A $5 million grant program will help support small businesses affected by sinkholes that closed Route 80 in Morris County, New Jersey, Gov. Phil Murphy said.
The grants from the New Jersey Economic Development Authority (NJEDA) are aimed at assisting small businesses in Morris County that have experienced a decline in revenue due to the lane closures on Route 80 caused by the ongoing sinkhole repairs.
The Route 80 Business Assistance Grant Program will provide grants to for businesses and nonprofits located in close proximity to Route 80’s Exit 34. The grant program will go to the NJEDA Board this week for approval.
“It’s been a grueling several weeks for Morris County business owners located off the Route 80 corridor. From Wharton to Roxbury, small businesses have had fewer customers, resulting in a decline in sales and revenue. I’m happy to announce today that help is on the way,” said Murphy.
Murphy declared a state of emergency in Morris County on March 8 to expedite repairs and access federal funding.
Economic Injury Disaster Loans
The U.S. Small Business Administration also approved Economic Injury Disaster Loans (EIDL), capped at $2 million, for Morris County and the contiguous counties of Hunterdon, Passaic, Somerset, Sussex, Union, and Warren.
The EIDLs are a working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
“The NJEDA’s planned grant program, paired with the U.S. Small Business Administration’s Economic Injury Disaster Loans, will inject much-needed capital into small businesses. We are committed to doing this as swiftly as possible to ease the burden on local businesses,” Murphy added.
Route 80 Business Assistance Grant Program
The Route 80 Business Assistance Grant Program will provide grants to small businesses and non-profits that have up to 50 full-time employees. Applicants must certify a negative financial impact of at least $1,000 for the first quarter of 2025. Pending the NJEDA Board’s approval, the Authority is expected to open applications for the grant program by the end of the month. Additional program details and eligibility requirements will be available once the Board approves. Interested parties can check the NJEDA’s website and social media pages for updates.
“From natural disasters like Hurricane Sandy and tropical storms Henri and Ida, to a once-in-a-lifetime pandemic like COVID-19, the NJEDA is committed to supporting small business owners during dire times,” said NJEDA Chief Executive Officer Tim Sullivan.
Senate President Nick Scutari called the grants a “financial lifeline” for businesses suffering economically due to the traffic diversions caused by sinkhole repair work. “They need help and they need it as quickly as possible,” he said.
“The ongoing lane closures on Route 80 have severely impacted small businesses in Morris County, causing a sharp decline in revenue for many that depend on steady customer traffic,” said Senate Republican Leader Anthony M. Bucco. “These businesses are not just the backbone of our local economy — they are owned and staffed by our families, friends, and neighbors. Now, through no fault of their own, they are struggling to stay afloat.”
Route 80 Sinkholes, Ongoing Work
A large sinkhole, estimated at 40 feet wide and 40 feet deep, appeared in late December 2024 near Exit 34 in Wharton. Another sinkhole, about 11 feet wide and 4 feet deep, emerged in early February 2025, near the first one. A third sinkhole, approximately 15 feet by 15 feet, appeared on March 19, 2025, during repair work, leading to further closures.
“For many business owners, a sudden lapse in revenue can mean the difference between keeping their doors open and closing for good, and the Route 80 closures have placed an undue burden on these surrounding communities,” said Speaker Craig J. Coughlin. “Supporting our local businesses is how we keep our communities strong and our economy moving. I commend the Governor and the NJEDA for acting on this matter quickly and decisively.”
The sinkholes have caused significant traffic disruptions, including closures of I-80 eastbound and westbound lanes. Detours have diverted traffic through local roads, causing congestion, delays and disruptions.
The New Jersey Department of Transportation (NJDOT) is working to stabilize the area and address the sinkholes. Repairs involve drilling and grouting to fill voids and stabilize the roadway. NJDOT has identified 90 locations for further investigation and potential repairs.