Gov. Phil Murphy signed three bills into law March 20 that lawmakers say will support small businesses.
The trio of measures signed Monday were part of a legislative package Speaker Craig Coughlin, D-19th District, introduced last year. The bills from that group signed into law Monday include:
A4748/S3195 – Enhances customer service experience with the NJ Business Action Center in the Department of State by collecting and disseminating customer assistance metrics.
A4749/S3204 – Requires the Business Action Center to collect and produce certain information to assist small businesses.
A4753/S3208 – Allows cure period for businesses to address and resolve certain violations. A business would have 60 calendar days to address and resolve the violation.
In a statement announcing the signing, Murphy said the new laws “will enable us to attract, retain and inspire small businesses to expand in a state that remains at the national forefront of economic vitality and innovation.”
“Helping New Jersey’s small businesses thrive and grow was one of the top priorities we identified at the outset of this session,” said Coughlin. “These bills are essential to our efforts.”
“This legislation will enable us to attract, retain and inspire small businesses to expand in a state that remains at the national forefront of economic vitality and innovation,” said Gov. Phil Murphy, shown here delivering the FY2024 Budget Address in Trenton on Feb. 28. – EDWIN J. TORRES/NJ GOVERNOR’S OFFICE
New Jersey Secretary of State Tahesha Way noted that the Business Action Center exists to help New Jersey companies navigate how state government rules and resources impact their operations.
“This legislation strengthens the Business Action Center and ensures that it is responsive to the needs of the constituents we serve,” Way said.
“As inflationary pressures and other economic uncertainties continue to linger for business owners in New Jersey, the last thing they need to worry about is a steep fine or punishment for a minor, often unintended violation,” said Sen. Vin Gopal, D-11th District, a sponsor of A4753/S3208. “This law will give them a little breathing room and reasonable extra time to come into full compliance.”
Those sentiments were echoed by the New Jersey Business & Industry Association. “The laws signed by Governor Murphy today are great steps to help bring flexibility and ease the challenges of running a business in the State of New Jersey,” said NJBIA President and CEO Michele Siekerka in a statement. “Cementing the strong work of the state Business Action Center by statute is a positive. And the signing of bill A4753 [S3208], in particular, will allow the state to be less heavy-handed when regulating small businesses which may have committed a minor rule violation.”
This week, the U.S. Small Business Administration announced the 2023 Small Business Persons of the Year from each state. In the Garden State, Lauren Borawski took home the honor for her Scotch Plains-based Child’s Play Challenge Courses.
The business, which was launched in 2015 by Borawski and her husband, Matthew, brings portable obstacle courses to clients’ backyards or event locations. Child’s Play is committed to keeping folks of all ages and abilities healthy, active and unplugged in a fun and motivational setting. Since its launch, the business has evolved into a multi-dimensional, holistic obstacle course that appeals to a broad client base, reaching more than 200,000 people in seven states.
Last year, it expanded and became a franchise, offering business opportunities throughout most of the country. Child’s Play employs roughly 20 gig-based personnel throughout the year.
Borawski
“Every day I consider myself so fortunate to be among the many hard-working and resilient small business owners in New Jersey. We are forged together by our dedication and our commitment to make a difference in the communities we serve, and I am very proud to represent the esteemed entrepreneurs in our state,” said Borawski.
“Our 2023 State Small Business Persons of the Year have given their all to achieve their American dream – to own and build a strong, resilient business; create jobs, increase competition and innovation and power America’s historic economic recovery,” said Administrator Isabella Casillas Guzman. “These incredible entrepreneurs show the vibrancy and grit of our nation’s small businesses. From Main Street to manufacturing hubs and tech centers, they are powering our economy. We hope their stories inspire and motivate the next generation of entrepreneurs.”
“The N.J. Small Business Administration is proud to name Lauren Borawski from Child’s Play Challenge Courses LLC as the 2023 NJ Small Business Person of the Year,” said SBA District Director John Blackstock.
Blackstock noted the role of the Small Business Development Center (SBDC) at Kean University in helping Child’s Play Challenge Courses as the business has grown and explored sales growth ideas, such as equipment rentals, leases, sales, and how to be current by changing out course components.
“I am so thankful to the SBA, the SBDC at Kean University and for the light that this honor will shine on my small family business,” said Borawski.
The winners will be recognized April 30 and May 1 during the National Small Business Week awards ceremony in Washington, D.C.
“Mostly, I am thankful for my husband, Matt. Without him by my side, I wouldn’t have the privilege of being a small businessperson and I share this recognition with him and the many contributions we make together toward changing lives by challenging limits with Child’s Play Challenge Courses,” said Borawski.
The business belongs to the Greater Westfield Area Chamber of Commerce and participates in the Women’s Franchising Network Committee in Philadelphia, New York and New Jersey. And, Lauren and Matt are members of the New Jersey Business & Industry Association.
