EDA Announces First Loan Approval Under New Premier Lender Partnership with ConnectOne Bank
Financing will Fuel Relocation of Wholesaler OEM Source from Brooklyn to Union County
TRENTON, N.J. (September 21, 2018) – A recently-approved ConnectOne Bank loan with a New Jersey Economic Development Authority (EDA) participation will support the relocation of OEM Source, a wholesaler of electronic accessories, to the Garden State, the EDA announced today. The project marks the first time the EDA is participating in a ConnectOne Bank loan since the commercial bank joined the EDA’s growing list of Premier Lenders earlier this year.
Funding from the $2.97 million ConnectOne Bank loan, with a $1 million EDA participation, will enable OEM Source to purchase a 32,000-square-foot industrial building in Roselle Park to which it will relocate its operations from New York. OEM Source plans to consolidate its operations into the newly-purchased facility from its leased locations in Brooklyn, where it has been for more than a decade.
“The EDA’s partnerships with Premier Lender banks like ConnectOne are more important than ever as we work to align our offerings with the needs of small and mid-sized businesses in support of Governor Murphy’s vision for a stronger and fairer economy,” EDA Chief Executive Officer Tim Sullivan said. “The Premier Lender Program helps to extend our reach to more businesses like OEM Source to improve access to capital and fuel growth and job creation.”
Through the Premier Lender Program, the EDA can guarantee or participate in a portion of a Premier Lender’s commercial loans or lines of credit. Businesses can use this financing for fixed assets or term working capital. EDA’s involvement in the transaction provides access to lower cost financing for businesses and offers lenders greater flexibility by reducing their overall exposure.
“Together with the EDA, ConnectOne Bank offered us attractive financing options that will enable us to purchase the real estate we need,” said OEM Source General Manager Joseph Yusufov. “This loan allowed for a lower down payment and a more competitive interest rate, both of which will help to preserve precious capital.”
OEM Source plans to bring 70 existing jobs from Brooklyn and hire 10 new employees in the next two years.
ConnectOne Bank is a full-service commercial bank serving the New Jersey and New York markets. The bank was founded in 2005 by local business leaders to prove that putting people first is a better way to do business. The Bank serves small to mid-size business owners and consumers through its 22 locations and full suite of business, cash management and consumer banking products.
“We have long been committed to helping small businesses like OEM Source grow and spurring economic opportunities in our local communities,” said Elizabeth Magennis, Executive Vice President and Chief Lending Officer of ConnectOne Bank. “Our partnership with the EDA gives us the flexibility to support even more entrepreneurs whose needs go beyond traditional financing options.”
The Premier Lender Program offers loans with up to a $2 million EDA participation or $1.5 million guarantee for fixed assets or term working capital, and up to $750,000 participation or line of credit guarantee. The list of eligibility requirements and Premier Lender banks can be found at www.njeda.com/premierlender.
The EDA regularly partners with financial institutions, local organizations and other State agencies to help borrowers bridge financing gaps and increase their access to capital. This includes offering low-interest loans, bond financing for manufacturers and not-for-profit organizations, and technical assistance and training through EDA’s strategic partnership with UCEDC, a statewide, not-for-profit economic development corporation.
To learn more about EDA resources for small businesses, call EDA Customer Care at 609-858-6767 or visit https://www.njeda.com/small_midsize_business and follow @NewJerseyEDA on Facebook, Twitter and LinkedIn.