COVID-19 Guidance for Businesses
- Governor Phil Murphy issued Executive Order No. 107 - CLICK HERE FOR PDF which lays out new specific restrictions and rules, many of which apply to businesses.
- The NJEDA has created a webpage that directs business owners to various resources to assist in coping financially with the COVID-19 public health crisis. This site will be updated with any new programs or support that becomes available.
- CDC Guidance for Businesses - A guide for business and employers for dealing with the Coronavirus from the Centers for Disease Control and Prevention.
- Employee Benefits Info on One Page - Here is a chart on what benefits employees qualify for when their work status is impacted by coronavirus.
- New Jersey set up a website with information for businesses and the impact of coronavirus.
- The U.S. Small Business Administration set up a website with info on business guidance & loan resources related to coronavirus.
State of NJ Resources for Businesses:
- Business Emergency Assistance Grant Program: A $5 million grant program with up to $5,000 for businesses of less than 10 employees. Grants from $1,000 to $5,000; non-profits eligible; targeted companies such as retail, restaurants, entertainment and recreation companies and others. No application fees. No homebased businesses. Must have W-2 employees. Up to 10 employees.
- Business Emergency Assistance Loan Program: A loan program for loans of up to $100,000 with 0% interest for the first five years. It resets for years 6 to 10 at a low interest-rate, capped at 3%. Cover companies and non-profits, no homebased businesses. Personal guarantees required. Business must be in business one year. $5 million or less in annual revenue. Up to $100,000. Must pledge collateral, if available. Minimum credit score of 600. Interest rate will not be adjusted due to credit risk. No application fees initially. Principal payments deferred for 12-18 months.
- Programs to Mobilize Private Sector and Non-Profit Capital to Support Micro, Small and Medium-Sized Businesses During the COVID-19 Outbreak. EDA is working directly with banks as well as the Community Development Financial Institutions Fund (CDFI) to make loans easier.
- Community Development Finance Institution (CDFI) Emergency Assistance Grant Program: Up to $1.25 million to fund the program. Each grant up to $500,000 to CDFI institutions.
- Community Development Finance Institution (CDFI) Emergency Loan Loss Reserve Fund: Up to $10 million to fund the program. For CDFI loan recipients for working capital; up to $75,000 per loan; rates must be lower than 3.75 %; loans not longer than 7 years. Enhances each CDFI to provide loans to companies. NJEDA requests that each CDFI waive all fees.
- Small Business Emergency Assistance Guarantee Program: Up to $10 million. Micro, small and mid- sized businesses and non-profits. Loans up to $500,000. Guarantee capped at 50% of loan, not to exceed $100,000. NJEDA is in second position. Borrower minimum FICA score 600. No application fees.
- NJ Entrepreneur Support Program-COIVID-19: Up to $5 million. 80% loan guarantees for working capital, for companies with under $5 million in capital and under 100 employees. Up to $200,000 loan guarantee per company. Other investment restrictions.
- Credit Delegations to Support Businesses Impacted by COVID-19 Pandemic: Current loans in portfolio: Three month moratorium up to 12 months of good standing loans; ability to subordinate to additional debt, i.e. working capital; ability to waive late fees; additional provisions.
The NJEDA has created a webpage that directs business owners to various resources to assist in coping financially with the COVID-19 public health crisis. This site will be updated with any new programs or support that becomes available.
State of NJ COVID-19 Website:
The State of New Jersey has established a special website devoted to business concerns during the coronavirus emergency. The site, cv.business.nj.gov, will be updated as new information becomes available. We encourage you to communicate this with the appropriate individuals within your organization.
In addition, the New Jersey Business Action Center’s Helpline is now available from 8:00 am – 9:00 pm, seven days a week. Call 1-800- JERSEY-7 to address any concerns you or your employees have.
The USSBA has approved New Jersey for SBA lending programs for the current crisis and will be opening up their website for new applications!
Small Business Administration Resources:
Applicants may apply online, receive additional disaster assistance information, and download applications at: https://disasterloan.sba.gov/ela.
Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email email@example.com for more information on SBA disaster assistance.
Additional funding for business has been approved by the US Congress. Once we learn about the programs we will notify the Passaic County business community immediately.
