Financing Programs - Edison Innovation Fund

The Edison Innovation Fund seeks to develop, sustain, and grow technology and life sciences businesses that will lead to well-paying job opportunities for New Jersey residents. 

Financing under the following programs is subject to available funding:

  • Edison Innovation Green Growth Fund: Technology companies with Class I renewable energy or energy efficiency products or systems that have achieved "proof of concept" and successful independent beta results may be eligible for subordinated convertible debt financing up to $1 million to advance technologies in becoming competitive with traditional sources of electric generation.  There is a 1:1 match funding requirement that must be received by time of loan closing.

  • Edison Innovation Angel Growth Fund: Angel supported technology companies with minimum trailing 12 month commercial revenues of $500,000 may be eligible for up to $250,000 in subordinated convertible debt financing.  Growth capital through the Edison Innovation Angel Growth Fund can be used for key hires, product rollout, product enhancement, and marketing/sales.  There is a 2:1 angel match funding requirement that must be received within 90 days prior to application.

  • Edison Innovation VC Growth Fund: Venture capital (VC) supported technology companies with minimum trailing 12 month commercial revenues of $500,000 may be eligible for up to $1 million in subordinated convertible debt financing.  Growth capital through the Edison Innovation VC Growth Fund can be used for key hires, product rollout, product enhancement, and marketing/sales.  There is a 1:1 VC match funding requirement that must be received within 90 days prior to application.

  • Edison Innovation Growth Stars Fund: Angel and/or VC supported technology companies with minimum trailing 12 month commercial revenues of $2,000,000 may be eligible for up to $500,000 in subordinated convertible debt financing.  Growth capital through the Edison Innovation Growth Stars Fund can be use for key hires, product rollout, product enhancement, and marketing/sales.  There is a 1:1 match funding requirement that must be received within 90 days prior to application. 
     
  • Edison Innovation Clean Energy Manufacturing Fund:  Two separate program components offer up to $3.3 million as a grant and loan for New Jersey manufacturers of Class I renewable energy and energy efficiency technologies.  Up to $300,000 is available as a grant to assist with the manufacturing site identification and procurement, design, and permits.  Up to $3 million is available as a loan to support site improvements, equipment purchases, and facility construction and completion.  One-third of the loan may convert to a performance grant if certain business and technology-based milestones are met.

New Jersey also offers tax credit programs and job creation incentives to spur the growth of our State’s technology industry, including:

  • Technology Business Tax Certificate Transfer Program: Qualified biotechnology and technology companies may be eligible to sell unused net operating losses and R&D tax credits to unrelated profitable corporations for at least 80% of their value, up to a maximum lifetime benefit of $15 million.  To qualify, the applicant must have at least one full-time employee working in New Jersey if incorporated less than three years, five full-time employees in New Jersey if incorporated more than three years but less than five years, and 10 full-time employees in New Jersey if incorporated more than five years.  Please note eligibility requirements have been updated for 2010 and this description is not applicable to companies that have applied prior to 2010. 

  • Business Employment Incentive Program (BEIP): Companies seeking to relocate to or expand in New Jersey may be eligible for grants based on the number of new jobs created. By adding at least 10 jobs within two years, eligible technology or life sciences companies can be reimbursed for up to 80 percent of gross withholding tax paid by new employees for up to 10 years, to a maximum of $50,000 per employee over the course of the grant. Companies must demonstrate that the BEIP grant is a material factor in their decision to relocate to or expand in New Jersey.

Tax-Exempt Bonds, Loan and Guarantees

For manufacturers that are about to use their net income to service debt, the EDA may provide traditional financing options, including the issuance of tax-exempt bonds.

The EDA issues bonds for manufacturers to finance projects such as real estate acquisitions, machinery and equipment purchases, and for building construction and renovations.   Manufacturers can borrow from approximately $500,000 to $10 million. Terms range up to 10 years for equipment and up to 20 years for real estate.

As companies mature, the EDA can provide direct loans, or partner with banks and other lenders to provide loans and guarantees to sustain business growth.

Edison Innovation Zones

Edison Innovation Zones are “technology neighborhoods” established in Camden, the greater New Brunswick area and Newark where academic and research institutions can work collaboratively with companies to develop and market new products or services while enjoying certain financial incentives and other benefits. These zones offer state-of-the-art technology facilities and convenient access to some of the best researchers, technology companies and service providers in New Jersey.   And because they provide special benefits and financial incentives for resident businesses, Innovation Zones are also proving to be powerful economic engines for local economies. Technology and life sciences companies relocating within Edison Innovation Zones are eligible for enhanced financial benefits through the EDA.