Financing & Incentives - Urban Redevelopment

The New Jersey Economic Development Authority (EDA) offers powerful resources to spur economic development and self-sufficiency in New Jersey’s urban areas. With lower borrowing costs and the capability of bridging financing gaps for municipalities, developers, businesses, and community groups in urban areas, the EDA is a flexible and effective business partner.

Some examples of the types of projects the EDA can assist include:

  • Infrastructure development
  • Utilities
  • Demolition
  • Brownfield remediation
  • Community centers and gardens
  • Streetscape and signage
  • Facade restoration
  • Landscape amenities

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

Why Do You 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
  • Grants and loans for brownfields investigation and cleanup
  • Loans up to $2, $3, or $10 million with favorable rates to businesses in specific urban areas
  • Tax-exempt bond financing, starting at $500,000
  • Loans and guarantees of up to $500,000 to urban-based community organizations that, in turn, 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 attract businesses to move to or start up in a low income community
  • Tax credits issued to investors to ensure a return on investment
  • Below-market equity investment capital, commercial loans for businesses and developers
To refurbish or restore a contaminated area to a marketable condition
  • Loans, grants, and matching grants to public, private, and not-for-profit entities for the investigation and/or remediation of known or suspected contaminated sites
To boost commercial real estate development
  • Short-term financing and loan guarantees of up to $1 million for pre-development site preparation (non-contamination related), including land assemblage, demolition, removal of debris and engineering costs
To make it attractive and affordable for businesses to move into or start up in our area
  • Incentive grants for companies creating at least 25 new jobs in New Jersey (10 if in targeted 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 urban redevelopment, click here.