It’s back! The New Jersey Economic Development Authority (NJEDA) announced this week that it will open applications for the second phase of its Manufacturing Voucher Program (MVP) on Monday, February 12, 2024, at 10:00 am. Phase I of the MVP was launched in November 2022, and according to Governor Murphy’s office, over $23 million of funding was awarded to 189 manufacturers in New Jersey.
The current Phase will allow NJEDA to award up to $20 million to eligible manufacturers located in New Jersey to support the purchase of eligible manufacturing equipment. Eligible manufacturers must meet criteria including:
- Applicants must be in good standing with the State of New Jersey and be registered to do business in the state.
- The company must be a manufacturer in a targeted industry, or the equipment being considered must meet the definition of advanced manufacturing. Targeted industries include:
- Advanced manufacturing
- High technology
- Life Sciences
- Non-retail food and beverage
- Advanced transportation and logistics
- Autonomous vehicle research or development
- Information technology industry (excluding IT service providers, web design services, or IT used in other industries to support general business operations)
- Hemp processing
- Clean energy
Manufacturers in non-targeted industries will be considered if the equipment being purchased meets the definition of advanced manufacturing. This is defined as equipment that will integrate advanced or innovative technologies, processes, and materials to improve the manufacturing of products. Examples include additive manufacturing technologies, robotics, and computer-aided manufacturing.
- Applicants must provide a quotation with equipment to be purchased and related costs. The equipment plus the cost of installation must be $25,000 or greater to qualify.
- Not-for-profit organizations are allowed to apply but not home-based businesses.
Awards will range from $7,500 to $250,000 per manufacturer. Awards are only granted for equipment for which a signed contract or purchase order is not already in place. Similarly, deposits placed on equipment will not qualify for the grant. Companies with 100 full-time employees or fewer may have a maximum award starting from 30% to 50% of the total cost of equipment plus installation, up to $250,000. Companies with more than 100 full-time employees may have a maximum award from 30% to 40% of total cost, with the same maximum limit. Manufacturers can increase their award above 30% by qualifying for stackable 5% bonuses by placing the equipment in a facility located in an opportunity zone, by qualifying as an NJ-certified woman, minority, or veteran-owned business, or by qualifying as a union with 50 or fewer full-time employees. An additional 10% stackable bonus is available if the equipment is sourced from a New Jersey manufacturer.
For example, a small manufacturer with fewer than 100 full-time employees in a targeted industry that is contemplating the purchase and installation of equipment totaling $500,000, would be eligible for a grant of $150,000 ($500,000 times 30%). If the manufacturer is a NJ-certified woman-owned business and is purchasing the equipment from a NJ manufacturer, the applicant would be entitled to an additional 15% of grant funds amounting to $75,000, bringing the total grant to $225,000 ($500,000 times 45%).
Interested manufacturers should consider familiarizing themselves with the pre-qualification items needed to start the application process by visiting the NJEDA’s website at www.njeda.gov. Those who are considering eligible equipment purchases should consider compiling the information and costs for anticipated acquisition. Potential applicants should be aware that there is a $1,000 non-refundable fee per application. The application window will be open until the $20 million allotment of funds has been awarded. The online application is available at https://programs.njeda.com/en-us/
For additional information or support regarding the NJEDA Manufacturing Voucher Program, please contact the NJEDA call center at 844-965-1125 or a member of HBK Manufacturing Solutions at 330-758-8613 or firstname.lastname@example.org.
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