New Jersey EDA Launches New Small Business Loan Program
The New Jersey Economic Development Authority (NJEDA) has introduced a new $30 million pilot loan program called the New Jersey Loan Expansion and Network Development (NJ LEND). This initiative aims to boost economic activity in the Garden State by providing low-cost financing to small businesses that typically lack access to such resources, thereby promoting job creation.
This program was created due to New Jersey Governor Phil Murphy’s emphasis on supporting the needs of small businesses. Governor Murphy has consistently highlighted the importance of small businesses to the state’s economy and has advocated for initiatives that provide them with the necessary resources to thrive. Some benefits of NJ LEND for small businesses include lower interest rates and longer repayment terms, making it easier for these business owners to manage their finances and invest in growth opportunities.
The NJ LEND program is inspired by NJEDA’s existing Premier Lender and Direct Loan programs but offers significantly higher lending limits. Unlike the existing programs that capped loans at $2 million, NJ LEND almost doubles this amount, providing fixed asset loans of up to $5 million and giving small businesses more substantial financial support.
Key features and requirements for funding include:
- Flexible Lending Options: The program will offer loans and line of credit guarantees in collaboration with NJEDA Premier Lender financial institutions.
- Loan Types: The program will provide fixed asset loans of up to $5 million to purchase or refinance owner-occupied commercial real estate or new equipment. Working capital loans of up to $1 million will also be available.
- Job Creation and Retention: Businesses receiving funding must create or retain one full-time job for every $65,000 in NJEDA loan exposure.
- Eligibility: For-profit and nonprofit entities in New Jersey with less than 750 employees are eligible to apply for NJ LEND loans.
For more information or to apply, interested businesses can email [email protected]. The NJEDA should release more program guide details on its website, similar to its existing programs, which provide items such as eligibility criteria and an application checklist.
For other financing and incentives programs in NJ, please visit the NJEDA website here.
Author: Kiana McGowan, CPA | [email protected]