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There are roughly 1.1 million small businesses in New Jersey, representing 99.7% of all businesses in the state. Collectively, NJ’s small business owners employ nearly 2 million individuals, which is almost 49% of the state’s total workforce.
To make it easier for small businesses to flourish in NJ, the state offers a range of funding opportunities, including small business grants. Unlike business loans, business grants generally do not need to be repaid.
While competition for NJ small business grants can be stiff, it’s a good idea to explore any possible grant opportunities your startup or business might qualify for. Read on to learn more about how to get a small business grant in NJ, plus other ways you may be able to get the capital you need to start or grow your business in the Garden State.
Key Points
• New Jersey offers a variety of small business grants to help launch or grow businesses.
• In NJ, grant money is more likely to support businesses in certain sectors, including advanced manufacturing, clean energy, and more.
• General requirements include good standing with state agencies, tax clearance, and wage commitments.
• NJEDA provides resources like an Eligibility Wizard and free consultations for grant applications.
• Alternative funding sources such as microloans, SBA loans, and business lines of credit are also available.
Grants for Small Businesses in NJ
If you’re looking for state of NJ grants for your small business, here are some options to consider.
Food Retail Innovation in Delivery Grant (FRIDG) Program
• Program description: The FRIDG program provides independent NJ supermarkets and other eligible food retailers with funds to buy temperature-controlled storage lockers. These lockers, which facilitate food delivery, must be installed in food desert communities within New Jersey.
• Incentive: Up to $250,000 in reimbursements (30% to 50% of total project costs) to subsidize the purchase of self-contained, temperature-controlled lockers for grocery delivery.
• General requirements:
◦ Be an independent or chain supermarket owner or other qualifying food retailer
◦ Have a physical retail location in New Jersey
◦ Have the ability to service and make deliveries to a locker that’s located in a designated food desert community (FDC)
◦ Be in good standing with NJ state agencies, including the Division of Taxation, the Department of Environmental Protection (NJDEP), and the Department of Labor and Workforce Development (NJDOL)
• How to apply: You can complete and submit a FRIDG application through the New Jersey Economic Development Authority (NJEDA) website. There is a non-refundable application fee of $1,000.
Small Business Improvement Grant
• Program description: The Small Business Improvement Grant offers partial reimbursement to small businesses and nonprofits who spend at least $5,000 on capital improvements or new furniture, fixtures, and equipment.
• Incentive: Reimbursement of up to 50% of eligible project costs; amount capped at $50,000.
• General requirements:
◦ Be a small business that rents or owns commercial property; landlords are not eligible
◦ Meet the SBA definition of a small business for your sector, as determined by employee count
◦ Project cost of $5,000 or more; may include capital improvements, furniture, fixtures, and equipment
◦ Payment must have been made within the two years prior to your application date
◦ Provide a current tax clearance certificate prior to approval
◦ Be in good standing with NJDOL and NJDEP
◦ Not in default of any NJ state assistance programs
◦ Certify willingness to pay wages that are either $15 per hour or 120% of the minimum wage, whichever is greater
◦ Remain in the location for at least two years (for grants up to $25K); for all other amounts, remain for at least four years
• How to apply: You can complete and submit a Small Business Improvement Grant application through the New Jersey Economic Development Authority (NJEDA) website. You must pay a $100 approval fee before you execute the grant agreement.
Small Business Lease Grant
• Program description: The Small Business Lease Grant offers grant funding to cover a portion of lease payments for businesses and nonprofits leasing new or additional space.
• Incentive: Two grant awards of 20% of the annual lease payments on a minimum five-year lease term.
• General requirements:
◦ Be a NJ small business or nonprofit with a minimum five-year lease term or longer
◦ Meet the following additional lease criteria:
■ Occupy first floor (street-level) space in the Garden State
■ Space must have dimensions between 250 and 10,000 square feet
■ You must have signed the lease within 12 months prior to applying for this NJ grant
■ The lease is considered market rate based on commercial real estate information
◦ Provide a current tax clearance certificate prior to approval
◦ Provide certification from the landlord showing you are current on lease payments
◦ Be in good standing with NJDOL and NJDEP
◦ Not be in default of any NJ state assistance programs
◦ Pay wages of $15 per hour or 120% of the minimum wage rate, whichever is greater
◦ Commit to remaining in the leased facility for at least five years
• How to apply: You can complete and submit a Small Business Lease Grant application through the NJEDA website. Applicants who have applied for or received a license or a certification from the New Jersey Cannabis Regulatory Commission are not eligible for this grant.