The Senate Budget and Appropriations Committee advanced legislation March 6 that would create a state business assistance program for small, disadvantaged enterprises.
Sponsored by Democratic Sens. Troy Singleton, 7th District, and James Beach, 6th District, Senate Bill 855 would establish a program under the Department of Treasury to outline contract agency obtainment goals for economically and socially disadvantaged businesses. It would create a system to assist contracting agencies in identifying and utilizing qualified businesses in their contracting processes.
Under the legislation, an economically disadvantaged business would be defined as one where the owner can show that diminished capital and credit opportunities have impaired their ability to compete. They must also show a net worth that does not exceed a level that will be established by Treasury. To be considered socially disadvantaged, the owner must be part of a racial minority group or show a personal disadvantage due to color, ethnic, origin, gender, sexual orientation, gender identity or physical disability.
The bill was released from committee on a 7-4 vote.
Singleton says that as the pandemic recovery continues, we must maximize efforts to assist small businesses.
“This legislation would create a more streamlined and uniform process for supporting a diverse range of businesses,” said Singleton. “Additionally, the program would allow the state to establish set-aside goals for all disadvantaged businesses.”
“The program established under this bill has the potential to extend assistance to other groups of marginalized business owners that currently do not have specifically established programs, such as business owners with disabilities,” said Beach. “By supporting small businesses to the best of our ability, we are investing in the long-term economic growth of the state.”
It’s definitely a challenging time to start a small business, but that doesn’t mean you shouldn’t do it, financial experts say. Small- to mid-size operations can falter for various reasons, such as budgetary constraints, workforce issues, lack of market need, not researching the competition, incorrect business model, regulatory or legal hurdles, or bad timing.
The success of a business – or lack thereof – can also vary widely based on the state or industry. Nationally, about 1 in 5 small businesses never reach their one-year anniversary, while 49.7% shut by the five-year mark and 65.5% are gone in 10 years, a May 2022 analysis from LendingTree found.
In New Jersey, 20.4% of businesses fail within the first year. After five years, 50.3% of private sector businesses will falter and within 10 years, 69.4% have ceased operations.
Despite the outlook, there are steps that both new and existing entrepreneurs can take to boost their chances of surviving and thriving, according to panelists who participated in NJBIZ’s Feb. 28 panel on the various challenges small business owners in New Jersey are up against.
Moderated by NJBIZ Editor Jeff Kanige, the panel featured:
Kelly Brozyna, CEO and state director at the New Jersey Small Business Development Centers, the leading statewide organization in delivering no-cost advisory services and training to upward of 10,000 small- and mid-sized businesses a year
Daniel Leary, senior vice president of business banking at Oak Ridge-based Lakeland Bank, the fifth-largest financial institution in New Jersey
Chris Levy, president and chief executive officer at Pursuit Lending, a community-focused lender that serves businesses in New Jersey, New York, Pennsylvania and Connecticut
During the 90-minute roundtable discussion, panelists dove into topics such what to consider when starting a business, growth strategies, accessing capital, seeking out non-traditional funding sources, the importance of implementing cybersecurity measures, investing in technology that will add value to day-to-day operations and preparing for a possible recession.
Plan on planning
“Conventional wisdom will tell you that now is not such a great time to start your own business because of inflation, recession looming and interest rates,” said Leary. “But, you know you could say during the pandemic that it was a bad time to start a business and yet so many successful businesses were launched during that time.”
“But, it’s got to be disciplined, strategic and well thought out,” he said. “I think that’s really the key.”
Leary noted the pandemic’s “massive effect on businesses across the board,” saying that while some didn’t survive the extended public health crisis, many “pivoted successfully” to find new, revenue-generating opportunities.
Levy agreed, saying, “One of the things that is really important to us when we’re looking at financing and a small business startup that’s coming in and doesn’t have that operational history … is we’re looking for that business plan. We’re looking for a set of financial projections. It’s incredibly important that that’s on paper, it’s well thought out and that the numbers kind of back up the idea that’s in somebody’s head. So, taking the time and actually codifying what the plan is, I think is really helpful.”
Seeking help
In New Jersey, one of the best places to start that process is with NJSBDC, a public-private partnership that links up its consultants with those who are looking to launch – or grow – their ventures.
Brozyna said, “We sit with an individual and say ‘OK, what do you want to do? Do you need help with your research on doing a competitive analysis and a feasibility analysis? Is there a demand for this? Is this going to work? What is your client base? What does this look like? What is your demographics and psychographics of the audience that you’re trying to sell a product to or do a service for?
“We want to set you up for success before you take that leap of faith and put everything into it,” she said. “It can be very exciting and very rewarding, but it can also be very scary and painful if you don’t do it the right way.”
