The Small Business Lease Assistance Program offers reimbursement of a percentage of annual lease payments to for profit businesses and non-profit organizations in eligible areas that plan to lease between 500 – 5,000 square feet of new or additional market-rate, first-floor office, industrial or retail space for a minimum 5-year term.
Incentive Type and Amount:
Reimbursement of a percentage of annual lease payment (for 2 years of a 5 or 10-year lease) administered as follows:
- Year 1: 15% of annual lease payment
- Year 2: 15% of annual lease payment
The Lease Assistance payment, when combined with any other governmental grants received by the applicant, cannot exceed 80% of the annual lease payment.
- A limit of one Lease Assistance grant will be approved per applicant (or related entity) over the 3-year life of the pilot program. Applicants that have been approved for a GSGZ Business Improvement Incentive are not eligible for Lease Assistance, and vice versa.
- Applicant must be planning to lease between 500 s.f. – 5,000 s.f. of new or additional first-floor, market-rate office, industrial and retail space in an eligible area for a minimum 5-year term. As this is an incentive program, no award will be made for leased space that has already been executed prior to application.
- An entity leasing more than 5,000 s.f. is eligible for Lease Assistance, but only the first 5,000 s.f. of space will be reimbursed.
- Applicants or related entities operating within a facility that has received incentives through Grow NJ or ERG are not eligible.
- Applicant must certify that they are not in default of any other EDA financing.
- High Tech and Business Incubator members in Not for Profit facilities would not be eligible for independent lease incentives (operators are eligible.)
The Small Business Lease Assistance Program is a performance-based incentive program. This means that no funding is immediately disbursed upon application approval, but rather until evidence is demonstrated that the grant terms have been met. This includes:
- Certification from the landlord that the lease agreement is not in monetary or material default and that the applicant occupied and operated from the location for the full year under which reimbursement is being requested.
- Certification that the Lease Assistance, when combined with other governmental grants, does not exceed 80% of annual lease payment.
EDA has worked with the eligible cities to determine areas within the city that are eligible for the incentive. Please contact the Program Representative listed below to determine if your project location is eligible.
Fees apply and are non-refundable.
Division of Taxation Tax Clearance Certificate required. Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.
- Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance.
- If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the Business Incentive Tax Clearance can be printed directly through PBS.
Please note: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to EDA at time of application, EDA will not proceed with approval.
Small Business Lease Assistance Program Brochure