Entrepreneur teams looking to launch businesses in New Jersey can apply for grants of up to $400,000 through the New Jersey Innovation Fellows Program.
The New Jersey Economic Development Authority opened applications Sept. 9 for the program’s third cohort. Applications are due Friday, Dec. 4, at 5 p.m.
The program provides income-replacement grants to teams of entrepreneurs developing startup businesses. Participants also receive mentorship, technical training and access to other founders, advisers and investors during the two-year program.
Each approved team can receive a base grant of $200,000, with up to another $200,000 available through bonuses. Awards are distributed quarterly over two years, provided teams meet program milestones. A team can receive a $50,000 bonus if at least one entrepreneur lives in a designated New Jersey Opportunity Zone. Additional $50,000 bonuses, up to $150,000, are available for qualifying team members who self-certify as women or minorities or graduated from a two- or four-year state college or university.
Teams must include at least three full-time entrepreneurs, and at least half of the leadership team must qualify as first-time entrepreneurs. The team also must hold a majority equity interest in the business.
Under the program, a first-time entrepreneur cannot previously have been a founder, co-founder or owner of a New Jersey business in a targeted industry that received professional angel, venture capital or private equity funding. Entrepreneurs receiving funding must commit to working on the venture for two years on a full-time basis, defined as at least 35 hours per week. Outside or part-time employment is limited to no more than 20 hours per week.
Participants also must take part in a two-year mentorship program offered through the New Jersey Innovation Institute or Rowan Center for Innovation & Entrepreneurship. Training covers areas including finance, human resources, marketing, product development, raising capital, contracts and business structure.
Eligible businesses must operate in one of the NJEDA’s targeted industries, which include advanced manufacturing, transportation and logistics, aviation, clean energy, clean technology, life sciences, information and high technology, finance and insurance, professional services, film and digital media, and non-retail food and beverage businesses.
Businesses also must be based in an eligible municipality. In the U.S. 1 area, those include Princeton, Plainsboro, West Windsor, Trenton, South Brunswick and New Brunswick. Applications are due Friday, Dec. 4, at 5 p.m. The application fee is $250.
For more information or to apply, go to njeda.gov/new-jersey-innovation-fellows-program.
