Applications are slated to open at 10 a.m. on April 22 for a $5 million pool of state aid meant to help Morris County businesses hurt in recent weeks by traffic detours due to the Route 80 sinkholes.
The grants will range from $1,000 and $15,000, depending on the number of employees, according to the New Jersey Economic Development Authority, which is overseeing the program.
Applications for the grant money will be available on the state Economic Development Authority’s website and will be considered on a first-come, first-serve basis.
In addition, businesses affected by the sinkholes can apply for federal low-interest loans of up to $2 million from the U.S Small Business Administration.
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The SBA is operating a “Business Recovery Center” at the Wharton Municipal Building at 10 Robert St., Wharton, from 8:30 a.m. to 5 p.m. Monday through Friday, and 10 a.m. to 2 p.m. on Saturday.
For the state grants, applicants have to show they’ve suffered a loss of at least $1,000 in the first quarter of 2025. And they have to have been in business at least as of Dec. 1, 2024.
In addition, the EDA will run a virtual information session at 6 p.m. on April 16 for businesses looking to apply for state aid.
For the federal disaster relief loans, businesses can apply by calling 1-800-659-2955 or visiting sba.gov/disaster. The loan application deadline is Jan. 2, 2026.
Businesses in downtown Wharton say that in recent weeks they have faced the brunt of traffic being redirected onto local roads from the Route 80 sinkhole closure.
Due to the traffic, residents and shoppers said they’ve avoided downtown Wharton, as well as nearby big box stores and the Rockaway Townsquare mall.
How the state grants work
Grants will first be available to businesses within 5 miles of the sinkholes, followed by those businesses 5.01 miles to 10 miles, and finally those more than 10 miles away, provided they are based in Morris County.
There should at least be enough funding for businesses within 5 miles of the sinkhole to access funding, but beyond that the program might be “oversubscribed,” Bruce Ciallella, the NJEDA’s chief operations and compliance officer, said during an April 9 board meeting.
There is an initial $5 million for the grant program, plus the potential for an additional $15 million in county, state and federal funds.
The maximum grant sizes are:
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Up to five full-time equivalent employees: $5,000
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Between six and 20 full-time equivalent employees: $10,000
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Between 21 and 50 full-time equivalent employees: $15,000
In the EDA grant application, the number of full-time equivalent employees is “based on weeks worked and wages compared to the state’s minimum wage” in a business’s filings with the state Labor Department, according to board documents.
“Phases two and three are based on funding availability, so those phases aren’t guaranteed,” said Chris Flores, an NJEDA spokesperson.
How long will the application take?
SBA spokesperson Tishon Powell said business owners can expect to spend up to 20 minutes filling out the loan application.
“Applicants will generally hear something immediately or within [two to three] weeks from the processing center,” he said in an email.
State officials did not have a timeline for how long the application would take to complete, how long the state would take to process the application, and how long approved businesses would have to wait to receive grant money.
Those businesses denied a state grant will have between three and 10 days of their denial letter to submit an appeal.
If you’re an impacted business interested in sharing your experience in applying for and obtaining government relief, reach out to NorthJersey.com Business Reporter Daniel Munoz at 201-270-9870 or [email protected].
Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.
Email: [email protected]; Twitter:@danielmunoz100 and Facebook
This article originally appeared on NorthJersey.com: Apply this month for NJ aid to businesses hit by sinkhole mess
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