Financing Programs - Main Street Business Assistance Program
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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 $250,000).

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

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

PROGRAM DETAILS:

  • Minimal credit score of 680 for at least one of the guarantors.
  • Interest rate on EDA loan participation is 5% fixed with a maximum term of 5 years.
  • 1.1X debt service coverage ratio.
  • Loan-to-value not to exceed 100%.
  • Collateral required for participations and guarantees.  The EDA’s collateral position is subordinate to the bank for participations, and equivalent to the bank for guarantees.
  • Originating bank must be an approved lender with the EDA for loan participations.
  • Direct loans available to supplement bank financing.
  • Lines of credit guarantees are available through EDA Preferred 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.

FEES*:

  • Application fee: $1,000 
  • Commitment fee for bank participations: $750
  • Commitment fee for direct loans: .875% of loan amount
  • Closing fee for direct loans: .875% of loan amount
  • Guarantee fee: 0.5% of guarantee amount multiplied by the number of years of the guarantee
  • 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 800-537-7397 or email MainSt@njeda.com .

*All fees are non-refundable.