IF YOU ARE: A creditworthy small, minority-owned or women-owned business in New Jersey in operation for at least one year or not-for-profit corporation in operation for at least three full years.
YOU MAY QUALIFY FOR: Small Businesses - Up to $300,000 for credit scores greater than or equal to 700; Up to $125,000 for credit scores greater than or equal to 650. Not-for-Profits: Up to $300,000 with 1.10 debt service coverage ratio (DSCR).
TO BE USED FOR: Fixed assets and working capital
PROGRAM DETAILS: An expedited approval process helps the Small Business Fund program provide below-market rate financing to applicable businesses through direct loans or guarantees, with the choice of a variable or fixed interest rate.
Currently, the interest rate for this program is based on the 5-Year United States Treasury (for fixed rate loans) and Prime (for variable rate loans).
As of April 1, 2010, the base rate will be the 5-Year United States Treasury plus 100 basis points (for fixed rate loans) and Prime minus 150 basis points (for variable rate loans). Additionally, a new interest rate pricing model will be implemented, which will include criteria that will adjust the rate offered on fixed and variable rate loans based on the applicant's creditworthiness, public policy and amortization. The interest rate floor for the program is 3.00%.
FEES*:
- Application fee: $300
- Commitment fee: 0.5% of the loan amount
- Closing fee: 0.5% of the loan amount
- Guarantee fee: due at closing, if applicable
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.