The ‘R’ word
Economic uncertainty continues to be top of mind for businesses in 2023, making it all the more important to be proactive.
“I think the Federal Reserve views inflation as the greatest concern and they view recession as the lesser of two evils and they’re going to continue to aggressively increase rates,” said Leary, who went on to say, “I’m already seeing businesses that are starting to adjust their model and make adjustments to staffing, assess vendor contracts and sharpen their pencils to make those changes in advance so they’re prepared.”
“If you wait until it’s affected your bottom line, you’ve waited too long,” said Leary, who urged business owners to take action now.
“If a recession doesn’t happen, then you’ll be in good shape,” he added. “If it does happen, you’ll be prepared … It’s much, much easier if you’re proactive in this scenario than trying to be reactive or guessing. Or trying to figure things out too late.”
Clockwise from top left: Moderated by Jeff Kanige, NJBIZ editor, the NJBIZ Small Business Challenges Panel Discussion on Feb. 28, 2023, featured Chris Levy, president and CEO, Pursuit Lending; Kelly Brozyna, CEO and state director, New Jersey Small Business Development Centers; and Daniel Leary, senior vice president of business banking, Lakeland Bank. – NJBIZ
As for consumer spending, panelists said they haven’t noticed a decline – yet.
Leary said, “But it would make sense if we do move toward a recession. Luxury items like vacations or just lifestyle-type investments are going to get pushed aside. I think we saw that in the beginning of the pandemic, because there was so much uncertainty. People weren’t taking vacations, they weren’t spending money, and the money started to pile up, and then, you know, like the floodgates open. There was a flurry of spending.
“Employment numbers are still very strong, so I think that’s why we’re seeing the consumer spending still going, but I think that will change as interest rates start to rise and people start to feel the pinch,” he went on.
Levy agreed, stressing the importance of being able to “maneuver, shift and pivot in these economic times.”
“I think it’s smart for business owners to understand and recognize that these things could be coming, and they have to be ready and prepared,” he said.
‘Wait-and-see’ continues
Financial institutions have noted some hesitancy from borrowers, particularly small business owners.
Levy said, “What we’re seeing right now, for the last three or four months, is people kind of taking a wait-and-see approach … because we just don’t know where things are headed. Are we going to go into a recession?”
“We also just need to take a step back and remember our history,” he said. “People think ‘oh, interest rates are so high right now,’ but if you look back over the last 30 years, you’ll see they’re pretty average. If you take an expanded view on it, we’ve had artificially, very, very low rates after the recession.”
“Then, during the pandemic, we slashed rates considerably, so they were at record lows,” Levy explained. “But overall, paying 8% or 9% on a line of credit isn’t that outrageous. And I think we need to reset expectations a little bit, and just say like, ‘Yes, this is higher than it may have been for the last few years, but those were extreme times, and now we’re almost getting back to normal.’”
Leary said he’s also detected reluctance.
“Some of the business owners that I speak with are reluctant to acquire a line of credit right now because rates are so high. And, it’s really the opposite – they should be getting the line of credit now, while their financials are strong and when they don’t need it.”
“They don’t have to draw on it right now. Maybe by the time they draw on it, the rates will be lower. But, at least they have it in place and that’s important,” he said.
Leary went on to caution, “The line of credit should not be used to sustain a business or prolong a business that’s going to go out in six months. It’s a short-term vehicle to fund growth or cash flow.”
Creative sources
However, there are non-bank alternatives to explore in the lending landscape, such as funding through the Community Development Financial Institutions Fund and the U.S. Small Business Administration.
At Pursuit Lending, which offers more than 15 types of business loan programs and provides financing of up to $5.5 million, the company works with both seasoned businesses owners and new entrepreneurs to help them grow.
Levy said, “One nice thing about CDFIs, and in fairness is a little bit for banks just with some of the regulations banks have, is that the CDFI often times gives grants or other ways that it can support business operations. So, they’re able to be more creative to somebody that may be a step below that traditional credit box because it is fulfilling that mission of lending to a minority- or woman-owned business.”
Click through to register to watch the full panel discussion!
While CDFIs will still review financials, Levy said their community-focused objectives widen the scope a bit.
“For example, somebody may have had a medical issue in the past and their credit scores dropped to 640. That may be something that doesn’t fit the criteria of a bank, but from our standpoint 640 is our minimum threshold. So just expanding it slightly, I think, is a way that businesses are able to get access where they may not from other financial institutions.”
Levy said, “It’s a perfect opportunity to take advantage of some of these government programs. I think historically people have shied away from SBA because they thought ‘I don’t need government assistance.’ I think we all saw during the pandemic with the Paycheck Protection Program just how robust SBA lending is in general.”
