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ABOUT THE Urban Enterprise Zone program
Benefits to UEZ firms include:
- Businesses participating in the UEZ Program can charge half the standard sales tax rate on certain purchases, currently 3.3125% effective 1/1/2018
- UEZ businesses may enjoy tax exemptions on certain purchases including capital equipment acquired and investments made to build a new facility, expand, or upgrade an existing facility.
- A need for change was recognized and State economic development activities were consolidated, creating the New Jersey Business Action Center (BAC) in the Department of State. Depending on the project, UEZ benefits will be coordinated by the economic development team in the New Jersey Business Action Center (BAC) in the Department of State. The team includes development partners in the offices of the Governor’s and Lieutenant Governor, the New Jersey Economic Development Authority (“EDA”), the New Jersey Department of Labor, the Department of the Treasury, the Department of Community Affairs, the Department of State and the local Mayor’s office. Programs of interest to zone businesses include but are not limited to:
- The New Jersey Business Action Center plays a key role in helping grow, retain and attract business to the State. The center serves as a “one-stop” shop for business. The team at the Center works to encourage entrepreneurship by supporting New Jersey’s businesses of all sizes, supporting global competitiveness of New Jersey companies, as well as to promote the State’s attractiveness as a vacation destination and business investment location nationally and internationally.
- Business Retention and Relocation Assistance Grant, available through the EDA, (“BRRAG”) for relocation and retention of at least 250 non-retail jobs where the grant is a material factor. Special limitations/bonuses for UEZs.
- Assistance from the New Jersey Department of Labor through its One Stop Centers in hiring, training, and retraining existing or new employees.
ANOUT THE Urban Enterprise Zone program
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
Mission
The New Jersey Economic Development Authority (NJEDA) grows the state’s economy and increases equitable access to opportunity by supporting high-quality job creation, catalyzing investment, and fostering vibrant, inclusive community development. NJEDA works in partnership with a diverse range of stakeholders to implement programs and initiatives that improve quality of life, enhance economic vitality, and strengthen New Jersey’s long-term economic competitiveness.
Vision
To make New Jersey a national model for sustainable and equitable economic growth by investing in communities, fostering innovation, and supporting industries with high quality-jobs in the State.
GRANTS AND PROGRAMS AVAILABLE
NJ IGNITE
NJ Ignite supports entrepreneurs by providing rent support grants. In addition, this program provides collaborative workspaces with a new tenant attraction tool.
Early stage technology and life science companies are eligible. Rent can be covered for up to 2, 4 or 6 months. Bonus months will be added if the workspace is located in an Opportunity Zone, affiliated with a hospital system or New Jersey university, or is recently established. Also, if the company is a registered MWBE, or a foreign company’s first location in the US.
NEW JERSEY INNOVATION FELLOWS PROGRAM
The Innovation Fellows program will support would-be entrepreneurs, particularly diverse entrepreneurs, with “income replacement” grants. This resource creates an opportunity for the entrepreneurs to pursue unique startup business ventures with the security of initial income replacement funding in the two-year ideation and formation period of their businesses. Per program policy and in accordance with the legislation, approved teams will be qualified to receive $200,000 as a base award, and up to $200,000 in bonuses (resulting in a total $400,000 award). Bonuses include $50,000 if any one of the entrepreneurs in a team resides in an Opportunity Zone within the State.
Small Business Lease Grant
The Small Business Lease Grant supports the growth and success of small businesses and nonprofits by providing grant funding to cover a portion of lease payments. This resource will help establish and grow of small businesses, while also helping to fill space that is currently vacant and prevent future vacancies. A total of $10 million of Main Street Recovery Finance Program funding will be utilized to capitalize the Small Business Lease Grant. Of this $10 million allocated for the program, 40 percent ($4 million) will be reserved for businesses located in Opportunity Zone eligible census tracts. Applications will be accepted on a rolling basis until funding is exhausted.
