OCEANPORT — Storm-impacted business owners who are seeking funds from the state’s Stronger New Jersey Business Grants program will be able to meet with officials from the N.J. Economic Development Authority (EDA) without traveling to Trenton.
Officials from the EDA’s Office of Recovery are setting up space at Russell Hall on Fort Monmouth to process grant and loan applications submitted by business owners affected by the superstorm.
“The notion is to be here in the field. So when businesses have to talk to our business advocates about their applications, they don’t have to go all the way to Trenton,” EDA representative Tim Lizura said.
The EDA is allocating $460 million of the state Community Development Block Grants (CDBG) to the state’s Disaster Recovery Action
Plan to support the recovery of impacted businesses.
Created on May 1, the Stronger NJ Business Grant Program will allocate $260 million of those funds for grants of up to $50,000 to small businesses that sustained at least $5,000 in Sandy-related physical damages.
According to Lizura, the EDA is already processing more than 100 applications, and business owners should begin receiving monies soon.
“We had 100 applications that have come in various stages of completeness. We are trying to get the ones that are most complete reviewed and approved.”
Lizura added that there are specific guidelines and recommendations from the U.S Department of Housing and Urban Development that have to be reviewed.
“It’s not as easy as we would like, but we have to follow it,” he said.
To be eligible, businesses must have at least one location in New Jersey and must have been in existence at the time of the storm, according to a press release by the EDA.
Applicants must also meet the definition of a small business, as defined by the U.S. Small Business Administration (SBA), and have annual revenues of at least $25,000 and no more than $5 million. Businesses must have less than $1 million of liquid assets at the time of application.
Additionally, businesses must have applied for a disaster-related loan through SBA.
Grant funds may be used for reimbursement of working capital, inventory, equipment, renovation and new construction at the place of business.
“It’s very involved,” said Brian L. George, owner of North Shore Menswear in Sea Bright, which was significantly damaged during the Oct. 29 storm.
While the store has reopened in a new lo- cation in Sea Bright, George said he is applying for the business grant to cover his losses.
“Although I got my flood insurance, it didn’t cover my losses,” George said. “I lost close to $200,000.”
However, George said that to be eligible he must also resubmit an application for an SBA loan, which he withdrew previously.
“Basically, the loan that they were going to give me, I could have gotten at my local bank. It was the same interest rate. I withdrew the application,” he said. “Now I find out that I have to renew the application in order to be considered for the grant.”
Cliff Moore, president of the Northern Monmouth Chamber of Commerce and owner of the Keyport IHOP, is critical of the grants, stating that many businesses aren’t eligible.
“It’s great that the money is there, but you have to have a FEMA (Federal Emergency Management Agency) number and you had to apply to SBA,” Moore said.
“The small businesses that are struggling, most don’t have a FEMA number because the buildings were not necessarily damaged. So we are not eligible for the money even though our sales are down in the area. That is not helping the business owner who is struggling right now.”
Lizura said the purpose of the grant program is to satisfy unmet needs. According to the EDA website, these are defined as financial needs not satisfied by other public or private funding sources, including FEMA Individual Assistance funds, SBA disaster loans or private insurance.
“This money is supposed to be money for last resort. So you are supposed to exhaust other options first,” he said.
He explained that businesses that have not applied for SBA funds are still able to apply for working capital until July.
Those seeking grants to cover inventory losses don’t have to apply to SBA and can apply directly to the EDA, he said.
“Inventory is put into the physical damage category, which is now closed,” Lizura said.
Those who have been denied an SBA loan are also still eligible and can apply directly to the EDA.
“If you have gotten a determination and gotten denied by SBA, then you can just come in to us,” Lizura said. “You don’t have to reapply.”
Members of the Fort Monmouth Economic Revitalization Authority (FMERA) approved a resolution allowing the EDA to rent the third floor of Russell Hall, located in the Oceanport section of Fort Monmouth, during the May 15 board meeting.
Lizura, who is also a member of the FMERA board, said locating at Fort Monmouth makes the most sense since EDA staff is already located at the fort and Russell Hall is a central location, which would make communication with local business owners easier.
“Russell Hall was the quickest building to move into, and we had to be up and running as soon as possible,” he said.
Applications for the Stronger NJ Grant Program are available until Oct. 31.
For more information visit application.njeda.com/strongernjbusinessgrant/ pdf/StrongerNJBusinessGrantFAQS.pdf.