Second round of business grants available

Another $250,000 in ~~forgivable loans~~ grants will be available to eligible businesses in a second round of Rahway CARES Act funding. Eligible businesses can receive up to $4,000.

Become a Patron of RahwayRising.com

Editor’s note: The original post was updated to clarify the the second round of funding will be grants and not forgivable loans.

The first round of Rahway CARES (Coronavirus Aid, Relief, and Economic Security) Forgivable Loan Program was funded through taxes collected for the Special Improvement District (SID). The second round, launched this month, also will be funded through SID Dollars but will be grants and not forgivable loans.

Eligible businesses must:

be located in the Special Improvement District (SID)
have 20 or fewer full-time employees
have been in business for at least one full year.

The grants can be used for rent payments, operational costs, defraying marketing costs, and covering employee wages. National franchises, nonprofits, and some professional services are ineligible.

~~The loan is not repayable unless businesses move, sell, or close during the first two years after the loan is approved.~~

Like the first round of funding in the spring, Rahway CARES is run in conjunction with the Rahway Arts & Business Partnership (RABP) and the United County Economic Development Corporation (UCEDC).

The first round of the Rahway CARES Forgivable Loan Program in the spring awarded more than $250,000 to 65 businesses. Different levels of funding were available, ranging from $3,000 to $5,000, based on the city’s formula.

The first round of the program received 124 valid applications submitted but 59 were not granted for various reasons, such as being property owners, home-based businesses, or business that had not yet been open for a year.

The RABP manages the SID budget, which is generated by a special assessment on about 140 business downtown. Historically, that had raised about $130,000. Several years ago, City Council expanded the SID beyond downtown to include the entire city, which was challenged in court by a group of local businesses before litigation ended in 2019. A citywide SID is expected to generate about $750,000 annually.