10-04-2025
Businesses hurt by Route 80 sinkhole traffic can get NJ, US aid. Here's how
North Jersey businesses that have been hurt in recent weeks from the traffic detours due to Route 80 sinkholes can apply for federal low-interest loans of up to $2 million and state grants of between $1,000 and $15,000, depending on the number of employees.
The grant applications are expected to open by the end of April, according to Chris Flores, a spokesperson for the New Jersey Economic Development Authority, which is overseeing the grant program.
In addition, the U.S Small Business Administration will operate a 'Business Recovery Center' at the Wharton Municipal Building at 10 Robert St., Wharton, from 8:30 a.m. to 5 p.m. Monday through Friday, and 10 a.m. to 2 p.m. on can also apply for the federal loans by calling 1-800-659-2955 or visiting
Businesses in downtown Wharton say that in recent weeks they have faced the brunt of traffic being redirected onto local roads from the Route 80 sinkhole closure.
Meanwhile, residents and shoppers said they've avoided downtown Wharton, as well as nearby big box stores and the Rockaway Townsquare mall.
'These guys are getting crushed,' Gov. Phil Murphy said of Wharton businesses. 'If you're a local businessperson, it's a huge burden.'
Officials for the state Transportation Department said two westbound lanes of Route 80 are expected to reopen by May 4, with two eastbound lanes to reopen by May 18. All lanes of the highway are anticipated to reopen in both directions by June 25, though officials said that timeline depends on weather conditions and the ongoing structural testing.
Businesses close to Route 80's Exit 34, where the sinkholes are located, can apply for grants of up to $15,000 from the state EDA.
State officials created the program with similar authority that granted the agency power to operate business assistance programs during the COVID-19 pandemic, and in the aftermath of the Henri and Ida tropical storms.
The maximum grant sizes are:
Up to five full-time equivalent employees: $5,000
Between six and 20 full-time equivalent employees: $10,000
Between 21 and 50 full-time equivalent employees: $15,000
In the EDA grant application, the number of full-time equivalent employees is 'based on weeks worked and wages compared to the state's minimum wage' in a business's filings with the state Labor Department, according to board documents.
Grants are awarded on a first-come, first-served basis according to the submission date of every application.
Grants will first be available to businesses within five miles of the sinkholes, followed by those businesses 5.01 miles to 10 miles, and finally those more than 10 miles away, provided they are based in Morris County.
'Phases two and three are based on funding availability, so those phases aren't guaranteed,' said Flores, the NJEDA spokesperson.
Businesses must show that they've suffered a negative financial impact of at least $1,000 in the first three months of 2025, according to board documents, and must have been in operation since Dec. 1, 2024.
They must have a physical location in Morris County. Home-based businesses and landlords are ineligible for aid under the program.
Gambling sites, adult stores and shops going out of business would not be eligible for grants.
Businesses will not be charged any fees in connection with their applications. Those businesses denied grants will have between three and 10 days of their denial letter to submit an appeal.
State officials expect many applications, so they will be 'automating a number of the processing steps' online.
There should at least be enough funding for businesses within five miles of the sinkhole to access funding, but beyond that the program might be 'oversubscribed,' said Bruce Ciallella, the NJEDA's chief operations and compliance officer, during an April 9 board meeting.
There is an initial $5 million for the grant program, plus the potential for an additional $15 million in county, state and federal funds.
New Jersey economic officials will host an in-person info session at 5 p.m. on Monday at the Wharton Municipal Building. There will be a virtual session at 10 a.m. on Tuesday and 6 p.m. on Wednesday.
The federal loan aid, meanwhile, falls under the SBA's Economic Injury Disaster Loan program. Businesses and nonprofits can apply for federal loans of up to $2 million that carry no interest accrual for the first year and don't require payments during that time.
'It's simply to help businesses stay in business,' said Tishon Powell, a spokesperson for the SBA.
During the term of the federal SBA loans, which can be up to 30 years, interest rates would not go above 4%.
Applicants will need to show their credit history and a means by which they will repay the loans. The application deadline is Jan. 2, 2026.
Collateral, typically real estate, is required for loans of over $50,000, the SBA said. Loans of under $200,000 'will not require the owner of the business to use their primary residence as collateral if it is determined the owner has other assets of equal quality and a value equal to or greater than the amount of the loan," according to the SBA website.
The loans are available to businesses in Morris County, as well as Essex, Hunterdon, Passaic, Somerset, Sussex, Union and Warren counties, the SBA said.
SBA spokesperson Powell said business owners can expect to spend up to 20 minutes filling out the application.
'Applicants will generally hear something immediately or within [two to three] weeks from the processing center,' he said in an email.
If you're an impacted business interested in sharing your experience in applying for and obtaining government relief, reach out to Business Reporter Daniel Munoz at 201-270-9870 or munozd@
Daniel Munoz covers business, consumer affairs, labor and the economy for and The Record.
Email: munozd@ Twitter:@danielmunoz100 and Facebook
This article originally appeared on NJ businesses hurt by Route 80 sinkhole can get aid