Main Street Recovery Finance Program
• Program description: This umbrella program funds several narrower grants and loans that help NJ small business owners pay for capital improvements or operating expenses. It funds the two grants just mentioned plus the Main Street Acquisition Support Grant and Main Street Micro Business Loans.
• Incentives: Award sizes vary by type of grant, but a total of $227 million has been appropriated for the Main Street Recovery Finance Program as a whole.
• General requirements: Additional requirements may exist for certain grants, but in general, applicants must:
◦ Present capital improvement plans that accord with green building standards
◦ Be in good standing with NJDOL and NJDEP
◦ Provide a current tax clearance certificate prior to approval
◦ Commit to pay $15 per hour or 120% of the minimum wage rate, whichever is greater
• How to apply: Check the Funding page at Business.NJ.gov page to see a filterable list of grants that may fit your small business. More guidance is available if you create an account at the site.
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Atlantic City Revitalization Grant Program
• Program description: The Atlantic City Revitalization Grant Program, currently in its second phase, is awarding grants for capital projects that address and improve the communities and neighborhoods within Atlantic City.
• Incentive: Receive between $250,000 and $2.5M in grant funds to cover up to 50% of eligible capital project costs (including soft and hard construction costs).
• General requirements:
◦ Be a for-profit or nonprofit entity that is overseeing a real estate development project and coordinating the activities related to the project
◦ Project must be a renovation/restoration of a vacant (or partially vacant) building in need of repair
◦ The developer fee cannot exceed 8% of total project costs.
◦ All projects must be fully completed by the end of calendar year 2026 (as per U.S. Treasury deadlines)
• How to apply: Anyone interested in applying to the Atlantic City Revitalization Grant Program should email [email protected] to set up a call to discuss their application with NJEDA staff prior to applying. Note that all candidates must pay a $1,000 fee when filing the application.
Upskill: NJ Incumbent Worker Training Grant Program
• Program description: This NJ upskilling grant program helps defray the cost of training current employees to help increase the competitiveness of both the employee and employer.
• Incentive: Eligible NJ employers can receive up to 50% cost reimbursement (maximum $500,000) to train incumbent frontline employees in new occupational skills.
• General requirements:
◦ Be a NJ-based employer
◦ Have employees concentrated in one of the following nine strategic business sectors:
■ Advanced manufacturing
■ Clean energy
■ Film and digital media
■ Finance and professional services
■ Food and beverage (non-retail)
■ Life sciences
■ Offshore wind
■ Technology
■ Transportation and logistics
◦ Develop a job-training plan that would enhance the skills of existing employees to meet current and future business goals
◦ Commit to retain your trainees for at least six months after training is completed
◦ Provide a current tax clearance certificate
◦ Have a federal Employer Identification Number (EIN)
◦ Have a Unique Entity Identifier (UEI) number
• How to apply: Register with the NJ Department of Labor and Workforce Development’s online IGX system and notify NJDOL of your intent to apply for the Upskill: NJ Incumbent Worker Training Grant.
New Jersey Economic Development Authority (NJEDA) Entrepreneur Support
• Program description: This initiative guarantees investor loans that provide working capital to NJ startups. The guarantee covers 80% of the investment amount.
• Incentives: Each company can receive a maximum of $400,000 in loan guarantees, regardless of the number of investors.
