March 26, 2020
Dear Clients and Friends,
Like us, I’m sure you were pleased to see the $2 trillion federal aid package agreement unanimously passed by the Senate overnight. The package is expected to be voted on in the House on Friday and is expected to include small business grants which we hope will be applicable to our privately held, middle-market clients. We will keep you posted as additional details become available.
In addition to the above referenced federal program, for those of you whose businesses operate in New Jersey, details on other financial assistance have already begun to emerge. The New Jersey Economic Development Authority met today to consider a package of several funding programs. Those proposals include:
- A $5 million grant program with up to $5,000 for businesses of less than 10 employees.
- A loan program for loans of up to $100,000 with 0% interest for the first fe years. It resets for years 6 to 10 at a low interest-rate.
- EDA is working directly with banks as well as the Community Development Financial Institutions Fund (CDFI) to make loans easier.
- An entrepreneur-oriented emergency financing program.
It is expected that there will be a total of $40 million in direct intervention from the NJEDA which will leverage up to $75 million of outside monies. It is expected that applications will be available the week of March 30. These programs will be in addition to whatever becomes available from the federal government.
We at Sills Cummis are following the developments in new legislation carefully and intend to report back to you with our analysis as soon as the various packages are finalized, drafted and enacted into law. Until then, we prefer not to rely on speculation and media reports.
As always, please feel free to reach out to us for any matters of concern.