New Jersey Economic Development Authority - Financing & Incentives

Financing & Incentives - Technology & Life Sciences

The New Jersey Economic Development Authority (EDA) is committed to nurturing the development of new technologies and ensuring that the State continues to be a leader in innovation. That’s why we offer a full range of programs and services to fuel the continuing growth of core industries vital to the State’s economy, including:

Technology
Life sciences
Clean energy
Information and communication technologies

So, whether you are an early-stage company, a research and development firm, a manufacturer, a service provider or other established life sciences or technology business, the EDA has the financing, real estate development and technical assistance tools to meet your specialized needs.

Our efforts can provide businesses like yours with low-interest financing through bonds, loan participations/guarantees, grants, and tax incentives.

Depending on your business goals, the EDA may have a financial solution that can work for you.

What’s Your Business Financing Goal?	What Your Company Looks Like	Options That May Be Available
To lease office space within New Jersey	A startup looking for an 800 square foot (minimum) lot A major company looking to lease up to 100,000 square feet	Business Employment Incentive Plan (BEIP). Edison Innovation Zones Technology Centers in Edison Innovation Zones
To find or build a new home in New Jersey for my business.	A mature company with cash flow to support debt service	Business Employment Incentive Plan (BEIP) Tax Exempt Bonds Edison Innovation Zones Technology Centers in Edison Innovation Zones
To raise "less-dilutive" funding for my company (which has NOT YET reached a proof of concept stage)	Organized as a C corporation or an LLC Has proprietary, protected intellectual property Will add 10 high-paying jobs or has 75% of its employees in New Jersey Willing and able to create high-skill, high-paying jobs in New Jersey A full time management team with industry experience Founders with financial investment in the company The ability and willingness to leverage other sources of financing	The Edison Innovation Commercialization Fund. Tax Certificate Transfer (with 75% of consolidated W-2 workers located in NJ)
To raise "less-dilutive" funding for my company (which HAS reached a proof of concept stage)	Organized as a C corporation or an LLC Will add 10 high-paying jobs or has 75% of its employees in New Jersey Has proprietary, protected intellectual property Willing and able to create high-skill, high-paying jobs in New Jersey A full time management team with industry and business experience Founders with financial investment in the company Has independent, positive third party technology and beta reference Has a 1:1 "fresh" matching funds (those received 90 days prior to application date)	The Edison Innovation Growth Fund Tax Certificate Transfer (with 75% of consolidated W-2 workers located in NJ)
To finance manufacturing equipment with a lower cost of funds	A technology or life science manufacturer with less than $20 million in capital expenditures in the past 3 years A commercially financable company with a relationship with a financial institution that is willing to purchase bonds	Tax Exempt Bond Funding
To build my business by adding employees (at least 10)	A business needing to make a real estate decision on where to grow jobs	Business Employment Incentive Plan (BEIP)

Product Fees and Interest Rate Pricing:

The EDA charges application and processing fees for its products, details of which are captured in the individual product information pages found on our website.

For its loan products, the EDA also charges a fixed or variable interest rate that has an interest rate floor for the specific product, and which is determined for individual loans at the time of closing using various other criteria. Interest rate floors utilize nationally recognized financial indices such as the 5 Year United States Treasury or the Prime Rate as published in the Wall Street Journal. For fixed and variable rates loans, adjustments will be made to the base rate and are calculated based on factors that involve the applicant's creditworthiness, project public policy criteria, including number of jobs to be created and the leveraging of total project costs to public dollars, and amortization. Please refer to product information pages for current interest rate floors.

To learn more about the EDA’s offerings for technology and life science companies, click here.

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.