Here’s how small businesses can get a loan of up to $100,000 – interest free for 5 years

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Pre-registration for phase 2 of the Economic Development AuthorityThe small business emergency relief loan program — which could be worth up to $100,000 interest-free for the first five years — will start Feb. 10, the EDA announced on Wednesday.

The second phase of the $10 million program will make up to $100,000 in low-cost funding available to eligible New Jersey small businesses and nonprofits to assist with recovery and reopening efforts at the following COVID-19. Funding can be used to pay rent or mortgage, payroll and/or utilities. It can also be used to purchase personal protective equipment or COVID-related inventory, furniture, fixtures or equipment.

Program applications will be considered on a first-come, first-served basis, with priority given to applicants who have not received more than $10,000 in government assistance from any federal, state, or local (county/municipal).

Any business or entity that intends to apply for a loan must first pre-register between 9 a.m. on February 10 and 5 p.m. on February 22. New Jersey COVID Business Information Portal.

Only entities that pre-register will then be able to access the program application starting at 9 a.m. on February 24.

To be eligible for funding through Phase 2 of the program, small businesses and nonprofits must be in existence and operating since at least February 24, 2020, have an annual revenue of $5 million or less, and have a business location. physics in New Jersey. . They must also be able to describe how they have been negatively affected by the COVID-19 outbreak. Home-based businesses and real estate holding companies are among the entities that are not eligible for funding under this program.

Under the terms of Phase 1 of the program, Phase 2 loans will have tenors of 10 years with zero percent interest for the first five years, then reset to the prevailing NJEDA floor rate for the next five years. remaining, with a cap of 3%. .

Most eligible businesses will be able to apply for up to $100,000, but if a business has been approved for a loan under Phase 1 of the Small Business Emergency Loan Program, they will only be eligible under of phase 2 only for an amount that will not exceed $100,000. in both phases. To promote equity, $3.5 million of the funding will be earmarked for businesses in Opportunity Zone-eligible census tracts.

EDA CEO Tim Sullivan said the program is another way the state is trying to support businesses.

“New Jersey businesses continue to feel the economic toll of COVID-19 as the pandemic drags into 2021,” he said. “As we begin to see the second plateau of the COVID wave, we are encouraged that there is a light at the end of the tunnel representing the economic recovery we are working towards. This recovery can only be achieved by connecting small business owners to the resources they need to emerge from the pandemic.

“We are grateful for the ownership of USEDA, which will allow us to reach more small businesses across the state.”

NJEDA originally established its Spring 2020 Small Business Emergency Relief Loan Program as part of a suite of resources for small businesses and nonprofits following Governor’s signing Phil Murphy of Executive Order 103, declaring a state of emergency and a public health emergency. The program’s first round of funding resulted in more than 150 companies being approved for a total of more than $10.4 million.

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