The N.J. Economic Development Authority is now accepting applications for its Main Street Acquisition Support Grant, a pilot product under the Main Street Recovery Fund that reimburses eligible small businesses up to $50,000 in closing costs after they purchase the commercial property where their business operates.
The grant is designed for small businesses that have already made a substantial investment by buying their own building — not those still shopping for one. To qualify, a business must have closed on the property after Oct. 1, 2024, and must submit its grant application within one year of that closing date.
Businesses can’t apply in advance of a scheduled closing. The NJEDA structured it that way to make sure an applicant has already demonstrated to a lender that it can repay its mortgage before public money gets involved. Still, because the grant reimburses a portion of closing costs after the fact, it’s meant to function as a liquidity boost during the early, often financially tight period of new property ownership — especially for owners facing renovation or improvement costs.
How it works:
The small business must first go through a standard underwriting and closing process, closing on a loan through a conventional lender — defined broadly to include SBA lenders, CDFIs, MDIs, banks, credit unions, or state, county or city loan programs with their own underwriting standards.
Once the closing is complete, the business then applies to the NJEDA for the grant.
The award amount is based on line 1400 of the HUD-1 settlement statement (the amount due from the borrower, minus the purchase price or any payoffs). Businesses without a HUD-1 can substitute a Closing Disclosure or Settlement Statement to document the same costs.
A $500 fee is due at the time of approval, and the full grant amount is disbursed after execution of the grant agreement.
Eligibility requirements:
Applicants must meet the SBA’s small-business definition based on their NAICS code, and can be for-profit or nonprofit entities.
A current Tax Clearance Certificate from the NJ Division of Taxation is required before NJEDA approval.
Applicants must be in substantial good standing with the NJEDA, the NJ Department of Labor, and the NJ Department of Environmental Protection.
Only new purchases qualify — refinances of existing loans are not eligible, nor are residential-only properties or vacant land.
The business must occupy at least 1,000 square feet of usable space in the building, though it’s allowed to lease out a portion of the property to a third party.
If a real estate holding company purchased the property, the operating small business must be the applicant, with the holding company as co-applicant — but only if the two entities share identical ownership, or the small business wholly owns the holding company. Mismatched ownership structures make the applicant ineligible.
Cannabis license or certification holders — including anyone owning or controlling more than 1% of the applicant — are barred by state law from receiving the grant. Applications that meet that criteria will be declined without a refund of the application fee.
Compliance period: Grant recipients must keep operating out of the purchased property for at least five years. If the property is sold, fully leased out, or the business no longer occupies its required minimum square footage before that period ends, the NJEDA will claw back a prorated share of the grant — reduced by 20% for each full year the business remained in compliance.
The bottom line: Up to $50,000 per business, one grant per EIN, limited to a single location.
Businesses can apply and find full program details at njeda.gov/main-street-acquisition-support-grant.