“There’s a lot of programs that are out there and a lot of it is about awareness,” he said. “And, I think, doing your due diligence, doing your homework and talking to a number of different people, whether it be a bank, whether it be a small business development center. The resources are out there, and especially, you know, in terms of what we do with SBA lending.”
Brozyna agreed, saying, “Not everybody is aware of the resources that are available. We like to think of the NJSBDC as a hub and spoke model. Let us be the hub and resources and we’ll connect you to the right one. We don’t claim to be the ‘end all, be all,’ but we’ll just make sure that we get you seamlessly to the right resource into what opportunities are out there.”
She went on to say, “Women, minority and veterans are a huge target for us to make sure that we help them … because they have been distressed, and they have been affected probably harder than some of the other industries and the communities that are affected. So, we really want to make sure that we are putting those resources that can be made available to them for success.”
Innovation
Amid continued workforce shortages across numerous industries, Brozyna believes technology will increasingly become “the small business’s best friend.”
“Innovation is one way for businesses to sort of side-step and continue to work around as they can’t get people to come back to the office or get people to come back in the service industry,” she explained, adding that even an upgrade, such as a brick-and-mortar store introducing an e-commerce presence, could easily lift business.
Levy said, “It may take a large initial investment – and not necessarily money, but time to set it up. But what that creates in the long run and those efficiencies are to gain.”
Leary agreed that it typically represents a fairly significant outlay, but that business owners should weigh it against other operational factors.
For instance, a business that is no longer renting office space should consider reallocating the money saved toward technology improvements, such as software platforms for automation and artificial intelligence, that “will make them more efficient and more profitable at the end of the day.”
When it comes to New Jersey’s fastest-growing industries, panelists said they’ve noted a lot of opportunities in green technology, warehouse development, fintech and hospitality.
Levy said, “Those are some sectors where we’re seeing a lot of new and innovative ideas that are coming out there and they’re an area where they are going to be longstanding businesses for our future.”
“So, I think as lenders, we’re trying to open up our eyes to see how do we want to help these businesses that may be something that traditional that we’ve heard of before – because it’s a new and evolving industry,” he explained. “We’re trying to gain knowledge and understanding of these industries and making sure that we’re putting together financial products that suit them.”
The New Jersey Economic Development Authority (NJEDA) launched a $1 million pilot program this week that will provide free e-commerce and digital marketing consulting services to small businesses across the Garden State.
NJEDA says the Small Business E-Commerce Support Program will help restaurants, retail shops and personal care businesses expand, build resilience and adapt to the growing e-commerce economy that has boomed since the pandemic.
The program, which was approved during the NJEDA board’s December meeting, will offer up to $11,400 in consulting services to eligible businesses to assist with the development of websites, e-commerce platforms and digital marketing plans. To be eligible, the restaurant, retail store, or personal care business must be in a commercial location with a physical storefront and meet the U.S. Small Business Administration’s (SBA) definition of a small business.
Services these small businesses can receive include:
The NJEDA signed contracts with seven New Jersey consulting firms to provide e-commerce and digital marketing services to small businesses for a two-year term with two, one-year extension options.
Those firms are: Beyond Media Global (Paramus); eGrove Systems Corp. (East Brunswick); Masterpiece Advertising (Atlantic City); New Frontier (Millburn); Positive Solutions (Robbinsville); Tara Dowdell Group (Jersey City); and 360 Marketing and PR (Camden).
NJEDA Chief Executive Officer Tim Sullivan said that as consumers become more reliant on online services, small businesses along Main Street need resources to help them modernize, expand their customer base and to stay competitive.
Sullivan
“Under Gov. [Phil] Murphy’s leadership, New Jersey invested hundreds of millions of dollars to help small businesses keep their doors open during the pandemic,” said Sullivan. “The Small Business E-Commerce Support Program, and others in the pipeline, will continue to help bolster the resilience of small businesses and preserve our Main Streets as the bedrock of New Jersey’s economy.”
The effort is the fifth pilot program the NJEDA has approved under the Main Street Recovery Finance Program.
“When we invest in the growth of small businesses, we invest in the growth of entire communities – paving the way for economic empowerment,” said NJEDA Chief Community Development Officer Tai Cooper. “With a concentration on women, minority, and veteran-owned small businesses in Opportunity Zones, this program will help our most diverse businesses grow, thrive, and succeed.”
As part of NJBIZ’s latest virtual discussion, financial experts spoke on the various challenges that small business owners in New Jersey are up against.
