BRIDGEPORT-BASED IMTEK, LLC FINALIZES EDA ASSISTANCE
Main Street Program to help small services business grow in New Jersey
Trenton, N.J. (August 31, 2009) – The New Jersey Economic Development Authority (EDA) has finalized assistance to support Bridgeport-based Imtek, LLC under the Main Street Business Assistance Program established by Governor Jon S. Corzine and the state Legislature. Designed to help businesses cope with the effects of the national economic downturn, the program enables qualified small and mid-size businesses and nonprofit organizations in New Jersey to access capital by providing state support for bank lending through loan participations and credit enhancements.
“The Main Street initiative was created to help small companies like Imtek remain and grow in New Jersey,” said Governor Corzine. “This program is one of several critical initiatives advanced under the Economic Assistance and Recovery Plan to aid businesses during these challenging times. I am pleased to see that our efforts are working to help ensure companies in New Jersey continue to thrive.”
Imtek, established more than 60 years ago, provides direct marketing, printing, fulfillment and location intelligence services to clients in the retail, automotive, financial services, travel, catalog, education, publishing and healthcare industries. The company received a $300,000 line of credit from Cornerstone Bank, backed by a 50-percent EDA guarantee and a $300,000 term loan from Cornerstone with a 25-percent EDA participation and a 25-percent EDA guarantee to refinance existing debt. Imtek will maintain its 19 employees and expects to create six new jobs over the next two years.
“We were impressed by the speed of the process, from application to approval, as well as the level of professionalism demonstrated by the EDA staff. With the help of the Main Street program, we were able to put a financing structure in place that allows us to grow in New Jersey with our innovative technology,” said David Lesniak, president of Imtek.
Developed in partnership with the New Jersey departments of Banking and Insurance and Treasury, the New Jersey Bankers Association and others in the banking community, the Main Street program has been funded by a $50-million state appropriation. The program has two components – a loan participation and/or guarantee product that is being offered through participating banks and a line of credit guarantee offered for the first time through the EDA’s 15 Preferred Lender partners. To qualify, borrowers must be in business at least two years, maintain jobs in New Jersey and meet other EDA eligibility requirements.
“We are very pleased to have Imtek join Cornerstone Bank. Our partnership with the EDA under the Main Street program was key for us to provide Imtek with a comprehensive financing structure that will support its plans to grow and add jobs in southern New Jersey,” said Amy E. Travetti, vice president, Cornerstone Bank.
For term loans secured by fixed assets like buildings and equipment, the EDA will provide a maximum participation of 25 percent, or $1 million, in a bank loan and a maximum bank loan guarantee of 50 percent, up to $2 million. For working capital loans to cover operating expenses, the EDA will provide up to 25 percent of a bank loan, not to exceed $750,000, and a maximum guarantee of 50 percent, up to $1.5 million. The aggregate EDA exposure cannot exceed 50 percent of the total bank loan amount to a total maximum of $2 million. The interest rate on EDA loan participations is fixed at 5 percent for a maximum of five years. Borrowers also can use the Main Street program to refinance higher-interest debt.
The line of credit guarantee, which can be used for fixed assets or working capital, is set at a maximum of 50 percent of the bank amount, up to a maximum of $250,000.
Applications and program details for the Main Street program is available online at www.njeda.com . For more information on the Main Street Business Assistance Program, you also may call 1-(800) 537-7397 or e-mail MainSt@njeda.com .
More information on Imtek can be found online at www.Imtek.com or by calling 1-(800) 767-6277.