Paterson Manufacturer Growth
Continues With EDA Assistance
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Accurate Box and the New Jersey Economic Development Authority (EDA) have had a long-standing relationship. By accessing resources from the EDA 11 times over the last 28 years, including over $30 million in low-cost loans and bond financing, this Paterson-based manufacturer relocated and nearly doubled the square footage of its facility, and upgraded and purchased equipment.
Starting out as a local folding-carton manufacturer, the company has evolved into a corrugated box manufacturer specializing in custom full color litho-laminated boxes, custom displays and standees. With nationally recognized brand accounts and innovative manufacturing technology, Accurate Box has grown to 180 employees, many of whom are second generation Accurate Box workers.
The latest round of EDA financing involved a $3 million Urban Plus loan and a $7 million tax-exempt bond. The financing was used to purchase machinery and equipment (press, compressor, and laminator), make leasehold improvements and upgrade existing equipment.
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Lisa Hirsh,
President and CEO of Accurate Box
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EDA's Urban Plus program provides up to $3 million for projects in nine key urban centers of the state: Atlantic City, Camden, East Orange, Elizabeth, Jersey City, Newark, New Brunswick, Paterson and Trenton. It reinforces state support for re-energizing cities, enhances the viability of projects in these targeted urban areas and expands the resources available under the New Jersey Urban Fund.
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Urban Plus loans can be made for as long as 10 years with up to a 25-year amortization and be used for fixed assets like buildings and equipment. Loans can fund up to 50 percent of the total project costs and must have the support of the municipality. Projects must create or maintain jobs, increase ratables or leverage public financing by a ratio of 1:1. The interest rate is set at 50 percent of the Federal Reserve Discount Rate at the time of closing, with a floor of 2 percent.
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Like Accurate Box, certain New Jersey--based manufacturers qualify for tax-exempt bond financing. Starting at $500,000 and up to $10 million, interest rates on tax-exempt bonds are attractive and repayment schedules are typically longer than other traditional financing options.
For more information on the products and services of the EDA, visit our website at www.njeda.com or call (866)-534-7789.
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WE CAN HELP
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The EDA offers an array of resources designed to bring about economic growth through financing business creation and expansion and helping provide physical improvements to New Jersey's urban areas.
We work with municipalities, developers and community organizations to encourage investments in the state's urban and other communities by offering financing and real estate development expertise to:
- spur growth of businesses and nonprofit organizations
- promote the investigation and cleanup of brownfield sites
- foster smart growth redevelopment
Our financing programs include loans, loan guarantees, tax exempt and taxable bonds, and a variety of incentive programs that encourage relocation into urban areas and the creation of new jobs.
In carrying out our mission to support business growth and stimulate investment in urban communities throughout New Jersey, the EDA maintains key alliances and partnerships with the following organizations: New Jersey Redevelopment Authority, New Jersey Housing and Mortgage Finance Agency, New Jersey Department of Environmental Protection, New Jersey Department of Labor and Workforce Development, and New Jersey Board of Public Utilities.
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Recent Transactions
Boys & Girls Club of Camden County, Camden
The Boys & Girls Club of Camden County has issued a $2.2 million tax-exempt bond. The EDA's assistance will enable the organization to refinance existing debt with a cost savings of over $45,000 annually, based on a 10 year bond option. Six full-time jobs are projected to be added.
Selected Arrow Enterprises, Inc., Newark
A Fast Start for small business loan in the amount of $300,000 will assist Selected Arrow Enterprises, a full service oil company, in hiring six additional employees, creating marketing materials, and purchasing furniture.
ILS Grand LLC, Paterson
Looking to purchase Karlan Services, Inc. and all its assets, ILS Grand received assistance through an EDA direct loan in the amount of $615,000. The assistance will create 25 new employment opportunities in the state.
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