Some 65 local businesses shared in more than a quarter-million dollars in funding through the Rahway Coronavirus Aid Relief & Economic Stimulus (CARES) program.

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A total of $252,500 was distributed across two rounds of approvals. Fifty businesses received funds in the first round, which totaled $215,000 overall:

• 23 received $5,000
• 19 received $4,000
• 8 received $3,000

Of the 124 valid applications submitted, 59 were not granted for various reasons such as being property owners, home-based businesses or businesses that have not been opened for a year, according to Public Relations Coordinator Lauren Ferrigno.

Fifteen businesses received $2,500 each in a second round of funding that totaled $37,500. The second round was for merchants that were not approved during the first based on the credit requirements, according to Ferrigno. Since there were a number of places that did not pass the first round, the administration wanted to offer any assistance possible to local businesses that applied, “which is why the second round was a flat rate across the board,” she said.

Three businesses that did not receive funds in the second round did not respond to the city or UCEDC after submitting the original application, according to Ferrigno.

To access the complete list of businesses that received CARES funding, see this Patreon post.

There were different levels of funding available, ranging from $3,000 to $5,000, based on the city’s formula:

• Arts/Retail – $5,000
• Personal Service, 1 open/set hours – $5,000
• Restaurant, full service – $5,000
• Retail, 1 open/set hours – $4,000
• Business Service, open to public – $4,000
• Food 2, regular hours/open to public – $4,000
• Retail 2, irregular hours, consignment – $3,000
• Personal Service 2, appointment only – $3,000
• Food 1, take out/appointment/irregular hours – $3,000
• Miscellaneous – $3,000
• Arts – $3,000

Professional services were not be considered based on the executive order.

Funds for the program were reappropriated from taxes collected for the expanded Special Improvement District (SID), which were released from escrow after a legal challenge. Rahway CARES is run in conjunction with the Rahway Arts & Business Partnership (RABP) and the United County Economic Development Corporation (UCEDC).

Eligible businesses, which did not include nonprofits and national franchises,  must have:

• been in businesses at least one year;
• less than 20 employees; and
• a personal credit score of 650 or higher.

The $5,000 loan is forgivable after two years but if a business moves or goes out of business before then it would be responsible for paying back the loan. Loan applications opened May 4 and administered by the county.

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