Financing & Incentives - Small-Mid Sized Business

The New Jersey Economic Development Authority has always made it a priority to support business growth in New Jersey for businesses of all size, but small business has been a core focus.

We’re talking about companies with anywhere from 5 to 100 employees, that have been in business from 1 to 5 years. And we’re partial to business sectors critical to the State’s economy, especially

  • Women and minority-owned businesses
  • Technology and life sciences
  • Manufacturing
  • Logistics, including warehousing, distribution and port operations
  • Financial services
  • Arts, culture, and tourism
  • Retail

Our efforts can provide businesses like yours with low-interest financing through bonds, loan participations, loan guarantees and direct loans with your choice of variable or fixed interest rates. Best of all, the EDA can provide you with longer repayment schedules than those offered by traditional lenders.

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

Why Does Your Business Need Financing? Here’s What the EDA Can Offer*:
To cover my operating expenses
  • Loans up to $750,000; loan guarantees up to $1.5 million for a total EDA exposure of $2.25 million
To purchase or renovate a building, machinery or equipment to accommodate my business growth and expansion
  • Loans up to $1.25 million; loan guarantees up to $1.5 million for a total EDA exposure of $2.75 million
To grow my business located in an urban municipality
  • Loans of up to $2 million for fixed assets to businesses in one of New Jersey’s urban areas
  • Loans of up to $3 million with favorable rates for fixed assets to businesses in one of New Jersey’s nine designated urban areas (Atlantic City, Camden, East Orange, Elizabeth, Jersey City, Newark, New Brunswick, Paterson, Trenton)
To grow my business by adding employees
  • Incentive grants to businesses creating at least 25 new jobs in New Jersey (10 jobs if in the technology or biotechnology sectors)
For training that will help me start and grow my business or get a better understanding of how to run my business more efficiently
  • Access to entrepreneurial and technical training for new and aspiring business owners.

*All EDA offerings are subject to change, carry restrictions and require certain qualifications.

 

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 small to mid-sized businesses, click here.