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CDFI LOAN TO LENDER PROGRAM


FOR QUALIFIED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS (CDFIs) ONLY

NJEDA provides financing to qualified Community Development Financial Institutions (CDFIs), for the purposes of administering term loans or lines of credit to qualified micro-enterprises and small businesses, some of which may not be able to secure traditional bank financing. The NJEDA want to ensure that New Jersey businesses have the resources necessary to expand and that our communities have a healthy climate for growth. That’s why we are partnering with Community Development Financial Institutions (CDFIs), who routinely work with micro-enterprises and small businesses not qualified for traditional bank financing.


CDFIs can use NJEDA funding to provide term loans or lines of credit to qualified businesses. NJEDA funding cannot be used to restructure or refinance existing debt.


PROGRAM DETAILS

NJEDA can provide financing to qualified Community Development Financial Institutions (CDFIs), for the purposes of administering term loans or lines of credit to qualified micro-enterprises and small businesses, some of which may not be able to secure traditional bank financing.

ELIGIBILTY

CDFIs looking to qualify for an NJEDA loan through the CDFI Loan to Lender Program must:

  • Be an experienced CDFI with a minimum of 5 years demonstrated lending and portfolio management history.
  • CDFIs can use NJEDA funding to provide term loans or lines of credit to qualified businesses. NJEDA funding cannot be used to restructure or refinance existing debt.
  • Premier CDFIs cannot use Loan to Lender funding to finance requests through the Premier CDFI Program.

* Other credit criteria apply


INTEREST RATES

20 year term
Interest Rate: •​Years 0-2: 0%
Years 3-7 (Interest Only): 2%
Years 8-20 Fully amortized w/ quarterly payments P&I payments): 2%

FEES

Application Fee: $1,000
Commitment Fee: 0.875% of the loan amount
Closing Fee: 0.875% of the loan amount * All fees are non-refundable

CDFIs with a successful history of lending and portfolio management may be considered for funding through the CDFI Loan to Lender Program.

The NJEDA will request the following information for consideration of approval under Loan to Lender:

  • Bylaws and Articles of Incorporation
  • List of the Board of Directors and their professional affiliations
  • Organizational chart with description of staff positions
  • Listing of key personnel with resumes
  • Most recent 3 years financial statements (audited, if available)
  • Interim P&L and balance sheet
  • List of operating revenue sources (including restrictions on amounts, conditions, etc)
  • List of local and private sector support (if applicable)
  • Ongoing funding commitments (if applicable)
  • Lending and risk management policies (including underwriting criteria and loan monitoring procedures)
  • Product description(s) (including rates, terms and allowable uses of loan proceeds) for program(s) that funding will be utilized for
  • Cash/investment management policy
  • Sample loan documents (including application, loan agreement, and promissory note)
  • Current portfolio status report and risk analysis (including aging or portfolio) 15. Tax Clearance Certificate

PROGRAM GUIDE

For more information contact

Ken Hart
Small Business Liaison Officer
Khart@njeda.com
609-858-6661

QUESTIONS

For more information or to ask a specific question please send an email to customercare@njeda.com and a team member will reach out to you.

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