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NGExpert financial copywriter
Page written by Chris Godfrey. Last reviewed on September 4, 2024. Next review due October 1, 2025.
Small business grants can be an excellent way for New Jersey business owners to fund their big ambitions. Unlike commercial loans, grants are free money – they do not need to be repaid – and credit scores and many of the usual requirements of commercial lending typically do not apply.
Provided by government departments, corporations, foundations and other organizations, business grants can be used to support business opportunities, or initiatives in the arts, education, research and more. However, New Jersey entrepreneurs seeking a business grant should expect a lengthy application process, typically needing to meet strict guidelines, timelines and other qualifying criteria. Competition for this type of funding is often fierce and even if you qualify, the award sum may be small requiring you to seek additional finance.
Be aware that many business grants are tied to specific goals – entrepreneurial, educational, creative and motivational – and selection committees have full control of the award process and the sums distributed. To succeed, you will usually need a strong business plan that includes a feasibility study and an indication of how you intend to keep the venture going in the post-grant period.
Lastly, if you receive an award, the money may come to you all at once, but more usually, it will come in stages – either based on a set calendar or on your venture achieving fixed objectives. Unlike business loans, grants do not need to be repaid, making them a critical financial resource for ventures that cannot sustain a large financial burden.
If you’re seeking financing and your business is based in New Jersey, you’re in luck. The state government provides a whole host of grants and small business support programs to organizations of every shape and size. You can see the complete list of available funding here, but top options include:
Designed to enhance the skill sets of small business employees, the Return and Earn grant is suitable for employers with less than 100 workers. You must provide concentrated on-the-job training at your business location or use approved virtual training to earn skill badges or industry-recognized credentials for your staff. You can receive up to a 50% wage subsidy for six months per employee, with a cap of $10,000 per worker and a total cap of $40,000 across your entire workforce.
If you’re about to enter into a new market-rate commercial lease, or amend or extend your lease for at least a five years term on a minimum of 250 square feet of street-level space, you may qualify for a 20% reimbursement of the cost. But move fast. This is a first-come-first-served opportunity and only two awards of this type are available per year.
Open to small businesses and non-profits who are making improvements to their operating premises with a minimum expenditure of $5,000. To be eligible, you must rent, own or operate from the facility, and meet the US Small Business Administration’s definition of a small business. The grant may cover up to 50% of the improvement costs with a maximum award of $50,000. Once again, this is a first-come-first-served opportunity.
The New Jersey Asset Activation Planning Grant Program will provide grants of up to $50,000 directly to small businesses for pre-development planning that demonstrate viability to activate public assets. Proposed planning projects may include, but are not limited to:
• Conceptual Design
• Feasibility Study
• Land-use Planning
• Economic Analysis
• Market Analysis
• Legal Analysis
If you can’t find the funding you need with a NJ state government program, you may succeed with these other sources:
The WomensNet Amber Grants awards multiple grants per year to women wishing to start or grow their own business. $10,000 is offered monthly in three separate categories (total of $30,000 per month available). Participants who win a monthly prize also automatically qualify for the draw for an annual $25,000 award – with three prizes available, one for each award category.
You can apply for any of these grants by completing an online application and paying a $15 entrance fee.
MORE: Grants for women.
The Minority Business Development Agency (MBDA) provides a gateway to federal grants and business initiatives that specifically support minority entrepreneurs and are part of a total package valued at $500 billion per year. Additionally, MBDA helps organizations run Minority Business Centers across the US, providing services like business advice, help finding contracts, and financial support to minority-owned businesses.
MORE: Grants for minorities, Black women, disabled business owners and veterans.
US Grants is a one-stop portal to find and apply for government grants, stimulus packages and funding opportunities from local, State and federal government agencies. Available New Jersey small business grants include funding initiatives for organizations that operate in the fields of tech, health, research, sciences, agriculture, the environment, etc.
MORE: Grants for farmers.
New Jersey Grantwatch operates a directory of current grant opportunities, although not all may be specific to NJ-based organizations. Up to 2,000 grants may be available at any one time, with award values and qualifying criteria varying by category and mission goal.
Business loans may provide an alternative source of funding for your business or new venture. Look at options for specific business loan options in New Jersey.
Online lenders will typically be the best option for this type of financing, but you may pay higher interest rates and fees than you would with traditional banks. Credit checks are standard with most commercial financing, but depending on the type of loan you choose, you may not need to provide collateral:
You receive a single, lump-sum cash injection and then pay it back in regular instalments over a fixed period of up to 25 years. Collateral may be required.
A business line of credit is a business loan that functions like a high-value credit card. Borrowers can withdraw as much as they want when they want from a loan facility up to the limit of their borrowing. You only pay interest on the sums you withdraw, not the whole credit line. This can significantly reduce your borrowing costs. Collateral may be required.
Also known as account receivables financing. Borrow against the value of your unpaid invoices. The lender will usually provide up to 95% of the invoice value within a few days or even hours of the bill being raised. Your invoices act as security for the loan, no added collateral required.
Equipment loans use the asset you’re financing as security – no added collateral is required. You use the equipment as you pay for it and the lender maintains a lien on the machinery. Once you pay the loan back, the lender releases the lien, and you own the equipment outright.
Merchant cash advances are designed for businesses that accept customer payments by credit and debit card. You borrow against the value of your card sales. As your card sales increase, your borrowing limit goes up. Pay the loan back with a fixed percentage of your card sales on a daily, weekly or monthly basis. Your sales act as security for the loan, no added collateral is required.
Revenue-based financing functions like a merchant cash advance but with higher borrowing limits. Based on the size and regularity of their total revenues, (not just their credit card sales), businesses may receive a lump sum and pay it back over a short-term schedule, typically by small deductions from their daily sales. This type of loan can usually be secured quickly as qualification rules are less intensive and credit scores are not so critical. No added collateral is required.
Nonprofit and community-based lenders can provide SBA Microloans to business owners who may struggle to secure standard business financing. Available up to $50,000, SBA microloans also come with more relaxed qualifying rules and can usually be secured with FICO scores as low as 500, or even with no credit score at all. Be aware that these type of business loans often require a personal guarantee that makes you personally responsible for the debt.
NJEDA grants are awarded by the New Jersey Economic Development Authority. They provide funding for organizations based within the state and may be used for business expansion, facility improvements, employee training programs, job creation programs, export growth and more.
NJEDA grants are available for businesses and non-profits registered and operating within the state of New Jersey.
Yes, although it regularly partners with other government agencies, corporations, universities and charitable foundations to deliver the programs it supports.
Working with business finance experts can make all the difference when applying for grant funding. Contact Swoop to discuss your borrowing needs, get help with your application and compare top quality small business grants and business loans from a choice of providers. Give your business the chance it deserves. Register with Swoop today.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.
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