The New Jersey Economic Development Authority will begin accepting applications for its expanded Micro Business Loan Program Tuesday afternoon.
Small businesses or nonprofits with 10 or fewer full-time employees and annual revenues of no more than $1.5 million will be eligible for financing of up to $50,000.
Loans through this program will have a 10- to 15-year term, with interest rates at 2% and no principal or interest payments for the first three years. Businesses that receive financing and are still open and in operation 12 months after the closing date of the loan will have 10% of the approved loan amount forgiven.
The loans can be used for inventory, the purchase of equipment or working capital.
The application can be found here. Applications will be accepted on a rolling basis.
The program, which was originally announced on June 9, is open to for-profit businesses with a business location in the state that have been in operation for at least one year as well as home-based businesses and not-for-profit organizations that have been in operation for at least two years. Startup businesses, defined under the program as business in operation between six months and one year, may also be eligible for the program, but will be required to provide a business plan and five-year financial projections with the application.
The EDA said $10 million in funding is available through the program and that $3.5 million will be set aside to support eligible entities located in Opportunity Zone-eligible census tracts.
EDA CEO Tim Sullivan said the program is a way the state is recognizing the importance of its smallest businesses.
“Micro businesses are a dynamic and often overlooked part of New Jersey’s economy — but they represent a large and growing segment of our business community, led in many cases by women and people of color,” he said. “With this purpose-built tool to support these unique businesses, we can help more entrepreneurs survive this current economic crisis and realize their long-term visions.”
Sullivan said the EDA acknowledges the extraordinary economic circumstances that make this program necessary and will waive all application and closing fees for the first three months from the date the application is opened.