Access Program Designated Vendors are expected to open in the near future.

Guidelines for practically all sectors require businesses to provide PPE to their employees. This new NJEDA program is geared toward smaller-sized businesses that have few funds to spare for the new costs.

This first phase of $4 million in funding is meant to encourage wholesalers’ purchase of PPE made or assembled in New Jersey. They would be eligible for subsidies of up to 20 percent of what they spent to get the equipment if it’s sourced in New Jersey, or from wholesalers in “historically underserved communities.”

A second funding, of approximately $11 million, is meant to cover the costs for smaller-sized and microbusinesses to purchase the equipment. The NJEDA expects 50,000 separate New Jersey businesses to spend a combined $45 million on PPE, with support from the new state subsidy.

Interested parties can also reach out to NJEDA staff at:  www.SmallBusinessPPE@njeda.com.

Duane Morris has created a COVID-19 Strategy Team to help organizations plan, respond to and address this fast-moving situation. Contact your Duane Morris attorney for more information. Prior Alerts on the topic are available on the team’s webpage.

If you have any questions about this post, please contact Brad A. Molotsky, Elizabeth Mincer or the attorney in the firm with whom you are regularly in contact.

Be well and stay safe!