Moderated by NJBIZ Editor Jeffrey Kanige, the Feb. 28 panel featured:
Kelly Brozyna, CEO and state director at the New Jersey Small Business Development Centers, the leading statewide organization in delivering no-cost advisory services and training to upward of 10,000 small- and mid-sized businesses a year
Daniel Leary, senior vice president of business banking at Oak Ridge-based Lakeland Bank, the fifth-largest financial institution in New Jersey
Chris Levy, president and chief executive officer at Pursuit Lending, a community-focused lender that serves businesses in New Jersey, New York, Pennsylvania and Connecticut
During the 90-minute roundtable discussion, panelists dove into topics such as what to consider when starting a business, growth strategies, accessing capital, seeking out non-traditional funding sources, the importance of implementing cybersecurity measures, investing in technology that will add value to day-to-day operations and preparing for a possible recession.
Small businesses can falter for various reasons, such as financial constraints, workforce issues, lack of market need, not researching the competition, incorrect business model, regulatory or legal hurdles, or bad timing.
Additionally, the success – or lack thereof can vary widely based on the state or industry, a May 2022 analysis from LendingTree found.
In New Jersey, 20.4% of businesses fail within the first year. After five years, 50.3% of private sector businesses will falter and within 10 years, 69.4% have ceased operations. Nationally, about 1 in 5 small businesses never reach their one-year anniversary, while 49.7% shut by the five-year mark and 65.5% are gone in 10 years.
Despite the failure rate, there are steps that both new and existing entrepreneurs can take to boost their chances of surviving and thriving, panelists said.
Clockwise from top left: Moderated by Jeff Kanige, NJBIZ editor, the NJBIZ Small Business Challenges Panel Discussion on Feb. 28, 2023, featured Chris Levy, president and CEO, Pursuit Lending; Kelly Brozyna, CEO and state director, New Jersey Small Business Development Centers; and Daniel Leary, senior vice president of business banking, Lakeland Bank. – NJBIZ
Taking the leap
“Conventional wisdom will tell you that now is not such a great time to start your own business because of inflation, recession looming and interest rates,” said Leary. “But, you know you could say during the pandemic that it was a bad time to start a business and yet so many successful businesses were launched during that time.”
“But, it’s got to be disciplined, strategic and well thought out,” he said. “I think that’s really the key.”
At Pursuit Lending, which offers more than 15 types of business loan programs and provides financing for up to $5.5 million, the company works with both seasoned businesses owners and new entrepreneurs to help them grow.
Levy agreed with Leary, saying, “One of the things that is really important to us when we’re looking at financing and a small business startup that’s coming in and doesn’t have that operational history … is we’re looking for that business plan. We’re looking for a set of financial projections. It’s incredibly important that that’s on paper, it’s well thought out and that the numbers kind of back up the idea that’s in somebody’s head. So, taking the time and actually codifying what the plan is, I think is really helpful.”
In New Jersey, one of the best places to start that process is with NJSBDC, a public-private partnership that links up its consultants with those who are looking to launch – or grow – their ventures.
Click through to register to watch the full panel discussion!
Brozyna said, “We sit with an individual and say ‘OK, what do you want to do? Do you need help with your research on doing a competitive analysis and a feasibility analysis? Is there a demand for this? Is this going to work? What is your client base? What does this look like? What is your demographics and psychographics of the audience that you’re trying to sell a product to or do a service for?”
From there, the NJSBDC’s statewide capital team matches business owners with the best potential resources for funding.
“We want to set you up for success before you take that leap of faith and put everything into it,” she said. “… It can be very exciting and very rewarding, but it can also be very scary and painful if you don’t do it the right way.”
‘A hub and spoke model’
Financial institutions have noted some hesitancy about borrowing, mainly because business owners want to avoid drawing on lines of credit when interest rates are high. However, there are non-bank alternatives to explore, such as funding through the U.S. Small Business Administration.
Levy said, “It’s a perfect opportunity to take advantage of some of these government programs. I think historically people have shied away from SBA because they thought ‘I don’t need government assistance.’ I think we all saw during the pandemic with the Paycheck Protection Program just how robust SBA lending is in general.”
Brozyna said, “Not everybody is aware of the resources that are available. We like to think of the NJSBDC as a hub and spoke model. Let us be the hub and resources and we’ll connect you to the right one. We don’t claim to be the ‘end all, be all,’ but we’ll just make sure that we get you seamlessly to the right resource into what opportunities are out there.”
She went on to say, “Women, minority and veterans are a huge target for us to make sure that we help them … because they have been distressed, and they have been affected probably harder than some of the other industries and the communities that are affected. So, we really want to make sure that we are putting those resources that can be made available to them for success.”
What’s new, what’s next
When it comes to New Jersey’s fastest-growing industries, panelists said they’re noting a lot of opportunities in green technology, real estate, fintech and hospitality.
Levy said, “Those are some sectors where we’re seeing a lot of new and innovative ideas that are coming out there and they’re an area where they’re gonna be long standing businesses for our future. So I think, as lenders we’re trying to open up our eyes to see how do we help these businesses that may be something not traditional that we’ve never heard of before, because it’s a new and evolving industry.”
