The New Jersey Economic Development Authority (NJEDA) has made changes to the Main Street Micro Business Loan Program, removing the requirement for personal guarantees from owners of micro businesses.
The Main Street Micro Business Loan will provide financing of up to $50,000 to eligible micro businesses in New Jersey whose annual gross revenues are $1,500,000 or less, and has 10 or fewer full-time employees at the time of application and three months prior to the date of application
The NJEDA will start accepting applications for the program on Thursday, October 6, 2022, at 10 a.m.
Eligible for-profit and nonprofit businesses registered to do business in New Jersey, including home-based businesses, can apply for financing from the $20 million in funds allocated from the Main Street Recovery Fund to cover future operating expenses only such as inventory, rent, payroll, equipment or any other working capital expense to fund business operating expenses. The loan will have a standard 10-year term and the interest rate will be 2 percent, with no interest and no payments due for the first year. The Main Street Micro Business Loan also has a substantial forgivable component.
Eligibility requirements for micro businesses interested in applying for this program include:
• Must have less than $1.5 million in annual gross revenue for the most current fiscal year (to the extent the business has annual revenues)
• Must have no more than 10 full-time employees at the time of application and three months prior to application
• Must be legally registered to do business in New Jersey, with a business location (including a home office) in New Jersey
• Must have been formed at least six months prior to the date of application.
• Must be in good standing with the New Jersey Department of Labor and Workforce Development (LWD) and the NJ Department of Environmental Protection at the time of application
Must provide a current tax clearance certificate prior to approval to demonstrate the applicant is in good standing with the NJ Division of Taxation.
Applications for the Main Street Micro Business Loan will be reviewed on a first-come, first-served basis, based on the date/time at which the Authority receives the completed application. Past recipients of the Micro Business Loan Program are eligible to apply for the Main Street Micro Business Loan. Due to the favorable terms of this product only one application per EIN is allowed.
The NJEDA will host an information session on the Main Street Micro Business Loan on Monday, September 26, at 2 p.m. EDT. To register for this online session, visit njeda.zoom.us/webinar/register/WN_5JUnXXxCQkS53AQryGzAWQ