Financing Programs - Main Street Business Assistance Program

Please click here for information on Hurricane Sandy Disaster Relief Through the New Jersey Main Street Business Assistance Program.

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

This program provides financial support to commercial banks in New Jersey to provide financial assistance to small and mid-sized businesses and not-for-profit organizations with projects in New Jersey.  The Main Street Business Assistance Program can provide direct loans, bank term loan participations and/or guarantees and line of credit guarantees. 

IF YOU ARE: A small or mid-sized business or not-for-profit organization in operation in New Jersey for at least two years and need financing. 

AVAILABLE ASSISTANCE*:

  • Direct loans/Loan participations up to 25% of the total financing (not to exceed $1 million for fixed assets and $750,000 for working capital).
  • Loan guarantees up to 50% of a bank loan (not to exceed $2 million for fixed assets and $1.5 million for working capital).
  • Line of credit guarantees up to 50% of the line of credit amount, not to exceed $500,000. 

Total EDA exposure under the Main Street program not to exceed 50% up to a maximum of $2 million. 

TO BE USED FOR:
Fixed assets, refinancing of debt, or working capital.
 
BENEFITS: Reduced credit risk for the bank and access to capital for the borrower.

PROGRAM DETAILS:

  • Originating bank must be an approved lender with the EDA for loan participations.
  • Direct loans are available to supplement bank financing.
  • Lines of credit guarantees are available through EDA Premier Lenders only.
  • Company must be in good standing with EDA, Federal/State agencies, and requesting bank.
  • Company must have no criminal history for owners, business, or guarantors.
  • Minimal credit score of 680 for at least one of the guarantors.
  • 1.1X Debt Service Coverage Ratio. 
  • Loan-to-value not to exceed 100%.
  • Interest rate on EDA direct loans and loan participations under Main Street Business Assistance Program is 5 year US Treasury plus 300 basis points with a 3% floor, fixed at closing, with a maximum term of 5 years.

FEES*:

  • Application fee: $1,000 
  • Commitment fee for loan participations and line of credit guarantees: $750
  • Commitment fee for direct loans: .875% of loan amount
  • Closing fee for direct loans: .875% of loan amount
  • 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.)
  • Commitment extension: $750

Division of Taxation Tax Clearance Certificate Application Processing Fee: $75 for standard processing; $200 for expedited processing (response within three business days)  

For more information on the Main Street Business Assistance Program, call 866-534-7789 or email MainSt@njeda.com.

*All fees are non-refundable.