“We’re trying to gain knowledge and understanding of these industries, and making sure that we’re putting together financial products that suit them. Whether that’s a line of credit or whether that’s investments in equipment and R&D,” he said.
“I think the Federal Reserve views inflation as the greatest concern and they view recession as the lesser of two evils and they’re going to continue to aggressively increase rates,” said Leary, who went on to say, “I’m already seeing businesses that are starting to adjust their model and make adjustments to staffing, assess vendor contracts and sharpen their pencils to make those changes in advance so they’re prepared.”
“If you wait until it’s affected your bottom line, you’ve waited too long,” said Leary, who urged business owners to take action now.
“If a recession doesn’t happen, then you’ll be in good shape,” he added. “If it does happen, you’ll be prepared.”
A full recap of the panel will be available in the March 6 issue of NJBIZ.
The New Jersey Commission on Science, Innovation and Technology (CSIT) last week announced the most recent grants through its Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Direct Financial Assistance Program.
The fourth funding round included $525,000 awarded to 17 startups. The program supports businesses that receive federal funding through research and development (R&D) grants programs as they work toward commercialization. Since 2020, it has awarded a total of $2.425 million in matching grants to 80 startups.
Thirteen of the 17 awardees are currently in Phase 1 of, or have received a Fast-Track or Phase II designation, from the federal SBIR/STTR program. They will each receive up to $25,000 in grants through the state program, which are intended to help increase intensity of research, strengthen commercialization plans, cover operational expenses, and become more competitive for Phase II funding.
The awardees that received this funding range from clean technology startups to companies focused in areas such as aerospace, gene therapy, drug discovery, and sustainability and nutrient content of packaged foods.
They include: Atux Iskay Group LLC (Princeton); AuresTech Inc. (Bridgewater); Dina Pharma Inc. (Peapack-Gladstone); Enalare Therapeutics (Princeton); Farm to Flame Energy Inc. (West Orange); Innovative AI Technologies LLC (Newark); Mallika Ashwin Maya Corp. (Bridgewater); Misram LLC (Holmdel); Neutroelectric LLC (Camden); Paragon Flavor Inc. (Princeton); Regenosine Inc. (Princeton); ShockTech (Mahwah); and Singlet02 Therapeutics LLC (New Providence Borough).
The other four awardees have each completed Phase 1 or more of the federal SBIR/STTR programs and have applied for Phase II federal funding. They will each receive bridge grants of up to $50,000 through CSIT’s Bridge Funding program.
Those awardees include: Bezwada Biomedical LLC (Hillsborough); Impact Business Information Solutions Inc. (Princeton); Optimeos Life Sciences Inc. (Princeton); and Venarum Medical LLC (Eatontown).
CSIT says that 16 of the 17 awardees had fewer than 10 employees at the time of application, and 12 had fewer than five employees.
Hart
“This grant program is specifically designed to support the smallest of startups competing in the global marketplace,” said CSIT Chair Debbie Hart. “By helping grantees maximize their federal funds, we are enabling them to scale their operations and focus on commercializing their products. This, in turn, will lead to grantees expanding their presence and creating good paying jobs in the Garden State.”
Sheft
Judith Sheft, CSIT executive director, said that startups here in the Garden State are creating cutting-edge technologies that will have both far-reaching and long-lasting effects on the worldwide stage.
“And we are proud to connect them with access to the capital they need to succeed,” said Sheft. “Our state’s blend of highly talented workforce and proximity to both a high concentration of scientists and research universities make us an attractive location for startups looking to scale their operations. The NJ SBIR/STTR Direct Financial Assistance Program is a perfect complement to those assets.”
A three-bill package of legislation aimed at supporting small businesses cleared Senate committees at the State House in Trenton Jan. 26.
The measures – Senate Bill 3400, Senate Bill 3204 and Senate Bill 3208 – were each cleared from committee by unanimous 5-0 votes. The first two measures cleared the Senate Economic Growth Committee while the latter was released from the Senate Commerce Committee.
Promoting partnerships
The first bill, S3400, sponsored by Sen. Andrew Zwicker, D-16th District, and Senate Majority Leader Teresa Ruiz, D-29th District, would establish a mentorship program to help match new business startups with those who have experience in sustaining and growing a small business. Bill sponsors say it would encourage mentors to share their experiences transitioning to a new form of commerce and offer advice on how to avoid common pitfalls.
“New Jersey’s economy, like the global economy, is evolving daily, meaning that change can come rapidly for both new and established businesses,” said Zwicker. “This program is designed to promote partnerships of commonality, a sharing of ideas and best practices that would help all our small businesses reach their greatest potential in an ever-changing economic landscape.”
Ruiz said that small businesses are the backbone of our economy here in the Garden State.