• General requirements:
◦ Have at least 50% of employees located in NJ
◦ Have fewer than 225 employees in total
◦ Have corporate or business headquarters in New Jersey
◦ Be registered to do business in the state
◦ Have an up-to-date tax clearance certificate
◦ Be in good standing with the NJDOL
◦ Operate in one of the NJEDA targeted industries:
■ Advanced manufacturing
■ Aviation
■ Autonomous and/or zero-emissions vehicles
■ Clean energy
■ Film and digital media
■ Finance and professional services
■ Food and beverage (non-retail)
■ Hemp processing
■ Information technology
■ Life sciences
■ Transportation and logistics
• How to apply: Get the process started by sending an email to [email protected] for a consultation. On the NJEDA Entrepreneur Support Program web page, there’s a sample application that you can look over before applying.
How to Apply for NJ Small Business Grants
When applying for NJ business grants, the NJ Economic Development Authority’s website is a useful starting point. Its Financing and Incentives page lists a number of small business grants to consider, or you can use the site’s Eligibility Wizard to narrow down your choices.
A few grant descriptions on the NJEDA site have application links, but others require you to contact the NJEDA staff by phone or email to get the ball rolling.
Preparing Your Application
Once you’ve selected one or more grants to pursue, you may wish to take advantage of the free one-on-one consultations offered by New Jersey’s Small Business Development Council.
You can also explore other resources via your local public library. Some offer dedicated business information services and programs that may include training on how to apply for grants. If you’re physically located within the state of NJ, you can use Jerseyclicks to login without a library card.
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Documents and Requirements
Many of the NJEDA grants require that a business:
• Meet the SBA definition of a small business in that industry
• Provide current NJ tax clearance certificate
• Be in good standing with the NJ Department of Labor and the NJ Department of Environmental Protection
• Commit to paying employees $15 per hour or 120% of minimum wage, whichever is greater
There are other requirements set out for certain grants. Also, many NJEDA grants share a focus on businesses in particular sectors, as mentioned above.
Your business plan should clearly explain your business and what sets it apart from other competitors, plus details about what you would do with the grant money. Some small business grant applications may also require financial data and other relevant information for your business, so having that information organized and prepared can help streamline the process.
Unlike small business loans, grants don’t need to be repaid, so you may see less of a focus on credit history and cash flow statements.
Submission Deadlines and Tips
To make sure your grant application gets consideration, you must not miss the application deadline. Rolling grants do accept applications anytime — but only until that cycle’s funds are used up. Funders will often note on their websites when the funds have been fully depleted.
Having identified your deadline, it’s a good idea to read all of the qualification requirements carefully before applying. You want to make sure you meet the criteria before investing too much time in the application process.
More grant-writing tips:
• Research the grant. It can be worthwhile to research the funding agency or organization, the grant’s history, and past awardees. Using this information in your proposal as it applies will show you did your homework.
• Read samples. You can ask if the grant you’re applying for can provide samples of past winners’ proposals. These can give you a general idea of how yours might stand out.
• Follow instructions to the letter. Allow plenty of time to complete your proposal so you don’t miss key requirements. Make sure you include in your proposal everything that’s specified and present this information exactly as requested.
• Be specific. Include plenty of detail about your business plan and financials, statistics to back up your statement of the problem you’re addressing, and research on the audience you want to serve.
What Industries Do State of NJ Grants Support?
New Jersey offers grants supporting a variety of industries, including:
• Advanced manufacturing
• Clean energy
• Film and digital media
• Finance and professional services
• Food and beverage (non-retail)
• Life sciences
• Offshore wind
• Technology
• Transportation and logistics
• Retail trade (store and nonstore retailers)
NJ Resources for SMB Owners Looking for Funding
Here are some additional resources for small and medium-sized businesses looking for funding in the Garden State.
New Jersey Small Business Development Center (NJSBDC)
The NJSBDC is a statewide program that can provide NJ small business owners with the following services at no cost:
• Business training courses, seminars, webinars, and workshops
• Entrepreneur Certificate Program (ECP)
• Confidential business counseling
Ten SBDC regional offices are located throughout New Jersey, often on university campuses.
SBA District Office in NJ
The U.S. Small Business Administration (SBA) is a federal agency that provides resources and support to small business owners. The SBA’s New Jersey District Office in Newark serves all 21 counties in the Garden State.