New federal legislation and appropriations has opened up the possibility for small businesses to receive assistance for economic loss due to COVID-19. Details of eligibility and administration of this assistance from SBA are still being addressed by the USSBA. However, some information from the traditional SBA Economic Injury Disaster Loan (EIDL) program may still apply for COVID-19. As a courtesy, we have included some information from the existing EIDL program. Please refer to the SBA’s coronavirus website (https://www.sba.gov/page/guidance-businesses-employers-plan-respond-coronavirus-disease-2019-covid-19) for up-to-date information on SBA assistance.
The USSBA Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.
Bank Assistance Information:
Several banks have set-up contact lines to work with individuals impacted by COVID-19. If a bank is not listed below, reach out to them to find out what they are doing to assist those affected by COVID-19.
The Federal Deposit Insurance Corporation (FDIC) and the (National Credit Union Administration (NCUA) have also put out information for bankers and consumers.
Other banks assisting during COVID-19:
- Bank of America: https://about.bankofamerica.com/promo/assistance/latest-updates-from-bank-of-america-coronavirus
- Capitol One: https://www.capitalone.com/coronavirus/
- Chase: https://www.chase.com/digital/resources/coronavirus
- Citibank: https://online.citi.com/US/JRS/pands/detail.do?ID=covid19
- Discover: https://www.discover.com/coronavirus/
- PNC: https://www.pnc.com/en/customer-service/coronavirus-update.html
- US Bank: https://www.usbank.com/splash/covid-19.html
- Wells Fargo: https://newsroom.wf.com/press-release/corporate-social-responsibility/wells-fargo-donates-625-million-aidcoronavirus
- JPMorgan Chase Makes $50 Million Philanthropic Investment to Help Address Immediate and Long-Term Impacts of COVID-19
Note article below about other bank support for the business community:
Resources for Workers:
A new site has been set up by the Governor’s Office to help share information with the public regarding the current situation. The "Jobs Portal" shows opportunities for employment, and the data comes from the employers themselves. This can be a good resource for NJ LWD, One-stop’s, Workforce Development Board’s, College staff, businesses, or for anyone who may have been displaced to find a new opportunity.
State of New Jersey COVID-19 Jobs and Hiring Portal. The State of New Jersey has developed a centralized resource to match talent with opportunities in industries on the front lines of serving New Jersians during the outbreak
Please visit the link below for important information on Sick Leave benefits for your employees and business compensation.
Resources for Workers:
Paid Relief for Workers
Small and midsize employers can begin taking advantage of two new refundable payroll tax credits designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing COVID-19-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act).
The act gives businesses with fewer than 500 employees funds to provide employees with up to 80 hours of paid leave, either for the employee’s own health needs or to care for family members. There are two credits available:
Paid Sick Leave Credit
For an employee who is unable to work because of COVID-19 quarantine or self-quarantine or has COVID-19 symptoms and is seeking a medical diagnosis, eligible employers may receive a refundable sick leave credit for sick leave at the employee’s regular rate of pay, up to $511 per day and $5,110 in the aggregate, for a total of 10 days (up to 80 hours).
For an employee who is caring for someone with COVID-19, or is caring for a child because the child’s school or child care facility is closed, or the child care provider is unavailable due to COVID-19, eligible employers may claim a credit for two-thirds of the employee’s regular rate of pay, up to $200 per day and $2,000 in the aggregate, for up to 10 days (up to 80 hours). Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period.
Child Care Leave Credit
In addition to the sick leave credit, for an employee who is unable to work because of a need to care for a child whose school or child care facility is closed or whose child care provider is unavailable due to COVID-19, eligible employers may receive a refundable child care leave credit. This credit is equal to two-thirds of the employee’s regular pay, capped at $200 per day or $10,000 in the aggregate. Up to 10 weeks of qualifying leave can be counted towards the child care leave credit. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period.
Using the Credits
Under guidance that will be released next week, eligible employers who pay qualifying sick or child care leave will be able to retain an amount of the payroll taxes equal to the amount of qualifying sick and child care leave that they paid, rather than deposit them with the IRS.
The payroll taxes that are available for retention include withheld federal income taxes, the employee share of Social Security and Medicare taxes, and the employer share of Social Security and Medicare taxes with respect to all employees.
If there are not sufficient payroll taxes to cover the cost of paid qualified sick and child care leave, employers will be able file a request for an accelerated payment from the IRS. The IRS expects to process these requests in two weeks or less. The details of this new, expedited procedure will be announced next week.
Business Counseling and Resources:
Passaic County Division of Economic Development
William Paterson University Small Business Development Center
Kathleen Muldoon, Executive Director