EDA APPROVES ASSISTANCE TO BOLSTER TECHNOLOGY INDUSTRY IN NEW JERSEY
TRENTON (Nov. 10, 2014) – Furthering the Christie Administration’s commitment to bolstering the State’s technology industry, the New Jersey Economic Development Authority (EDA) today announced that technology companies across the State were approved for assistance through the various programs available to grow this critical sector of New Jersey’s economy.
“Strengthening the technology industry in New Jersey remains a top priority of the State and the EDA,” said CEO Michele Brown. “We’re pleased to offer a continuum of assistance to support these innovative and dynamic companies throughout their life cycle.”
At today’s Board meeting, the EDA approved a $400,000 Edison Innovation VC Growth Fund loan for Phone.com, a cloud-based telecommunications company located at NJIT’s Enterprise Development Center in Newark. The company will use the loan to support growth capital needs, including marketing and product development. Phone.com has received various awards, and was most recently recognized in the Inc. 500/5,000 list and Deloitte Technology’s Fast 500. The company, which also benefited from an Edison Innovation VC Growth Fund loan in 2013, expects to expand its workforce to 16 employees within the coming years.
Launched in 2011, the Edison Innovation VC Growth Fund supports venture capital supported technology companies with minimum trailing 12 month commercial revenues of $500,000. Up to $1 million in subordinated convertible debt financing is available to support growth capital needs, including key hires, product rollout, product enhancement, and marketing/sales. There is a 1:1 VC match funding requirement.
An Angel Investor Tax Credit investment was also approved to support Eos Energy Storage LLC, an Edison-based company that develops novel, low-cost energy storage solutions for the electric utility and transportation industries. To date in 2014, 32 investments have been approved under the Angel Investor Tax Credit Program, representing the injection of nearly $12 million of capital into New Jersey emerging technology and life sciences companies.
Signed into law by Governor Christie in January 2013, the program provides credits against New Jersey corporation business or gross income tax for 10 percent of a qualified investment in an emerging technology business with a physical presence in New Jersey and that conducts research, manufacturing, or technology commercialization in the state.
In other Board action, tax credits of up to $7.45 million over ten years were approved through the Grow New Jersey Assistance Program to support Diogenix Inc. The molecular diagnostics company is considering moving a small laboratory from Maryland to the City of Camden in order to expand and transform it into a federally-compliant and accredited facility. The project would involve the creation of an estimated 71 new jobs in the State.
Additionally, through the Clean Energy Manufacturing Fund (CEMF), assistance was recently approved for two other New Jersey-based technology companies – ENER-G Rudox, Inc. and SIEL America, Inc. Together, these companies anticipate the creation of more than 30 new jobs.
ENER-G Rudox, which develops, delivers and finances sustainable energy solutions and technologies for the North American market, was approved for up to $3.3 million. The funding will help the company create an advanced manufacturing facility for cogeneration and energy efficient systems in East Rutherford. SIEL America, a Parsippany-based manufacturer of grid-tied and photovoltaic inverters, was approved for $500,000 to support working capital needs.
A joint program of the EDA and the New Jersey Board of Public Utilities, CEMF allows New Jersey clean technology manufacturers to receive funding under two separate components: project assessment and design, and project construction and operation. In total, a qualified manufacturer of Class I renewable energy or energy efficiency systems, products or technologies may be eligible to receive up to $3.3 million in grants and loans. Up to $300,000 is available as a grant to assist with the manufacturing site identification and procurement, design, and permits. Up to $3 million is available as a ten-year loan to support site improvements, equipment purchases, and facility construction and completion.
For additional information about the EDA’s support of the technology industry, follow us on Twitter and LinkedIn @NJEDATech. To learn more about opportunities for business growth throughout New Jersey, visit the State’s business portal at www.NewJerseyBusiness.gov