Nonprofits Access Small Business Pandemic Loans

New Jersey Gov. Phil Murphy has signed a law authorizing nonprofits and small businesses to receive up to $15 million in coronavirus relief-related federal grants. The legislation, A. 5446, is part of a five-bill set that will provide up to $100 million in targeted aid to New Jersey enterprises and others suffering from the effects of the pandemic.

Under the terms of the new legislation, the New Jersey Economic Development Authority (NJEDA) is charged with distributing the funds to nonprofit organizations and businesses within the state, with an eye toward preventing further nonprofit organization and business closures, preserving and creating jobs and spurring economic recovery.

“Providing financial support to businesses and nonprofits is fundamental to their survival during the pandemic,” New Jersey state Senator Joseph Lagana (D-Bergen and Passaic) said via a statement.

“Local businesses create vibrant downtowns and communities, while nonprofits can efficiently and effectively provide services for people in need,” Lagana continued. “Together, they will play a central role in New Jersey’s economic recovery and the quality of life for our residents.”

Nonprofits and small businesses will have their potential grant awards based in part on how many full-time employees they have. Those with five or fewer are eligible to receive up to $10,000; those with six to 25 full-time employees may receive up to $15,000, and those with 26 to 50 full-time employees may be granted up to $20,000.

Organizations interested in being considered will need to pre-register at https://programs.njeda.com before Thursday, April 29 at 5 p.m. Organizations that do not pre-register will not be considered for grants.

Additional details are available here: https://www.njeda.com/notice-of-funding-availability-small-business-emergency-assistance-grant-program-phase-4/

Murphy had signed previous bills giving $35 million to New Jersey restaurants, $25 million to microbusinesses and $15 million to arts and cultural institutions. At the same time the New Jersey Democrat signed A. 5446, he also signed another bill designating $10 million for child care providers.

In addition to Lagana, the bill was sponsored by New Jersey state Senator Linda Greenstein (D-Mercer and Middlesex) and Assembly Members Joann Downey (D-Monmouth), Andrew Zwicker (D-Hunterdon, Mercer, Middlesex and Somerset) and Sterley Stanley (D-Middlesex). The money is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020.