Financing Programs - Statewide Loan Pool Program

This program is partially funded through the State Small Business Credit Initiative (SSBCI).

IF YOU ARE: A New Jersey-based business that creates or maintains jobs.

AVAILABLE ASSISTANCE: Approved Premier Lender banks can request a participation and/or guarantee through the EDA, or line of credit guarantees up to 50% of the line of credit amount, not to exceed $750,000.

TO BE USED FOR: Fixed assets and permanent working capital.


Bank Loan Participations or Guarantees:

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:

For Fixed Assets:
Loan: $2 million  
Guarantee: $1.5 million
Total Max Exposure: $2.75 million

For Working Capital:
Loan: $750,000  
Working Capital Guarantee: $1.5 million
Total Exposure: $2.25 million
Line of Credit Guarantees:

EDA also offers line of credit guarantees up to 50% of the line of credit amount, not to exceed $750,000.

BENEFITS: The EDA's involvement in a bank loan reduces the bank's credit risk and lowers the cost of borrowing for the customer. 

PROGRAM DETAILS:   EDA participation provides terms of up to 5 years.  Amortization can be up to 5 years for working capital, 10 years for equipment transactions, and 20 years for real estate transactions.   

To be eligible for the program, the borrower must create or maintain one job for every $65,000 of EDA assistance.

The base rate is the 5-Year United States Treasury or 2%, whichever is higher.  The base rate will be adjusted based upon the applicant's creditworthiness.

  • Application fee: $1,000
  • Commitment fee: $750 upon acceptance of EDA's commitment letter
  • Guarantee fee: Up to 0.5% sized to percentage guarantee required, not to exceed 0.5%. (For example, 25% guarantee will require a 0.25% fee, 50% guarantee will require a 0.5% fee.)
  • 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.