Earlier today, October 13, 2020, Gov. Phil Murphy announced plans to distribute $112 Million of the state's CARES Act money via grants to small businesses and struggling families.
$70 million will be distributed by the state's Economic Development Authority Small Business Emergency Assistance Grant Program:
$35 million to the food service industry (places defined as "food services and drinking places");
$15 million to microbusinesses (those with five employees or fewer);
$20 million to replenish the EDA's existing Small Business Emergency Grant program;
Other grants include:
$10 million to add to the EDA's PPE program, which helps small business owners purchase PPE;
$15 million to support renters in the Department of Community Affairs Rental Assistance Program;
$5 million to food banks and other hunger relief efforts to help families battling food insecurity;
$12 million for the Department of Human Services' new Housing Assistance Program, which provide rental or mortgage assistance payments on behalf of eligible households that have suffered a financial hardship.
The source of funds is the $2.4 Billion the state received in money from the CARES Act.
By way of background, the Small Business Emergency Assistance Grant Program provides grants to small businesses impacted by the pandemic. To date, over 19,000 small businesses have benefited from the program. Phase 3 of the Grant Program expands eligibility to any business with 50 or fewer full-time equivalent employees and increases the amount of funding businesses can receive.
Duane Morris has created a COVID-19 Strategy Team to help organizations plan, respond to and address this fast-moving situation. Contact your Duane Morris attorney for more information. Prior Alerts on the topic are available on the team's webpage.
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