Grants for NJ Small Businesses Acquiring Commercial Properties
By Barry Halpern, Partner, Tax & Business Services
The New Jersey Economic Development Authority (NJEDA) has launched the Main Street Acquisition Support Grant Program, a pilot product under the Main Street Recovery Fund, to support small businesses in acquiring commercial properties and fostering economic development and job creation in New Jersey.
Program Overview
The Main Street Acquisition Support Grant Program reimburses closing costs for eligible businesses acquiring commercial properties in New Jersey.
Key Benefits
- Financial Support: Grants up to $50,000 to reimburse closing costs to small businesses that have purchased a New Jersey commercial property from which their business will operate.
Eligibility Criteria
To be eligible for the Main Street Acquisition Support Grant, applicants must meet the following criteria, among other requirements:
- Business Type: For-profit and non-profit entities are eligible. Must meet the SBA definition of a small business based on their NAICS code.
- Property Location: The property must be in New Jersey.
- Remain for five years: Business must agree to run its commercial business from the NJ property for five years.
- Project Scope:
- New building purchases only and cannot be a refinance of an existing loan.
- Business must occupy at least 1,000 square feet of total usable square footage of the building.
- 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 closing.
- Proof of Eligible Cost: Provide a HUD-1 statement to identify all closing costs at the time of closing. If the applicant does not have a HUD-1, it must provide Closing Disclosures or Settlement Statements to support the closing costs paid minus the purchase price of the building, business, or any payoffs.
Applications opened on October 1, 2024. They will be available for three years or until the total funding is exhausted, whichever occurs first unless NJEDA closes the application period earlier to change or amend this product prior to launching a new phase.
For additional information regarding New Jersey incentive opportunities and its impact on your business or other state business credits and incentives opportunities, contact Barry Halpern at [email protected], or your Marcum State and Local Credits and Incentives professional.
