NJEDA Encourages COVID-Impacted Businesses to Explore Its Established Financing Options
The NJEDA encourages businesses to explore the following programs, which pre-date the COVID-19 outbreak.
Micro Business Loan Program: Through this program, the NJEDA makes financing of up to $50,000 available to for-profit New Jersey businesses, which can use the financing for working capital or to purchase equipment. To ensure that the financing is accessible to the early-stage and micro businesses that need it most, to qualify, a business must have annual revenues of less than $1,500,000 in the most current fiscal year and cannot have more than 10 full-time employees at time of application.
Small Business Fund: The Small Business Fund offers loans of up to $500,000 for qualifying creditworthy small, minority- or women-owned businesses in New Jersey with up to $3 million in revenue that have been in operation for at least one full year and may not have the ability to get bank financing. Not-for-profit corporations that have been operating for at least three full years may also be eligible for assistance under the Small Business Fund.
Direct Loans: Direct loans are available up to $2 million for fixed assets, and $750,000 for working capital. New Jersey businesses in need of financing and committed to job creation/retention may be eligible for direct loans through the NJEDA when conventional financing is not available. NJEDA’s direct loan financing offers competitive interest rates and terms.
Premier Lender Program: In partnership with two dozen banks throughout New Jersey, The Premier Lender Program offers up to a $2 million loan participation or $1.5 million loan guarantee for fixed assets, and up to a $750,000 loan participation or $1.5 million guarantee for term working capital. Line of credit guarantees of up to $750,000 are also available.
More details about each of these programs can be found on the NJEDA’s website at http://www.njeda.com/small_midsize_business.
In addition to these programs, which pre-date the COVID-19 outbreak, the NJEDA also launched a suite of programs specifically designed to address the challenges the outbreak has caused. These initiatives include grants, loans, guarantees, and support for entrepreneurs and community development financial institutions. The grant and loan programs are currently oversubscribed, but the NJEDA is actively seeking funding from federal, corporate, and philanthropic sources to expand them. Small business owners seeking more information about any of these programs should visit New Jersey’s COVID-19 Business Information Hub at https://cv.business.nj.gov.
If you have any questions or comments about the above, please feel free to reach out to Hilary Beckett, Manager, Government Affairs, at hbeckett@chambersnj.com.
