| Description: |
1. SMART GROWTH PREDEVELOPMENT FUNDING- Low interest loans and guarantees up to $1 million are available for non-contaminated site preparation.
2. FUND FOR COMMUNITY ECONOMIC DEVELOPMENT- Low interest loan up to $50,000 to help finance feasilbility study.
3. BROWNFIELDS REDEVELOPMENT LOAN PROGRAM- Below market loan program to help developers/businesses with site remediation.
4. HAZARDOUS DISCHARGE SITE REMEDIATION FUND- Financial assistance available to municipalities, developers, businesses and homeowners to investigate or remediate sites of hazardous materials. In partnership with Department of Environmental Protection.
5. LOW INTEREST LOANS- Low interest financing available to businesses expanding or locating in New Jersey.
6.URBAN PLUS Available to qualified New Jersey-based businesses located in an endorsed New Jersey municipality, the program provides secure financing via loans. Companies can receive up to $3 million loans from the EDA with a below-market interest rate that is 50% of the Federal Reserve Discount Rate, with a floor of 2%. Financing is available for up to 50% of business-related project costs. The Urban Plus Program provides financial support to small, women- or minority-owned businesses, manufacturers, redevelopers and non-profit organizations in the following endorsed New Jersey municipalities: Camden, Trenton, Newark, Jersey City, Paterson, Elizabeth, East Orange, New Brunswick, and Atlantic City.
7. STATEWIDE LOAN PROGRAM Available to New Jersey-based businesses that create or maintain jobs, located in a financially targeted municipality, or represent an industry which the EDA has targeted for assistance, including manufacturing, industrial, high-tech and more. The program provides a combination of EDA and bank financing under the Statewide Loan Pool Program so the business can receive the benefit of a below-market, blended interest rate. Maximum loan amounts include:
Fixed Assets
Loan: $1.25 million
Guarantee: $1.5 million
Total Exposure: $2.75 million
Working Capital
Loan: $750,000
Working Capital Guarantee: $1.5 million
Total Exposure: $2.25 million
Terms generally match that offered by the bank, but are limited to 10 years with amortization up to 20 years.
8. MAIN STREET BUSINESS ASSISTANCE PROGRAM Available to small or mid-sized businesses or nonprofit organizations in operation for at least two years and in need of financing in New Jersey, the limited-term program provides financial support to commercial banks in New Jersey to assist in offering loans and guarantees to small and mid-sized businesses and nonprofit organizations with projects in New Jersey. There are two components to the Main Street Business Assistance Program: bank term loan participations and/or guarantees and line of credit guarantees. Loan participations are avaiable up to 25% of the total transaction (not to exceed $1 million for fixed assets and $750,000 for working capital. Loan guarantees are available up to 50% of the total transaction (not to exceed $2 million for fixed assets and $1.5 million for working capital). Line of credit guarantees are available up to 50% of the total transaction (not to exceed $250,000). Funds can be used toward working capital, fixed assets and refinancing of debt.
9. LOCAL DEVELOPMENT FINANCING FUND Available to New Jersey businesses located in an urban aid* municipality, the program provides secure financing through the Local Development Financing Fund (LDFF). LDFF is a revolving loan fund administered by the EDA. The loans are generally subordinate in collateral position but not subordinate in payments to the borrower’s other secured debt. The loans are available up to $2 million, with a rate of 50% of the Federal Discount Rate at closing and 2% interest rate floor and can be used toward fixed assets only, such as property and equipment.
10.NJ BUSINESS GROWTH FUND
Available to – Credit-worthy small or mid-sized company operating in New Jersey that is creating or retaining jobs in New Jersey.
Program Provides – Below-market-interest-rate financing through the New Jersey Business Growth Fund, a joint program of the EDA and PNC Bank—the only one of its kind in the State.
Benefit Amount – Up to $2 million
Benefit Uses – The funding of real estate or equipment
Requirements – Borrowers must commit to creating one full-time job in New Jersey for every $50,000 of guarantee provided by the EDA for such loans with the exception of manufacturers, which must commit to maintaining existing full-time jobs in New Jersey. Borrowers must demonstrate creditworthiness that meets PNC Bank and the EDA's existing standards for business loans.
The primary business checking account must be maintained at PNC Bank.
1.1:1 Debt Service Coverage Ratio
100% loan to value for real estate and 90% for equipment
TERMS: Interest rate of either Prime minus 2.5% floating or fixed at the 5-year U.S. Treasury note rate, plus 1%.
Loan terms of up to 5 years for machinery and equipment (with up to 10-year amortization) and up to 5 years for owner–occupied real estate purchases (up to 20-year amortization).
Preference is given to borrowers located in targeted geographies throughout the State of New Jersey, and in targeted industries such as manufacturing, business/personal services, technology drivers, transportation and wholesale trade.
The loan approval process involves both PNC Bank and the EDA, and both organizations will work together in making a credit decision on each loan application.
Fees – Application fee: $500
Commitment Fee: $ 750
Extension: $750
Guarantee: ½% of guaranteed portion of loan for every year of guarantee.
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| Eligibility Requirements: |
1. Developers undertaking commercial, industrial, office, and mixed use projects in urban, rural and suburban areas. Must have local community support.
2. Must meet EDA requirements.
3. Borrowers must have a signed agreement with Commerce, Economic Growth and Tourism.
4. Businesses may borrow up to $1 million. Municipalities may apply for grants and loans up to $2 million for properties owned. Must have viable plan to redevlop within three years.
5. Business must be credit worthy. Funds may be used for buildings, equipment or working capital.
6. Eligible companies must have documented support of the municipality, and possess fixed-asset collateral such as real estate and/or equipment. Funding provided by the EDA must be used to create or maintain jobs, increase ratables, or leverage public financing by a ratio at least 1:1.
7. To be eligible for the program, the business or nonprofit entity should meet one of the following criteria:
Create one new job for every $50,000 of EDA assistance and
be located in a targeted or urban aid municipality or operate within an industry targeted for financing, such as manufacturing, industrial or technology.
8. Collateral required for participations and guarantees. Company must be in good standing with EDA, Federal/State agencies, and requesting bank. Company must have no criminal history for owners, business, or guarantors. Minimal credit score of 680 for at least one of the guarantors.
9. Funding is for commercial or industrial projects located in an urban aid municipality. Municipal sponsorship is required as well as a support letter and resolution from City Council. Applicant must demonstrate that financing under this program is critical to the project’s success. The company must create one new job for every $25, 000 of EDA assistance. Financing for the total project is limited to 1:1 public/private dollar match and funds cannot be used for construction financing, working capital or refinancing. |
