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New pilot program expands Main Street Recovery suite to offer grants up to $50,000 to reimburse closing costs after purchase of a commercial business property

TRENTON, N.J. (February 20, 2024) – 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.

“In many instances, ownership of a commercial property can be a game changer for a small business owner and the Acquisition Grant is a powerful addition to New Jersey’s suite of Economic Recovery Act Main Street programs designed for small businesses,” said NJEDA Chief Executive Officer Tim Sullivan. “This program will help to achieve Governor Phil Murphy’s goal of supporting the thousands of New Jersey small businesses that are fortifying our communities and creating jobs that support New Jersey families.”

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.

“The Main Street Acquisition Grant can help to position small businesses more securely post-purchase by offsetting the costs associated with acquiring a permanent location,” said Christina Fuentes, NJEDA Vice President of Community and Business Development. “This new program extends the power of the NJEDA to help small businesses grow and thrive in their communities.”

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-street-acquisition-support-grant/.

Article Courtesy of the NJEDA