Financing & Incentives - Not-for-Profit Organizations

The EDA can assist your not-for-profit organization in a number of ways, including:

  • Financing for land and building acquisition, building construction, equipment, furniture and fixtures, renovations and leasehold improvements
  • Refinancing of existing, higher-interest conventional debt
  • Access to capital and other state resources to meet expansion and program needs
  • Pre-development loans for feasibility and related planning studies as well as engineering, architectural, land assembly, site improvement and other costs associated with development projects
  • Access to technical assistance

 

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



Why Does Your Not-for-Profit Need Financing? Here’s What the EDA Can Offer*:
To obtain working capital
  • Loans up to $750,000; loan guarantees up to $1.5 million for a total EDA exposure of $2.25 million
  • Tax-exempt bond financing, starting at $500,000, for 501(c)(3) not-for-profits
To purchase, construct, or renovate a building to accommodate my organization’s 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
  • Tax-exempt bond financing, starting at $500,000, for 501(c)(3) not-for-profits
  • Up to $50,000 for feasibility studies and other pre-development costs to determine the viability of a real estate project
  • Up to $750,000 for the development of community facilities or other real estate economic development projects, including associated environmental remediation costs
To buy or renovate furniture, fixtures, and equipment for my organization
  • Loans up to $1.25 million; loan guarantees up to $1.5 million for a total EDA exposure of $2.75 million
  • Tax-exempt bond financing, starting at $500,000, for 501(c)(3) not-for-profits
To grow my organization located in an urban municipality
  • Loans of up to $2 million for fixed assets to organizations in one of New Jersey’s urban areas
  • Loans of up to $3 million with favorable rates for fixed assets to organizations in one of New Jersey’s nine designated urban areas (Atlantic City, Camden, East Orange, Elizabeth, Jersey City, Newark, New Brunswick, Paterson, Trenton)
  • Tax-exempt bond financing, starting at $500,000, for 501(c)(3) not-for-profits
To learn about tools that will help grow my organization or get a better understanding of how to run my organization more efficiently
  • Access to entrepreneurial and technical training

*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 not-for-profit organizations, click here.