New Jersey officials are hoping to open up applications in the next week for $10 million to help businesses slammed by Hurricane Ida and another $500,000 that can also be tapped into by the more limited number of businesses affected by Hurricane Henri in August.
All told, the $10.5 million in state relief is the first in a massive wave for businesses as they rebound from Ida, which dumped record levels of rain across the Garden State last week.
Tim Sullivan, head of the New Jersey Economic Development Authority, which is overseeing the funds, said during a remotely-held board meeting on Sept. 8 that Ida was “the last thing small businesses need as they were beginning to stand up from the devastating gut punch that was – that is – COVID.”
The grants will clock in at between $1,000 and $5,000 for businesses with up to 50 employees that can show they’ve suffered losses from Ida. That can include destruction to equipment and a brick and mortar site, or loss of business as a result of either hurricane. Funds specifically go to the businesses in the form of “August rent/mortgage reimbursement,” which the employer can use for whatever Ida or Henri expenses they deem necessary.
NJEDA officials said applications would be open for a week and expect funds to go out the door this month. Fred Dumont, a board member, entertained the possibility of an “overabundance of applications.”
Last year, pandemic-relief grants being offered by the NJEDA were quickly oversubscribed, and the first half an hour of applications sometimes saw thousands more bids from employers than there were funds available.
Tim Sullivan, head of the New Jersey Economic Development Authority, at tour of flood-damaged downtown Millburn following Hurricane Ida in September 2021. – EDWIN J. TORRES/NJ GOVERNOR’S OFFICE
“Hopefully we’ll be able to fund everyone who’s eligible,” Sullivan said. “We’re going to see how many applications we get.”
To that end, in the near term, the federal Small Business Administration is offering low-interest loans of up to $2 million for businesses and nonprofits, which owners can use to pay for storm-damaged property and machinery, equipment, inventory, and any other physical damage suffered from the storm.
The loans are only available to the six counties affected by President Joe Biden’s emergency declaration – Bergen, Gloucester, Hunterdon, Middlesex, Passaic and Somerset.
State and local officials, and several of New Jersey’s congressional Democrats, have condemned the decision to only extend the Federal Emergency Management Agency’s decision to just those six counties.
Places like Essex, Hudson and Union counties were left out of the FEMA declaration, despite extensive storm damage. Murphy and local officials toured several downtowns across Essex and Union counties that were flooded by Ida.
For businesses in counties surrounding the six FEMA disaster counties, they could apply for the COVID-era SBA Economic Injury Disaster Loans.
Editor’s note: A previous version of this story indicated that $15 million in total would be available for relief for New Jersey businesses: $10 million for those impacted by Hurricane Ida and $5 million for those impacted by Hurricane Henri. That was incorrect, there is a total $10.5 million available: $10 million for Ida-impacted businesses and $500,000 for Henri-impacted businesses. The story was updated at 3:21 p.m. EST on Sept. 8, 2021.
