IF YOU ARE: A New Jersey-based business that creates or maintains jobs, located in a financially targeted municipality, or representing an industry which the EDA has targeted for assistance, including manufacturing, industrial, high-tech and more.
AVAILABLE ASSISTANCE: Your financial institution can request a participation and/or guarantee through the EDA.
TO BE USED FOR: Fixed assets and permanent working capital.
MAXIMUM AMOUNTS:
Under the Statewide Loan Pool program, the EDA can participate in or guarantee up to 50% of a bank loan. The maximum EDA exposure is:
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
BENEFITS: The Statewide Loan Pool program makes the financing more economical and can help ensure the viability of a company’s project.
PROGRAM DETAILS: EDA participation provides terms of up to 5 years. Amortization can be up to 5 years for working capital, 7 years for equipment transactions, and 15 years for real estate transactions.
To be eligible for the program, the borrower should meet 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
FEES*:
Application fee: $1,000
Commitment fee: $750 upon acceptance of EDA’s commitment letter
Guarantee fee: 0.5% of the guarantee exposure multiplied by the number of years the guarantee is in effect (if required)
Extension fee: $750 for each extension
Bank fees negotiated between bank and borrower
- Division of Taxation Tax Clearance Certificate Application Processing Fee: $75 for standard processing; $200 for expedited processing (response within three business days)
*All fees are non-refundable.
