NJEDA Currently Accepting Applications for Main Street Support Grant

The Main Street Acquisition Support Grant product is a pilot product under the Main Street Recovery Fund that will offer a grant of up to $50,000 to reimburse an eligible NJ small business for closing costs related to a New Jersey commercial property that the business purchased to operate from.

As part of the process to acquire a commercial property, the small business would go through an underwriting and closing process and must close on a loan through a conventional lender, ensuring that the applicant meets the necessary debt service coverage ratio to qualify for the loan. For the purposes of this product, the Authority will consider a conventional lender to be any SBA lender, CDFI, MDI, bank, credit union, or any state, county, city administered loan with underwriting standards.

Once the closing on the commercial property is complete, the small business owner would then apply to NJEDA for the grant.

The Main Street Acquisition Support Grant is only available to small businesses after a real estate closing, and businesses are not eligible to apply in advance of a scheduled closing. This is to ensure that the business has adequately demonstrated to their lender the ability to repay their mortgage. However, despite the fact that this grant is a reimbursement of a portion of closing costs, it will still provide a liquidity infusion during the early stage of property ownership, which can be a financially stressful time, particularly if the property needs renovations or improvements.

The NJEDA will require that the property remains occupied by the grantee for a minimum of five years. If   the property is sold, fully leased, or the applicant no longer occupies their minimum square footage prior to the end of the five-year compliance period, then the grant recipient will be required to repay a pro-rated portion of the grant.  Repayment of the grant will be prorated based on the years of compliance, with 20% reductions for each full year the applicant is compliant with the terms of the grant.

To read more about eligibility and program details, click here for the NJEDA’s direct website.