MAIN STREET ACQUISITION SUPPORT GRANT

Open in new Tab MAIN STREET ACQUISITION SUPPORT GRANT APPLY HERE The NJEDA is currently accepting applications for this program. 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. AMOUNT Applicants may request a grant of up to $50,000 One grant per EIN for a maximum of one location (verified by the business’s employer identification number, or EIN) BENEFITS Reimbursement of closing costs to eligible NJ small businesses that have purchased a commercial property in which their business will operate from ELIGIBILITY For-profit or non-profit entities meeting the various requirements outlined in the “Eligibility” tab below Must meet the SBA definition of a small business based on their NAICS code Closing must have taken place after 10/1/2024 and grant application date must be no later than one year from date of closing PROGRAM DETAILS ELIGIBILITY AWARD SIZE FEES PROGRAM DETAILS The Main Street Acquisition Support Grant will be a grant product that will offer a reimbursement of closing costs up to $50,000 to eligible NJ small businesses that have purchased a commercial property in which their business will operate from.  This product will help support small business that have made a substantial investment and recently purchased a commercial building, the closing must occur after 10/1/2024, and the application for the grant must be made no later than one year from closing in order to be eligible. 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 union, or any 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. ELIGIBILITY Eligible Applicants Eligible applicants, which can be for-profit or non-profit entities, must also meet the following requirements: Must meet the SBA definition of a small business based on their NAICS code. Closing must have taken place after the application was open to the public and grant application date must be no later than one year from date of closing. Applicants must provide a current Tax Clearance Certificate from the NJ Division of Taxation prior to receiving NJEDA approval.