COVID-19 Economic Relief Package NJEDA initiatives aimed at - PowerPoint PPT Presentation

COVID-19 Economic Relief Package NJEDA initiatives aimed at stabilizing and revitalizing local small businesses, mid-size businesses, and other early-stage companies March 31, 2020 1

We have developed our economic stability approach around three core principles 1. Get funding into the market as soon as possible ► Where possible, adjust existing NJEDA programs to address crisis needs ► Utilize multiple channels / partners to maximize marketing of programs and minimize processing capacity constraints 2. Leverage private, federal, and philanthropic capital where possible to scale impact 3. Provide a suite of compatible offerings to help address varied marketplace needs (e.g., grants, no-cost loans, low-cost loans, loans through intermediaries, technical assistance) 2

COV OVID ID-19 19 Economic onomic Re Relief ief Packag ckage SMAL ALL BUSI SINE NESS SS EM EMER ERGENC GENCY ASSI SSIST STANCE ANCE GRANT ANT PROGRAM GRAM SMALL ALL BUSI SINESS NESS EM EMER ERGENCY GENCY ASS SSIST STANCE ANCE LOAN AN PROG OGRAM RAM PROGR GRAMS MS TO MOBILIZE ILIZE CAPI PITAL AL TO MICRO-, , SMALL ALL, & MED EDIUM IUM-SIZE ZED D BUSI SINESS NESSES CDF CDFI I Fi First t Loss Loss Res eserv rve Fu Fund Emergency Assi Em ssistance Gua Guarantee En Entrepreneur Su Support Prog ogram NJ TE TECHNI NICA CAL ASSIST SISTANCE ANCE SUPP PPOR ORT CREDI EDIT FLEXI EXIBILIT BILITY TO SUPP PPOR ORT BUSI SINE NESS SSES 3

SMALL BUSINESS ESS EMERGEN GENCY Y ASSIST STANCE CE GRA RANT NT PR PROGRA RAM Operating expense grants of up to $5K NJEDA Program Size to small businesses with 1-10 FTE $5M in highly impacted industries (initial wave) Business Eligibility   Industries, as determined by NAICS code: Physical commercial location in NJ  Retail Must be registered to do business in New Jersey o Accommodation & Food Service o  Department of Labor good standing Arts, Entertainment, & Recreation, Repair & Maintenance; o Personal & Laundry Services  1- 10 FTE per Company’s 2019 4 th Quarter NJ-WR30 filing (Eligible NAICS codes that start with o with the Department of Labor: visit 44, 45, 71, 72, 811, 812) https://forms.business.nj.gov/grant-size/ to estimate your  Non-profit entities in the above industries are permitted to FTE receive grant funding if they also have the following  Must fill out and certify simplified debarment legal designations: 501(c)(3), 501(c)(4), and 501(c)(7) questionnaire  Must certify to negative impact of emergency 4

Grant Application Screen Shots: Contact information Application window opens on: Friday, April 3 rd 9:00am ET Application window closes on: Friday, April 10 th 9:00am ET Application will be available at: https://cv.business.nj.gov 5

Grant Application Screen Shots: Information about your business 6

Grant Application Screen Shots: Information about your industry (1/2) 7

Grant Application Screen Shots: Information about your industry (2/2) 8

Grant Application Screen Shots: Business Details 9

Grant Application Screen Shots: Additional Background and Certifications (1/2) 10

Grant Application Screen Shots: Additional Background Information Question about prior convictions Questions about license or permit denials or revocations Question about public debarment Question about breaking the terms of an agreement with a public agency Question about any injunction orders in favor of a government agency Question about ongoing criminal or civil proceedings 11

Grant Application Screen Shots: Certifications (1/2) False statements can be prosecuted Dept. of Law can verify my answers Best effort not to lay off employees and rehire those that have already been let go I have been negative impacted by COVID-19 This grant is needed by my business NJEDA can share information with specific parties to execute this grant I am in good standing with the Departments of Labor and Taxation I am signing this electronically 12

Grant Application Screen Shots: Certifications (2/2) 13

Grant Application Screen Shots: Confirmation 14

Grant Award Size Estimate Calculator Screen Shot Available at: https://cv.business.nj.gov 15

