New Jersey businesses reeling from the fallout of the coronavirus have been engulfed this week by a wave of financial assistance as a slew of new programs to help them survive financially became available.
While the help is greatly welcome, sorting through all of the different programs, applications and instructions can be overwhelming. To help, NJBIA has gathered them here in one spot. Think of it as a one-stop shop for economic assistance. Also, check out the “Grants and Loans” section of NJBIA’s Coronavirus Resources page.
The Paycheck Protection Program
The Paycheck Protection Program (PPP) is Small Business Administration (SBA) Chapter 7a loan program created specifically to address the economic fallout of the coronavirus. The program is designed to provide businesses with loans to cover the cost of eight weeks’ worth of operating expenses.
Primarily, the goal is to give businesses the ability to continue to pay their employees even if they are closed or had their operations severely restricted to prevent the virus’ spread.
If you do not have a regular SBA lender, here is a list of Participating NJ Banks approved by the U.S. Small Business Administration.
Economic Injury Disaster Loans (EIDL)
This is similar to the traditional SBA disaster loans but with a streamlined processing to help get funding out quickly. Loans are capped at $2 million per business. Unlike the PPP, this program is administered directly by the SBA. The application process starts here.
As part of the program, SBA is offering an almost immediate $10,000 emergency grant. All you have to do is ask for it when applying.
If you already have a relationship with an SBA-approved lender, and that lender has already been offering bridge loans, you could get a bridge loan of up to $25,000. The loan would come from the bank, with SBA guaranteeing 50% of the amount.
Bridge loans offer a fast turnaround for approval and could help businesses that are in need of some fast cash. Go here for the program guide.
If you have a past Chapter 7a SBA loan or get a new one, the SBA may pay off a portion of it. Under the SBA Debt Relief program, the SBA will pay the principal and interest of new 7(a) loans issued prior to Sept. 27, 2020 and the principal and interest of current 7(a) loans for a period of six months.
Contact your SBA-approved lender on this program for more details.
Help with SBA Applications
The New Jersey Economic Development Authority has partnered with local organizations that are available to help businesses fill out the applications. They are:
- African American Chamber of Commerce of New Jersey (AACCNJ)
- New Jersey State Veterans Chamber of Commerce
- Rising Tide Capital
- Statewide Hispanic Chamber of Commerce of New Jersey (SHCCNJ)
Payroll Tax Credits
The IRS has pledged to fully cover the cost of payroll taxes with refundable tax credits for employers who keep employees on the payroll during their restricted periods. The program is designed to make it easier for employers to keep employees on the payroll.
NOTE: If you receive a Paycheck Protection loan, you may not qualify for the tax credits.
NJEDA Emergency Grants
The EDA put what resources it had available into emergency grants for the very smallest businesses and began accepting applications Friday morning. If you have fewer than 10 employees, review NJEDA’s slide presentation from NJBIA’s webcast, which contains a screenshot of each application page, then go here to fill out the NJEDA application.
Advanced Medicare Payments for Healthcare Providers
CMS is authorized to provide accelerated or advance payments during the period of the public health emergency to any Medicare provider or supplier who submits a request to the appropriate Medicare Administrative Contractor (MAC) and meets the required qualifications. These include having billed Medicare for 180 days immediately prior to the request and generally be in good financial standing with the agency (not in bankruptcy, under investigation, etc.).
To apply, complete the application form from the MAC in your jurisdiction.