Daniel J. Munoz//December 10, 2020//
Over 7,500 New Jersey businesses were approved for more than $6.4 million in discounts through a state subsidy program meant to help employers deal with some of the costs for personal protective equipment during the pandemic.
Amid the soaring demand, the New Jersey Economic Development Authority said it is pushing the application deadline back a week to Dec. 17.
The state agency, which before the global pandemic provided economic incentives to entice businesses to move into New Jersey and set up shop there, or expand their Garden State footprint, has since pivoted much of its energy toward monetary help to keep these businesses afloat as they operate at greatly reduced capacity.
Under this state aid program, known as the “NJ Small and Micro Business PPE Access Program,” companies can get discounts of nearly 70% for PPE such as masks, gloves, dividers and floor markings for social distancing, hand sanitizer, gowns, face shields and disinfectant.
Businesses that stay open during the pandemic have to provide PPE to their workers at their own expense.
Employers can go on the program website to estimate how much of a discount they could receive based on the number of employees, the number of customers a week, how much of a stockpile they would need, and how many days of the week they stay open.
Getting the spread of COVID-19 under control, according to Gov. Phil Murphy, “means making sure your employees have access to the personal protective equipment that can keep them safe and your doors open.”
“This is now a headline due to the strong response, representing a clear need for businesses,” he said during a COVID-19 press conference yesterday in Trenton.
The PPE Access Program works by ensuring 10% discounts to employers buying PPE from one of three pre-selected vendors: Boxed, Office Depot, and Staples.
Another $20.4 million is available to provide discounts of 65% to businesses and nonprofits with up to 100 employees, for purchases at Staples or Office Depot. The discounts are capped at $800, or $1,000 for businesses in one of the state’s 715 communities that were submitted as potential federal Opportunity Zone.
Only 169 communities became Opportunity Zones, and businesses can get tax breaks for investing in projects and developments in those communities.
As of Nov. 23, the NJEDA awarded $142 million in COVID-19 relief grants to 31,447 employers across the state, according to agency data.
Under a low-interest, deferred payment loan program, which provides up to $100,000 in financing for businesses that make up to $5 million, the state awarded $10.4 million to 151 businesses as of Nov. 23.
That’s on top of another 280 loans worth $7 million, which the state awarded through partnering with six separate hyperlocal financial institutions and banks.
In April, the NJEDA rolled out a COVID-19 relief program called the Entrepreneur Support Program. Under this scheme, the agency is setting aside $5 million to provide loan guarantees – or collateral – for investments made as of March 9 when declared the state’s public health emergency.
As of Nov. 9, the program supported investments in at least 12 companies with over $1.8 million in guarantees.
A newly launched $2 million grant program, known as “Sustain and Serve NJ,” would effectively pay restaurants hit by the pandemic to prepare meals for thousands of low-income New Jerseyans.