The Board of the New Jersey Economic Development Authority (NJEDA) has approved the creation of a pilot program that will help boost small business owners’ liquidity following the purchase of a commercial property.
Approved at the NJEDA’s Board meeting last week, the Main Street Acquisition Support Grant will reimburse applicants for a portion of closing costs after they have purchased an existing New Jersey commercial property from which their small business will operate.
The closing must have taken place after the application was open to the public and the grant application date must be no later than one year from date of closing.
As part of the Main Street Recovery Fund, created under the Economic Recovery Act of 2020 (ERA), the program will be funded initially with $5 million to provide grants of up to $50,000, limited to one grant per business per Employer Identification Number, and for one eligible location. Based on demand, the program may be expanded to $10 million.
Grants will be based off the closing documentation, such as HUD-1 statements, closing disclosures, or settlement statements (may be in the name of the applicant or real estate holding company associated with the applicant).
The small business must be the applicant for this grant and occupy at least 1,000 square feet of the building purchased. All loans must have been closed on through an arm’s length commercial transaction with a conventional lender. For more information on the Main Street Acquisition Support Grant visit: https://www.njeda.gov/main-