New Jersey businesses in need of financing and committed to job creation/ retention may be eligible for Direct loans through the NJEDA when conventional financing is not available.

Direct loans are one solution in the NJEDA’s portfolio of programs designed to increase access to capital and support the growth of small businesses in New Jersey.


New Jersey businesses in need of financing and committed to job creation/retention may be eligible for direct loans through EDA when financing is not available under other EDA financing programs.

Up to $2 million for fixed assets*, or up to $750,000 for working capital to be used for fixed assets or working capital

Direct Loans offer companies lower interest rates, longer terms, and a fixed rate.

EDA direct loans provide the following terms: Up to 5 years for working capital, up to 10 years for new equipment and 5 years for used equipment, and 20 years for real estate transactions.

The base rate is the 5-Year United States Treasury or 2%, whichever is higher. The base rate will be adjusted based upon the applicant’s creditworthiness.

* Pursuant to P.L.2017, c.261, direct loans of up to $3 million may be available to qualified businesses in targeted urban centers, regional centers, and metropolitan planning areas.


  • To be eligible for the program, the borrower must create or maintain one job for every $65,000 of EDA assistance. of NJEDA exposure within two years.
  • 1.1x debt service coverage ratio; 1.0x debt service coverage for non-profits.
  • Be in operation for at least 2 years.
  • Must be able to provide fixed assets (e.g. real property and machinery/equipment).
  • Homebased business are ineligible.

* Other credit criteria may apply


Based on the 5-year US Treasury or floor of 1%, whichever is higher, with basis point additions for credit risk.


  • Application fee: $1,000
  • Commitment fee: 0.875% of loan amount
  • Closing fee: 0.875% of loan amount

** All fees are non-refundable


Division of Taxation Tax Clearance Certificate required.  Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.

  • Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance.
  • If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the Business Incentive Tax Clearance can be printed directly through PBS.

It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate.  If a current and clear certificate is not evidenced to NJEDA at time of closing, NJEDA will not proceed with closing.


Projects utilizing NJEDA financial assistance for construction related costs are subject to state prevailing wage requirements.
Effective April 1, 2020 all construction contracts in which prevailing wage applies must provide proof of valid NJ Department of Labor Construction Registration Certification. Please email if you have any questions about this requirement. Please be advised that a valid Contractor Registration Certificate is required to perform construction on this NJEDA financially assisted project.



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

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