SMA MALL BUSINES NESS S EME MERGENC GENCY Y AS ASSIST STAN ANCE CE LOAN AN PR PROGRA RAM Up to $100K working capital loans for NJEDA Program Size up to 10 years for businesses with $5 $10M million or less in revenue; 0% for years (initial wave) 1-5; 1-3% for years 6-10. Business Eligibility  $5M or less annual revenue  Minimum Global Debt service  Must show negative impact of ratio of 1.0 based on the year emergency (e.g., closure, reduced  Physical commercial location in prior to the declaration of hours, 20% revenue drop, New Jersey emergency 20%, etc.)  At least 1 year in existence  Tax Clearance; Department of  Additional conditions may apply  Must be registered to do business Labor good standing  Must fill out and certify simplified in New Jersey  Minimum Credit Score of 600 for debarment legal questionnaire at least one guarantor 16

PR PROGRA RAMS S TO MOBILIZE ZE CAPI PITAL TO MICRO-, , SMALL, & MEDI & ME DIUM-SIZED SIZED BUSINESSE ESSES CDFI First Loss Reserve Fund NJEDA Program Size $10M capital reserve fund for first-loss position, $10M up to 50%, on CDFI loans that provide low/no- (initial wave) interest loans to micro and small businesses Eligibility  Federally-certified, NJ-based CDFI  CDFI Loans that are guaranteed must:  Have the operational and financial capacity Be to an impacted business o to use the guarantee effectively Be focused on working capital o Not exceed $75,000  Have significant experience working with underserved o Have an interest rate of 3.75% or less business segments and in communities underserved by o other banks Not exceed a term of five years o Provide flexible loan structures  Must fill out and certify simplified debarment legal o questionnaire 17

PROGRA PR RAMS S TO MOBILIZE ZE CAPI PITAL TO MICRO-, , SMALL, & MEDI & ME DIUM-SIZED SIZED BUSINESSE ESSES Emergency Assistance Guarantee NJEDA Program Size $100,000 Maximum guarantee, 50% guarantee $10M of working capital loans, take first loss position; (initial wave) no fees Business Eligibility  Must work through a Premier Lender bank  Must show negative impact of emergency (e.g., or Premier CDFI closure, reduced hours, 20% revenue drop, supply chain disruption, etc.)  $5M or less in revenue  Must fill out and certify simplified debarment legal  Physical commercial location in NJ questionnaire  At least 1 year in existence  Tax Clearance; Department of Labor good standing  All industries eligible  Non-profits are eligible 18

PROGRA PR RAMS S TO MOBILIZE ZE CAPI PITAL TO MICRO-, , SMALL, & MEDI & ME DIUM-SIZED SIZED BUSINESSE ESSES NJ Entrepreneur Support Program NJEDA Program Size Provide 80% loan guarantees for working $5M capital loans to start-up entrepreneurs (initial wave) Eligibility  Must be NJ-based start-up company (registered to  Align with the Governor’s Economic Plan do business, C-suite in the State)  Must fill out and certify simplified debarment legal  Under $5M in revenue; under 25 people questionnaire  Investors have already provided funding in the form  Tax Clearance; Department of Labor of a convertible note, safe or equity interest. good standing  Investor does not need to be NJ-based  Minimum of 50% of employees in NJ 19

NJ TECHN HNIC ICAL ASSISTANCE CE SUPP PPORT Support for organizations providing technical NJEDA Program Size assistance to COVID-19 Impacted Small Businesses $150K Applying for SBA Funding Programs (initial wave) This assistance includes, but is not limited to, preparing financial information, packaging application documentation, and completing and submitting the on-line or paper-based application. • • African American Chamber of Commerce Rising Tide Capital of New Jersey (AACCNJ) • Statewide Hispanic Chamber of Commerce • New Jersey State Veterans Chamber of of New Jersey (SHCCNJ) Commerce 20

CRE REDI DIT T FLEXIB XIBILI ILITY Y TO SUPP PPORT T BUSINESSES ESSES Ability to provide flexible terms to portfolio customers impacted by COVID 19 Expanded delegations to provide quick cash flow relief and to facilitate business access to funding for working capital to continue operations and employment in New Jersey through:  Payment Moratoria  Loan Maturity Extensions  Subordinations  Fee Waivers 21