Alternative Funding Sources for Small Businesses in NJ
If you don’t qualify for small business grants in NJ, you’re not necessarily out of funding options. Here are some other ways you may be able to get the capital you need to launch or grow your business in the Garden State.
NJ Microloan Lenders
Community-based nonprofits may offer microloans of anywhere from $500 to $50,000 to underserved small business owners in New Jersey, such as women and minorities. Interest rates tend to be low (or zero in some cases), and the qualification criteria are often less stringent compared with other business loans.
Microloans can provide an infusion of cash to get a startup off the ground or grow an existing business. However, you may need to provide a microlender with a personal guarantee and collateral in order to secure funding.
New Jersey SMB Term Loans from Private Lenders
Many banks, credit unions, and online lenders in NJ offer term loans to small businesses. With this type of loan, you receive a lump sum of money up front then repay it (plus interest) over a set period of time. You can use the funds for a variety of business-related purposes, including expansion, buying equipment, and working capital.
Online alternative lenders tend to have more flexible eligibility criteria than traditional banks, making them a good option for businesses that are just starting out. However, interest rates tend to be higher.
NJ SBA Loans
The Small Business Administration (SBA) offers a range of loan programs to help small businesses secure funding. These loans are partially guaranteed by the SBA, which reduces risk for lenders and increases accessibility for businesses.
The 7(a) loan program is one of the most popular SBA loans, since it provides funds that can be used for a variety of business needs; even startup business loans may be available to qualified applicants. SBA loans typically offer longer repayment terms and lower interest rates compared to conventional business loans.
Business Lines of Credit
A business line of credit provides businesses with flexible access to funds up to a predetermined limit. Unlike traditional loans, a line of credit allows businesses to borrow only what they need, when they need it. This flexibility can be helpful for managing cash flow, covering unexpected expenses, and taking advantage of growth opportunities.
Business lines of credit typically have variable interest rates and can be secured or unsecured, depending on the lender and the borrower’s creditworthiness.
Equipment Financing
Equipment loans and financing are specifically designed to help businesses acquire needed tools and machinery. The equipment itself serves as collateral for the loan, which can make it easier to get approved. This type of financing can be used to purchase heavy machinery, vehicles, technology, and other essential equipment. Terms for equipment financing vary based on the lender and the type of equipment, but generally feature fixed interest rates and repayment terms from three to ten years.
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The Takeaway
Small businesses qualify for various grants in New Jersey, with sources ranging from state and local governments to private enterprises. It may take some research to find grants that match your small business, but those are the ones you’ll have the best chance of winning.
If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.
FAQ
How do you get a small business grant in New Jersey?
To find a small business grant in New Jersey, you might start by contacting the state’s Economic Development Administration and your local Small Business Development Center. You typically need to submit a grant application as a qualified small business owner to be considered for a small business grant in New Jersey.
How hard is it to get a business loan in New Jersey?
To get a business loan from a bank, you typically need to have strong financials and have been in business for at least two years. Online alternative lenders tend to have more flexible qualification criteria for small business loans but generally charge higher interest rates.
What is the easiest SBA loan to get approved for?
There’s no guarantee you’ll get approved for any U.S. Small Business Administration (SBA) loan, but SBA microloans can be one of the easier types to get if you’re a new business owner. Startups may be eligible for SBA microloans of up to $50,000. If you’re looking for a streamlined application process, you may want to look into an SBA Express loan.
What grants are available for startups in New Jersey?
Several grant programs in New Jersey can help startups secure funding. The NJEDA (New Jersey Economic Development Authority) provides various grants, including the Small Business Improvement Grant and the Small Business Lease Grant, discussed above. Other state agencies offer targeted grants for business, such as the NJ Department of Environmental Protection’s Electric Vehicle Charging Grant Program. Also, in East Trenton and Atlantic City, locally sponsored small business grants are available.
Can nonprofit organizations qualify for small business grants in NJ?
Yes, they can, and there are many grants directed at small nonprofit organizations in NJ. Sites to follow for more details include:
• New Jersey Center for Nonprofits
• Community Foundation of New Jersey
• New Jersey Department of State
• The New Jersey section of GrantWatch
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