Small Business Improvement Grant

The Small Business Improvement Grant, administered by the New Jersey Economic Development Authority (NJEDA), is part of the Main Street Recovery Finance Program, developed under the New Jersey Economic Recovery Act. This program is designed to help revitalize small businesses and nonprofits across New Jersey by providing financial reimbursement for capital improvements and new equipment purchases. The initiative reflects NJEDA’s strategic effort to support long-term recovery and growth for small enterprises and to promote equitable investment across the state. The core purpose of the grant is to reimburse up to 50% of eligible total project costs, with a maximum award of $50,000. Eligible project costs include interior or exterior building improvements, as well as the purchase and installation of furniture, fixtures, and equipment (FFE). However, site acquisition, vehicles and heavy equipment not permanently located in the building, lease costs, soft costs, or any improvements already funded by another state grant are explicitly excluded. Importantly, applicants are allowed only one award per Employer Identification Number (EIN) for the entire life of the program, though project costs from multiple locations under the same EIN may be pooled together into a single submission. Eligibility for the grant includes both small businesses and nonprofit organizations that rent or own and operate from the facility being improved. Applicants must meet the SBA definition of a Small Business, based on employee count and NAICS code, and must ensure that their project costs are at least $5,000. Furthermore, the improvement project must have been completed on or after March 9, 2020, and within two years prior to the application date. All payments related to the project must also have been made within two years prior to the application. Applicants must provide a current tax clearance certificate, be in good standing with the Department of Labor and Department of Environmental Protection, and certify they are not in default of any EDA or State assistance. A wage commitment is also required, with applicants certifying they will pay employees the greater of $15/hour or 120% of the minimum wage rate. The program is structured with specific considerations for equity and accessibility. Notably, 40 percent of the funding is reserved for businesses and nonprofits located in Opportunity Zone-eligible census tracts. Applications are accepted on a rolling basis and will continue to be reviewed until all available funding is allocated. Home-based businesses are excluded from reimbursement eligibility for renovation or improvement projects, and landlords are also not eligible applicants. For projects costing over $50,000, compliance with Green Building Standards is required. Projects involving contractors with four or more employees may also be subject to Affirmative Action requirements. The application process requires payment of a $100 approval fee, which must be submitted before the grant agreement is executed. Applicants must also obtain landlord permission if the property is leased. Additionally, grantees must commit to remain at the improved location for a minimum of two years for grants up to $25,000 or a minimum of four years for grants exceeding that threshold. As per state law, any business or person affiliated with the New Jersey Cannabis Regulatory Commission through license or certification is prohibited from applying for or receiving this grant. NJEDA is developing separate financial products to support cannabis-related businesses, which will be announced on its official channels when available.