“By bolstering existing mentoring programs, through both new and proven strategies, our small business community will continue to grow and remain a vital part of the state’s economy,” said Ruiz.
Zwicker says that the manual would provide information and guidance on establishing, maintaining and expanding a small business here.
“Starting a small business and making a go of it, especially in that first year can be daunting,” said Zwicker. “Fortunately, there is plenty of useful information available to help these businesses navigate those challenges and grow into profitable enterprises.”
Extra time
The final bill, S3208, sponsored by Zwicker and Sen. Vin Gopal, D-11th District, would allow a “cure period” for businesses to address and resolve certain violations. The legislation provides state agencies the discretion to suspend enforcement of fines or civil penalties against businesses for certain first-time violations that do not significantly impact public safety or welfare.
“As recession-like uncertainty continues to haunt so many businesses in post-pandemic New Jersey, this legislation would give them breathing room to find remedy for violations not considered major but could represent a major hurdle for those trying to thrive in these still stressful times,” said Gopal.
The Fair Lawn Economic Development Corp. announced its restructuring as Fair Lawn Main Street Inc. to better address the needs of local businesses.
In a Jan. 16 press release, the nonprofit entity said it will be charged with facilitating and coordinating the strengthening of Fair Lawn’s economic and commercial vitality, as well as managing the two special improvement districts within the Bergen County municipality.
Friedberg Rottenstrich
“This new structure will enable more resources, volunteer energies, and beautification outcomes to flow into the Broadway and River Road commercial districts,” said Fair Lawn Borough Councilmember Gail Friedberg Rottenstrich. “In the past year, the Fair Lawn Economic Development Corp. yielded tremendous positive results through its state designated Main Street NJ Program. The creation of Fair Lawn Main Street Inc. allows Fair Lawn’s local needs, goals, and objectives to be better addressed.”
Earlier this month, a nine-member board of directors, which includes Friedberg Rottenstrich as a borough council representative, was elected to lead the organization:
Abigail Polizois – chairperson
Allen Weitzman – vice chairperson/secretary
Frank Hall – Treasurer
Stu Herrmann – chamber of commerce representative
Dennis Cummins – Broadway stakeholder
Elyss Frenkel – Broadway stakeholder
Jamie Geduldick – River Road stakeholder
Alberto Fernandez – river Road stakeholder
The group also announced the establishment of a liaison relationship with the New Jersey Business Action Center, which provides specialized and professional services to small businesses, including mentoring, technical training, regulatory assistance, site selection, and more.
“We are honored to have a liaison relationship with the New Jersey Business Action Center,” said Polizois. “This partnership will allow Fair Lawn Main Street Inc. to nurture the Borough’s economic prowess, grow jobs, and help expand Fair Lawn business opportunities.”
Garden State small businesses got some welcome holiday news this week as the state set is receive $255 million in federal funds through the State Small Business Credit Initiative, a Treasury Department program designed to spur lending and investment of private capital.
The funding, allocated through the New Jersey Economic Development Authority, which will create and develop six programs to provide financial and technical assistance to small and microbusinesses, and early-stage, innovation-focused companies. At least $27.5 million will be allocated to benefit businesses owned by Socially and Economically Disadvantaged Individuals.
“The infusion of federal funding announced today presents our state with a tremendous opportunity to develop innovative programs to propel our economy forward,” said Gov. Phil Murphy, shown here in an archive photo. – NJ GOVERNOR’S OFFICE
In a statement, Gov. Phil Murphy said the pandemic simultaneously showed the resilience and tenacity of the Garden State small business community, as well as the importance of getting capital into the hands of small business owners and entrepreneurs.
“The infusion of federal funding announced today presents our state with a tremendous opportunity to develop innovative programs to propel our economy forward,” Murphy said.
“Through a combination of loans and strategic investments, each of the SSBCI-funded programs being developed will help position New Jersey businesses for long-term growth,” said Tim Sullivan, NJEDA chief executive officer.
The programs the NJEDA plans to create and launch include:
An $80 million Clean Energy Business Financing Program that will offer loan participations or companion loans to eligible small businesses seeking to finance qualifying clean energy projects that create jobs in New Jersey.
A $60 million Life Science Investment program that will invest funds into one or more venture funds to support early-stage New Jersey life science businesses.
A $50 million Blended Capital Fund program that will co-invest SSBCI funds in an investment vehicle that supports the purchase of eligible loans from Community Development Financial Institutions serving New Jersey.
A $25 million Recovery Loan Loss Reserve that will provide CDFIs and Minority Depository Institutions the ability to leverage their resources to support more small businesses.
A $20 million SEDI Seed Fund that will invest funds to support seed and early-stage startups with SEDI owners.
A $20 million Angel Match Program that will match direct investment in early-stage, product-based technology companies on a one-to-one basis.
