New Jersey Economic Development Authority - Financing Programs

Financing Programs - Urban Plus

IF YOU ARE: A community or economic development project, or a qualified New Jersey-based business located in an endorsed municipality.

YOU CAN APPLY FOR: Financing via loans under the Urban Plus program.

IN THE AMOUNT OF: Up to $3 million.

TO BE USED FOR: Fixed assets.

BENEFITS: Qualified companies can receive loans from the EDA with a below-market interest rate.

PROGRAM DETAILS: Urban Plus provides financial support to community and economic development projects, manufacturers, redevelopers and not-for-profit organizations in the following endorsed New Jersey municipalities: Camden, Trenton, Newark, Jersey City, Paterson, Elizabeth, East Orange, New Brunswick, and Atlantic City. Eligible companies must have documented support of the municipality, and possess fixed-asset collateral such as real estate and/or equipment. Funding provided by the EDA must be used to create or maintain jobs, increase ratables, or leverage public financing by a ratio at least 1:1.

Currently, the interest rate for this program is based on the Federal Reserve Discount Rate.

As of April 1, 2010, the base rate will be the 5-Year United States Treasury (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: $1,000
Commitment fee: 0.875% of loan amount
Closing fee: 0.875% of loan amount

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.

Success Stories

IP System 3

Waterfront Technology Center at Camden tenant IP System 3 has formed a strategic partnership with the Camden-based Rutgers Institute for Management and Executive Development to deliver a new Project Management Dual Certificate Program. The collaboration is a prime example of what the New Jersey Economic Development Authority’s Waterfront Tech Center, and the Camden Innovation Zone as a whole, were established to support. read more

Bonds

The EDA issues conduit tax-exempt private activity bonds, the proceeds of which are used to provide low-interest, fixed-asset loans. Borrowers must meet the eligibility requirements outlined in the Internal Revenue Code (IRC) in order to qualify. Taxable bonds are also available for a wide variety of businesses. Taxable bonds offer similar flexibility in structuring rates and terms but are not subject to the restrictions placed on tax-exempt financing under the IRC. Click here for more information.