N.J. to allocate additional $235M in grants to small business relief programs

The state will make an additional $235 million in funding available to Phase 4 of the Small Business Emergency Grant Program, the Legislature and Gov. Phil Murphy announced Friday afternoon.

Murphy said the state also will create an Excluded New Jerseyans Fund, making $40 million available for direct cash assistance to residents who have been excluded from previous programs. (See more here.)

The largest chunk of the additional funding for Phase 4 of the Small Business Emergency Grant Program will go to microbusinesses — businesses with five or fewer employees. They will have an additional $120 million made available to them. The additional funding also includes $25 million for new businesses and startups.

Here is a breakdown of where the additional funding will go:

  • Microbusinesses: $120 million;
  • New businesses and startups: $25 million;
  • Bars and restaurants: $20 million;
  • Child care facilities: $10 million;
  • Sustain and Serve program: $10 million;
  • Other small businesses and nonprofits: $50 million.

The legislation was introduced in state Senate and General Assembly by a number of sponsors.

The New Jersey Economic Development Authority will oversee the programs — as it has throughout the pandemic.

State officials hope the additional funding will fulfill all eligible pending Phase 4 small business grant requests. EDA will begin accepting applications for the extended Phase 4 in the near future, state officials said.

In April, Murphy signed five bills allocating $100 million in federal COVID relief funds for small businesses, including: