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. 

• 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

Currently, the interest rate for this program is based on the 5-Year United States Treasury (for fixed rate loans) and Prime (for variable rate loans).

As of April 1, 2010, the base rate will be the 5-Year United States Treasury plus 100 basis points (for fixed rate loans) and Prime minus 150 basis points (for variable rate loans).  Additionally, a new interest rate pricing model will be implemented, which will include criteria that will adjust the rate offered on fixed and variable rate loans based on the applicant's creditworthiness, public policy and amortization.  The interest rate floor for the program is 3.00%. 

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.