IF YOU ARE: A creditworthy small or mid-sized company that is creating or retaining jobs in New Jersey
YOU CAN APPLY FOR: Financing through the New Jersey Business Growth Fund, a joint program of the EDA and PNC Bank.
IN THE AMOUNT OF: Up to a $3 million bank loan with a 25% or 50% EDA guarantee. The maximum EDA guarantee is $1.5 million.
TO BE USED FOR: The funding of real estate or equipment.
PROGRAM DETAILS: The loan approval process involves both PNC Bank and the EDA, and both organizations will work together in making a credit decision on each loan application. Applicants under this program must meet specific eligibility requirements:
- Commit to create or maintain one full-time job in New Jersey for every $50,000 of guarantee provided by the EDA.
- Demonstrate creditworthiness that meets PNC Bank's and the EDA's existing standards for business loans.
- The primary business checking account must be maintained at PNC Bank.
- 1.1X Debt Service Coverage Ratio.
- 100% loan-to-value for real estate and 90% for equipment.
- Interest rate either fixed at the five-year U.S. Treasury Note Rate plus 2.5%, or variable at Prime minus .5%.
- Loan terms of up to five years for machinery and equipment (with up to 10-year amortization) and up to five years for owner–occupied real estate purchases (up to 20-year amortization).
- Preference is given to borrowers located in targeted geographies throughout the State of New Jersey, and in targeted industries such as manufacturing, business/personal services, technology drivers, transportation and wholesale trade.
- Application fee: $1,000
- Commitment Fee: $750
- Extension: $750
- Guarantee: 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.)
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.