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 jobs, is located in a targeted municipality, or represents an industry which the EDA has targeted for assistance.

 Approved participating banks can request a participation and/or guarantee through the EDA. 

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

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 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, 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
The base rate is the 5-Year United States Treasury plus 100 basis points (for fixed rate loans) and Prime minus 150 basis points (for variable rate loans).  The base rate will be adjusted using criteria which includes the applicant's creditworthiness, public policy and amortization.  The interest rate floor for the program is 3.00%.


  • 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.