November 30, 2020

Volume X, Number 335


November 30, 2020

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Small Business Emergency Assistance Loan Program

The New Jersey Economic Development Authority (NJEDA) has approved a series of aid packages for small/mid-size businesses in the amount of $75 million. The NJEDA programs focus on businesses that have been hit the hardest by COVID-19.

One of the NJEDA programs, the Small Business Emergency Assistance Loan Program is a $10 million program that will provide up to $100,000 towards working capital loans to businesses and eligible non-profits with less than $5 million in revenues.

The Small Business Emergency Assistance Loan applications will open April 13, 2020 at 9:00 a.m.

Completed applications will be considered on a first come, first serve rolling basis. Applications will be available through this link:

  • Loan Terms

    • Up to $100,000 towards working capital loans to businesses and eligible non-profits;

    • 10 year term and amortization;

    • 0% interest rate for the first 5 years, then resetting to the NJEDA’s prevailing floor rate (capped at 3%) for the remaining five years;

    • Deferred repayments for 12 months;

    • 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.

  • Eligible businesses:

    • Have a physical commercial location in the State of New Jersey  (home-based businesses are not eligible);

    • Have been in existence for at least one full year;

    • Have $5 million or less in annual revenue;

    • Can show a global debt service coverage ratio of 1.00 (as of December 31st, 2019);

    • Can demonstrate a negative impact on business due to the COVID-19 outbreak on or after March 9th, 2020 (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);

    • Can provide CEO certification that you are making a best-effort to not lay off employees or will re-hire employees as soon as possible;

    • Are registered to do business in New Jersey and must certify that the company is in good tax standing with the State;

    • Are in good standing with the New Jersey Department of Labor and Workforce Development;

    • Non-profit organizations are eligible for this program; eligible non-profits must have status of 501(c)(3), 501(c)(4), 501(c)(7).

  • The following businesses are not qualified (“Non-Eligible Businesses”):

    • 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 merchants;

    • Christmas tree sales or other outdoor storage;

    • Any other activity constituting a nuisance;

    • Illegal under the laws of the State of New Jersey.

COPYRIGHT © 2020, STARK & STARKNational Law Review, Volume X, Number 99



About this Author

Rachel Lilienthal Stark Banking & Financial Services Attorney Stark & Stark Lawrenceville, NJ

Rachel Lilienthal Stark is a Shareholder and member of the Banking & Financial Services, Business & Corporate, Intellectual Property and Non-Profit Organization Groups. Ms. Stark concentrates her practice in the representation of start-up and emerging companies and non-profit organizations on a variety of issues including corporate formation, financing, franchising, licensing, acquisitions, executive compensation, equity compensation plans, employment agreements, real estate and intellectual property law. Ms. Stark also represents lenders in commercial loan transactions.


Dolores Kelley, Stark and Stark Law, Real Estate Lawyer, Zoning and Land Use Attorney, FDA Litigator

Dolores R. Kelley is a Shareholder and member of Stark & Stark’s Business & Corporate, Real Estate, Zoning & Land Use and Beer & Spirits Groups, where she concentrates her practice in the representation of start-up and emerging companies, breweries, distilleries, and non-profit organizations on a variety of issues including corporate formation, financing, licensing, acquisitions employment agreements and intellectual property law. Dolores also handles a wide range of matters for the real estate industry, including commercial transactions, leasing, condominium and homeowner...