Community Development

COVID-19 Business Assistance

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Cape May County COVID-19 Business Assistance Programs

The purpose of these programs is to provide working capital funds to local established small businesses and area non-profits that have been severely impacted by COVID-19 pandemic and that does not duplicate funding available from USDA, FEMA, U.S. Treasury, Small Business Administration, or other Federal and State assistance.

Micro-Enterprise Assistance Grant Program

Eligible Grantees: Retail, restaurants, entertainment, hospitality, and non-professional service businesses including seasonal businesses with no more than 5 employees (including full and part-time) that were in business as of December 31, 2019, and have been severely impacted by COVID-19 are eligible. The businesses must have one permanent employee (which can be the business owner) who will be retained and meets the low/moderate income requirement.   Alternately, the  physical location of the building can be located within an eligible program area (low/moderate income census tract), as determined by the US Department of Housing and Urban Development (HUD).

Funding: Funding in an amount of up to $5,000 will be provided to a business or non-profit to cover working capital expenses associated with payroll, rent, utilities, insurance, and other related operating costs (excluding inventory)  for  up to  120-day  period provided that there is no duplication of  benefits with other funding (such as Payroll Protection Program).  Businesses deemed ineligible by HUD will not be eligible to participate in this Program.

Program Requirements:

1. The Business or non-profit must be located within Cape May County
2. Loan payments are not eligible expenses
3. Applicant must provide a list of expenses to be paid on grant application and backup documentation
4. Grants will not exceed 4 months (120 days) of average monthly revenue from the 2019 tax return or $5,000 total over 4 months.
5. All grants must meet CDBG National Objective for the benefitting business or non-profit.
6. There will be no duplication of benefits from other state or federal programs
7. Applicant must certify that the business will remain open or that it will reopen if grant funds are received
8. A complete application and grant agreement will be required.
9. Funds are available to all eligible applicants meeting program requirements until all funds are distributed. The County (or its agents) reserves the right to reject applications that it deems are incomplete or that do not meet the criteria of the Program.

Cape May County Forgivable Micro-loan Program:

 Eligible Borrowers: Retail, restaurants, entertainment, hospitality, and non-professional service businesses including seasonal businesses with 6-25 employees (including full and part-time) that were in business as of December 31, 2019 and have been severely impacted by COVID-19 are eligible. The businesses must have at least one permanent employee (which can be the business owner) who will be retained and meets the low/moderate income requirement. Alternately, the  physical location of the building can be located within an eligible program area (low/moderate income census tract), as determined by the US Department  of Housing and Urban Development (HUD).  The COVID-19 impact and disruption of business revenues and the associated job loss must be documented and verifiable.

Funding: Funding in an amount of up to $10,000 at 3% interest will be provided to a business to cover working capital expenses associated with payroll, taxes, rent, utilities, insurance, and other related operating costs (excluding inventory) for up to 120-day period provided that there is no duplication of benefits with other funding (such as Payroll Protection Program). Businesses deemed ineligible by HUD will not be eligible to participate in this Program.

Personal guarantees by all owners with a 20% share or  greater will be required.  Principal and interest will be deferred for a period of two years at which time the loan will be forgiven provided the company remains in business.

Should the company cease operations at any time prior to two years of  the original disbursement  of funds the loan will enter immediate repayment status. Accumulated  interest  will be added  to  the principal amount borrowed, and the principal plus accumulated interest will be amortized with monthly payments due over a five-year period at 3%.
Program Requirements:

1. The Business must be located within Cape May County
2. Loan payments are not eligible expenses
3. Applicant must provide a list of expenses to be paid with backup documentation
4. All grants must meet CDBG National Objective for the benefitting business and/or low-moderate income individuals.
5. There will be no duplication of benefits from other state or federal programs
6. Applicant must certify that the business will remain open (or  will reopen) and  will stay open for a minimum of 2 years after receipt of micro-loan. Seasonal businesses must describe their seasonal schedule within a twelve-month period and provide similar certification for two subsequent seasonal operations.

A complete application and loan agreement will be required for each program

Register to Begin Business Assistance Application