small business – Project Development/Infrastructure/P3

August 19, 2020August 19, 2020 by Brad A. Molotsky

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!

April 4, 2020April 6, 2020 by Brad A. Molotsky

NJ: NJEDA Announces April 13th – Application Launch Date for Loan Program for Small Businesses impacted by COVID-19

The New Jersey Economic Development Authority (NJEDA) will launch the application for its Small Business Emergency Assistance Loan Program on Monday, April 13, 2020 at 9:00 am. A link to the program application will be posted on the State’s COVID-19 Business Information Hub. To provide business owners the opportunity to prepare to apply for the loan, a .pdf version of the application will become available on Monday, April 6^th. The loan program is part of a package of initiatives announced last week to support businesses and workers facing economic hardship due to the outbreak of the novel coronavirus COVID-19.

A copy of the loan application will be available Monday, April 6, 2020, to provide business owners with the opportunity to prepare. Completed applications will be considered on a first come, first serve rolling basis. To see whether you might qualify for this program, use the NJ COVID-19 Business Support Eligibility Wizard.

The Small Business Emergency Assistance Loan program is designed to provide a direct loan of up to $100,000 to NJ-based small businesses and non-profits organizations that have been in existence for at least one-year and has less than $5 million in annual revenue. These businesses much have been negatively impacted by the COVID-19 outbreak (including, but not limited to: reduction of business hours, complete closure of business, at least a 20% decline in revenue, employees unable to work, required to close by government, or disruption of supply chain).

Your organization is eligible for the Small Business Emergency Assistance Loan Program if you…

Have a physical commercial location in the State of NJ. Home-based businesses are not eligible for this program. 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 year
Have less than $5M annual revenue
Can show a global debt service coverage ratio of 1.00 (as of December 31st, 2019)
Are able to demonstrate negative impact related to COVID-19 on or after March 9th, 2020
Are registered to do business in the State of NJ
Must certify that the company is in good tax standing with the State
Are in good standing with the Department of Labor and Workforce Development, with all decisions of good standing at the discretion of the Commissioner of the Department of Labor and Workforce Development
Are able to provide a CEO certification that the firm will make its best-effort to not lay off employees or will re-hire employees as soon as possible
Non-profit organizations are eligible for this program; eligible non-profits must have status of 501(c)(3), 501(c)(4), 501(c)(7)

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

This program is structured specifically for entities facing economic challenges due to COVID-19 and provides low-cost and flexible terms, such as:

10-year term and amortization
0% interest rate (years 1-5), NJEDA’s prevailing interest rate floor (capped at 3.0% years 6-10)
Deferred repayments for 12 months

There are no fees associated with the Small Business Emergency Loan Program for the first five years of the loan, including application fees, and then standard modification fees will apply.

About Duane Morris:

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.

For Further Information:

If you have any questions about this Alert, please contact Brad A. Molotsky, James Greenberg, Dan Mita or any member of our COVID-19 Strategy Team or the attorney in the firm with whom you are regularly in contact.

April 2, 2020June 11, 2020 by Brad A. Molotsky

NJ – NJEDA – Small Business Emergency Assistance GRANT Program – opens Friday, 4-3-20 at 9 am

The New Jersey Economic Development Authority (NJEDA) will launch the application for its Small Business Emergency Assistance Grant Program tomorrow, Friday, April 3, 2020 at 9:00 am. If you are thinking of applying, a link to the grant program application will be posted on the State’s COVID-19 Business Information Hub. The grant program is part of a package of initiatives announced last week to support businesses and workers facing economic hardship due to the outbreak of the novel coronavirus COVID-19.

This Grant program is a $5M program that will provide grants up to $5,000 to small businesses in retail, arts entertainment, recreation, accommodation, food service, repair, maintenance, personal and laundry services.

Eligibility Guidelines for Small Business Emergency Assistance Grant Program:

Businesses applying for the Small Business Emergency Assistance Grant Program must provide:

· A contact who is authorized to speak on behalf of the company.

· Basic information about the company:

· Registered legal name and “Doing Business As” name (available here: https://www.njportal.com/DOR/BusinessNameSearch/Search/BusinessName;

· Federal Employer Identification Number (EIN);

· Year your company was established;

· Full-time employees as of December 31, 2019 and Part-Time Employees as of December 31, 2019.

· Industry as defined by your NAICS code (available here: https://www.naics.com/search/).

· Answers to the State’s basic debarment questions (See .pdf of application here: https://cv.business.nj.gov).

· Certification that the business:

· Is not a home-based business;

· Is not a prohibited business;

· Has been impacted by the COVID-19 outbreak;

· Has a material financial need that cannot be overcome without the grant funds;

· Will make a best effort not to lay off any additional employees and re-hire any whom have already been laid off;

· The NJEDA may check your entries against other State sources of data.

NJEDA has developed an online Grant Award Size Estimate Calculator to help eligible businesses understand what their potential grant size might be.

About Duane Morris:

For Further Information:

If you have any questions about this Alert, please contact Brad A. Molotsky or James Greenberg or any member of the COVID-19 Strategy Team or the attorney in the firm with whom you are regularly in contact and we can direct your inquiry to the appropriate place.

Be Well. Stay Safe. Stay Vigilant.