The NJEDA says that additional details about the programs will be announced in the coming weeks.
With the annual SantaCon bar crawl set to return to Hoboken Dec. 17, the Hoboken Business Alliance (HBA) is offering up a more family-friendly option for holiday fun the following day.
Along with an outdoor market featuring more than 125 artisan vendors from across the region as well as two dozen local businesses, the Hoboken Holiday Extravaganza under the 14th Street viaduct will include games, crafts, music and some seasonal surprises.
Planned activities include:
Fire truck fun and meet “Survivor” Mike Turner
Freshly toasted s’mores with Hoboken Volunteer Ambulance Corps
Holiday scene photo booth with Joe Epstein Photography
Make a snowflake by Playday Hoboken
Make SNOW with Urban Arts
Cookie decorating with Tony Soares at Prime Realty
Book Nook by Hoboken Public Library
Music circle with Dave Lambert Music Together
Meditative coloring with “My Hoboken” by SageMap
Holiday fun with Mission 50
“Kindness Rocks” rock art with Kearny Bank
Coloring with Hoboken Community Center
Play dreidel with Hoboken Dental Associates
Food from a number of well-known Hoboken establishments will also be available for purchase, including dishes from San Giuseppe, Tunkas Food Truck, The Madison Chili Bar, Bang Cookies, Pickle Licious, Haley’s Donut, BWE Café, Gringos Tacos Truck and Java Coffee.
Yes, the SantaCon bar crawl is taking place Dec. 17 in Hoboken, but there will be other activities for families this weekend, as well. PEXELS
The Holiday Extravaganza, which is presented in partnership with The Main Street Pops, will run from 11 a.m. to 4 p.m.
Extending the viaduct, several local shops are also getting into the spirit, according to the HBA.
Wine Dads will offer a special hot mulled wine tasting, while Hudson Table is serving up hot chocolate and rainbow marshmallows. Families can also stop into Hudson Table to make their own gingerbread house or have their dog’s photo taken with The Grinch at Camp Bow Wow.
The holiday market isn’t the only reason to visit Hoboken, Roxanne Earley, executive director of the HBA said, adding that Santa Claus will also travel through the city on a float from 11 a.m. until 3 p.m.
“Cookie decorating, fresh s’mores, and even a chance to meet one of the stars of Survivor, on top of some great shopping, music, and more will pack your day in the Mile Square City,” Earley said. “But that’s only a fraction of what we have to offer.”
Ahead of the holiday season, the HBA launched a new, branded seasonal shop local campaign as a way to drive foot traffic into retail stores and encourage locals to shop at small businesses rather than online or at big box retailers. As part of the initiative, the organization debuted a Holiday Passport program, which is a wallet-sized card that features a map of small, local and independent retailers where customers can focus their holiday shopping.
While Santacon has drawn mixed reactions from residents, businesses and local officials, it does give the city’s bars a much-needed boost heading into the typically quieter winter months. With more than 140 liquor licenses in a square mile radius, the city’s hospitality industry is a key part of the local economy.
This year, the holiday-themed pub crawl kicks off at 10 a.m. and has more than a dozen participating bars in Hoboken, according to event organizers.
In advance of SantaCon, NJ Transit announced it would ban all beverages on its buses and trains this Saturday, whether alcoholic or not, open or closed.
Goldman Sachs 10,000 Small Businesses Voices is out with a new Small Business Pulse Poll that finds more than half of small business owners have not met profitability expectations, even as revenues and sales for larger businesses hit record highs.
The respondents feel they are getting squeezed this holiday season, according to results released Dec 14., with inflation serving as the Grinch that stole their profits.
“Small businesses are the backbone of America. Yet, as we enter this holiday season, we are finding it harder than ever to succeed,” said Janice Jucker, president and co-owner of Three Brothers Bakery and a member of the 10,000 Small Businesses Voices National Leadership Council. “As our economy teeters on the brink of a recession, it’s more important than ever that Washington provide small businesses with the resources we need not just to get by, but to get ahead.”
In early December, the poll surveyed more than 300 small business owners in the consumer product retail/wholesale, food and beverage retail/wholesale, and hospitality/restaurant sectors to capture their holiday season sentiments.
Some key findings include:
Compared with last year, 52% of small business owners say profitability has not met expectations, even while 79% have increased prices versus last year.
40% said that demand has decreased compared with last year, with 33% saying it has stayed the same.
84% believe bigger retailers have a competitive advantage this holiday season due to their ability to better withstand inflationary pressures and offer lower prices.
Inventory planning remains a challenge for small businesses with 27% reporting that they currently have excess inventory for current demand.
“It’s critical that Washington meet their needs, and we are committed to ensuring that the voices of small business owners are heard at the highest levels of our government,” said Wall.
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