How do I get a grant to start a business?
The concept of “grant/free money” from the state government or federal government does not exist. However, the New Jersey Economic Development Authority (EDA) offers low interest rate loans to small and mid size business that meet the EDA’s qualifications.

Does the EDA provide financing for working capital or debt consolidation?
The EDA reviews/considers these type of financial requests. The EDA will review your proposal to know where you obtained the loan, what was the original loan amount, the approximate balance and how the money was used. The EDA will also look at the public purpose and the credit worthiness of the company. The financial request will have to meet EDA’s qualifications.

What is the EDA’s interest rate?
The EDA’s interest rate is generally 1% below the bank rate. The interest rate is determined by a number of variables, such as, type of industry, project location, and job creation. The EDA can offer a fixed rate and a floating rate.

What is the maximum amount of money I can borrow?
The EDA will need to know what are your total project costs? How much equity can you put into the company and over what time period will this money help the company? What you are using the money for?

Does my business have to be located in a targeted area or be a targeted business (such as manufacturing) to qualify for funding through the EDA?
The EDA reviews each business plan/proposal on a case-by-case basis. The EDA needs to know the answers to the following questions: Nature of the business --- Startup or existing? Where your business will be located? The type of business? What is the total project cost? How will the money be used? How many employees do you currently have? The number of anticipated employees within two years? How you plan to obtain other sources of funding? These responses should be addressed throughout your business plan.

Can the EDA partner with my bank or any other credit provider?
Yes, the EDA can partner with a bank or credit provider to help the business owner possibly achieve a blended interest rate.

Does the EDA provide financing for my business located outside of NJ?
No, the business must be located in New Jersey in order to qualify for any of EDA resources.

How do I register my business?
To register a business in the State of New Jersey, as a small, minority-owned, or women-owned, contact the New Jersey Division of Minority and Women Business Development at (609) 292-2146 or go to: http://www.nj.gov/njbusiness/contracting/.

Where do I go to get help to write a business plan?
For help writing a business plan, click here.

Do I qualify for a grant or low interest loan since I am a woman, minority or have a small business?
Each business plan or proposal is viewed on a case-by-case basis. The responses to the following questions should be addressed in your business plan:

• Nature of the business: Start up or existing?
• Where your business will be located?
• The type of business?
• What is the total project costs?
• How will the money be used?
• The number of employees currently employed?
• The number of anticipated employees within two years?
• How you plan to obtain other sources of funding?

These responses should be addressed throughout your business plan.

What is tax-exempt bond financing and who can use it?
Interest income earned by purchasers of tax-exempt bonds is exempt from both federal and state income taxes. These savings are passed on to borrowers in the form of below-market interest rates.

Qualified borrowers or uses include:

• Manufacturing facilities
• Governmentally owned public airports, docks and wharfs
• Water and sewer services, sewage disposal facilities, solid waste disposal facilities, electric and gas furnishing facilities and qualified hazardous waste facilities
• Certain not-for-profit 501(c)(3) entities, including service
organizations, educational institutions and health care facilities
• Commercial and industrial projects located in federally designated Empowerment Zones or Enterprise Communities.
• Certain assisted living facilities, which qualify as residential rental projects
• Municipal governments and other governmental entities