Financing & Incentives - Municipal Redevelopment

The New Jersey Economic Development Authority (EDA) has combined innovative financing approaches and real estate development expertise to assist New Jersey municipalities at various stages of the redevelopment process. As a driving force in encouraging community investment and Smart Growth development, the EDA provides low-interest financing, incentive grants, novel tax structures, loans, and grants to make your redevelopment project easier and more affordable.

The EDA can assist with:

  • Planning and predevelopment
  • Investigation and remediation of brownfield sites
  • Infrastructure development
  • Building acquisition, construction, and renovations
  • Business attraction and expansion

So, whether you are a municipality wanting to clean up an abandoned gas station, a developer planning to build an office complex on a contaminated site, or a business looking to expand on an adjacent property that could have environmental issues, the EDA may be able to help.

Why Does Your Municipality Need Financing? Here’s What the EDA Can Offer*:
To build or renovate a building, or construct a new building
  • Loans up to $750,000; loan guarantees up to $1.5 million
  • Grants and loans for brownfields and portfields investigation and cleanup
  • Tax-exempt bond financing, starting at $500,000
To encourage community growth of an urban area in need of reinvigoration
  • Loans up to $750,000; loan guarantees up to $1.5 million
  • Grants and loans for brownfields and portfields investigation and cleanup
  • 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)
  • Tax-exempt bond financing, starting at $500,000
  • Loans and guarantees of up to $500,000 to urban-based community organizations that make loans to micro-enterprises that don’t qualify for traditional bank financing
  • Funding for up to $50,000 for feasibility studies for real estate development projects
To refurbish or restore a contaminated area to a marketable condition
  • Loans, grants, and matching grants for the investigation and/or remediation of known or suspected contaminated sites
To make it attractive and affordable for businesses to move into or start up in our municipality
  • Tax-incentives for companies creating at least 25 new jobs in New Jersey (10 if in the technology or biotechnology industries)
  • Tax-exempt bond financing, starting at $500,000

*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 municipal redevelopment, click here.