[NFBNJ] NJEDA 👀Announces👀 Launch of the Application for Small Business Emergency Assistance Loan this Monday, April 13 at 9:00 am.

joe ruffalo nfbnj1 at verizon.net
Thu Apr 9 16:15:00 UTC 2020


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Joe

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From: North Jersey Chamber of Commerce
Sent: Thursday, April 09, 2020 12:01 PM
To: nfbnj1 at verizon.net
Subject: NJEDA 👀Announces👀 Launch of the Application for Small Business 
Emergency Assistance Loan this Monday, April 13 at 9:00 am.

      Pertinent Information & Guidance Concerning the Application Assistance 
Found Here!



                                The Latest Update Concerning You &
                                Your Business



                                NJEDA Announces Application Launch
                                for Small Business Emergency Assistance Loan 
to Go Live on Monday, April 13 at 9 am

                                In response to the economic challenges being 
faced by New Jersey small businesses due to the COVID-19 outbreak, the New 
Jersey Economic Development Authority (NJEDA) has created the Small Business 
Emergency Assistance Loan Program. The $10 million program will make direct 
low-cost financing available to allow New Jersey small businesses and 
non-profits to cover operating expenses and ensure continuity of operations 
during the outbreak.
                                You may now access a copy of the loan 
application to help you prepare your submission. 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…

                                a.. 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.

                                a.. Have been in existence for at least one 
year

                                a.. Have less than $5M annual revenue

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

                                a.. Are able to demonstrate negative impact 
related to COVID-19 on or after March 9th, 2020

                                a.. Are registered to do business in the 
State of NJ

                                a.. Must certify that the company is in good 
tax standing with the State

                                a.. 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
                                
                                a.. 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

                                a.. 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:

                                a.. Related to gambling or gaming activities

                                a.. 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)

                                a.. Auction or bankruptcy or fire or 
“lost-our-lease” or “going-out-of-business” or similar sale

                                a.. Traveling merchant

                                a.. Christmas tree sales or other outdoor 
storage

                                a.. Any other activity constituting a 
nuisance

                                a.. 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:
                                a.. 10-year term and amortization

                                a.. 0% interest rate (years 1-5), NJEDA’s 
prevailing interest rate floor (capped at 3.0% years 6-10)

                                a.. 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.
                                In order to apply for the loan, businesses 
will need to provide the following…
                                Contact information for someone who is 
authorized to speak on behalf of your company. For example: an owner or an 
executive such as a CEO or Executive Director

                                Basic information about your company:

                                a.. Registered legal name and “Doing 
Business As” name. To confirm your organization’s registered legal name: 
https://www.njportal.com/DOR/BusinessNameSearch/Search/BusinessName

                                a.. Federal Employer Identification Number 
(EIN)

                                a.. Date your company was established

                                a.. Number of Full-time employees as of 
December 31, 2019, Part-Time Employees as of December 31, 2019, and other 
workers (ie 1099 or contracted employees) as of December 31, 2019

                                a.. Prior year’s annual revenue

                                a.. Brief description about the organization 
(2-3 sentences about what you do)

                                a.. Formation documents

                                a.. Organization’s industry as defined by 
your NAICS code. To confirm your NAICS code, check your federal tax filing 
or use this site to look up your NAICS code: https://www.naics.com/search/
                                Ownership Information:

                                a.. Identify the owners of your organization 
and their respective percentage of ownership

                                a.. For those with 10% or more ownership 
interest, be prepared to provide: Filed Personal Federal Tax returns for the 
most recent 3 years; Personal financial statement
                                Corporate Financial Information:

                                a.. Up to 3 years of the most recent filings 
of your Corporate Federal Tax returns depending on number of years in 
existence

                                a.. Internally prepared statements (Profit & 
Loss and Balance Sheet), if 2019 has not been filed

                                a.. Interim statements (Profit & Loss and 
Balance Sheet), if internally prepared statements are greater than 90 days 
old

                                a.. Information relating to existing debts 
(type, creditor, date debt was incurred, maturity date, present balance, 
interest rate, minimum payment, extra payment , status, collateral for debt)

                                Identify Use of Loan Proceeds a. Depending 
on the category(ies) requested (payroll, rent/mortgage, taxes, utilities, 
etc.), be prepared to provide:

                                1.. Amount

                                1.. Timeframe that the request covers
                                
                                1.. Supporting documentation for each 
category (e.g.- if rent, provide lease)
                                If loan request does not cover all expenses 
listed, be prepared to identify and document sources to cover the gap (e.g.- 
equity, bank financing, etc.)

                                Identify potential collateral for the loan. 
List any unencumbered real properties that are owned:
                                1.. solely by the applicant business;

                                1.. by any individual having a 10% or more 
ownership position in the applicant, or

                                1.. by a related entity having the same 
ownership structure of the applicant and that property is occupied by the 
applicant.
                                Provide all leases associated with the 
listed commercial/investment properties.
                                Be able to answer the State’s basic 
debarment question. To see the full application and read the State debarment 
questions, see above.

                                Be able to affirmatively answer and/or 
certify that:
                                1.. You are not a home-based business
                                2.. You are not a prohibited business
                                3.. You have been impacted by the COVID-19 
outbreak
                                4.. You will make a best effort not to lay 
off any additional employees and re-hire any whom you have already laid off
                                5.. Information you are providing is correct
                                6.. You will allow the NJEDA to check your 
entries against other State sources of data
                                7.. You will authorize NJEDA to obtain a 
credit report on all guarantors
                                8.. You are current on all state 
obligations.

                                If a loan is offered, you’ll be asked to 
provide following:
                                1.. Evidence of proper business insurance 
coverages

                                1.. Copies of a government issued photo 
identification document for all individuals who may become party to the loan
                                
                                1.. ACH details to enable transmission of 
proceeds
                                
                                Updated: April 8, 2020
                                Source: NJEDA



                                Questions? Click HERE!







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