Home > Financing and Incentives > Premier Lender Program
  • Print
  • Send to email

Premier Lender Program

  • Dollar Amount

    Up to $2 million loan participation or $1.5 million loan guarantee for fixed assets

    Up to $750,000 loan participation or $1.5 million loan guarantee for term working capital.

    Up to $750,000 line of credit guarantee.

  • Uses

    Fixed assets or term working capital.

  • Benefits

    For small businesses,
    Lower cost financing

    For participating banks,
    Faster turnaround and reduced risk

  • Eligibility

    Must commit to create or retain one new full-time job for every $65,000 in EDA exposure within two years

    1.1X Debt Service Coverage Ratio for Small Businesses; 1.0X Debt Service Coverage for Not-for-Profits

    100% loan-to-value
    for real estate
    and 90% for equipment

Para ver esta información en español, haga clic aquí

The New Jersey Economic Development Authority (NJEDA) wants 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 partner with banks to overcome the financial obstacles that can stall the growth and expansion of New Jersey-based businesses and not-for-profit organizations.

The Premier Lender Program Creates a Win-Win Opportunity for Businesses and Participating Lenders:

Benefits for Businesses / Not-for-Profit Organizations:

  • Access to low-cost financing that includes NJEDA loan participation and/or guarantees, and line of credit guarantees.
  • Financing can be used for fixed assets or term working capital.
  • Attractive interest rates and terms.

“The financing enabled us not only to quadruple our space, but to also hire additional mechanics. We now have the capacity to seamlessly support more and larger clients.”

- Dennis Galloway, Owner
  DG and Sons (Rochelle Park, NJ)

“The funding provided has been pivotal to our efforts to bring our manufacturing in-house, affording us greater control over production and creating skilled jobs here in New Jersey. Our new capabilities will enable us to be more efficient and more responsive to our clients.”

- David Ronner, CEO
  ICF Mercantile (Warren, NJ)

Benefits for Participating Lenders:

Provides lenders with more flexibility by reducing the lender’s overall exposure.

  • Faster turnaround on requests including:
    • Approval or rejection of applications in 10 business days.
    • Written commitment letter issued within two days of approval.
    • Upon notice, closing may occur within three business days.

“NJEDA helps make things happen. There are lots of good businesses that are short on capital. With the help of the NJEDA, we can bridge the gap so businesses can retain liquidity with lower equity requirements.”

- Mark Noto, Senior Vice President, Investors Bank
Source: NJ Business Magazine

(Participation in NJEDA’s Premier Lender Program allows Valley National Bank to make loans it normally couldn’t consider based on collateral requirements.) “We can be more creative on loan structure, capital and liquidity issues. That helps companies that want to expand focus on productivity and growth, not just capital needs.”

- Jim Trouwborst, Senior Vice President, Valley National Bank
Source: NJ Business Magazine

Click here for a list of participating NJEDA Premier Lenders.

Program Details:

In partnership with NJEDA Premier Lender banks, NJEDA can provide the following loan participations/guarantees and line of credit guarantees:

  • Up to 50% of the bank loan amount for fixed asset loans; maximum NJEDA participation of $2,000,000; maximum NJEDA guarantee of $1,500,000; total NJEDA exposure not to exceed $2,750,000.
  • Up to 50% of the bank loan amount for working capital loans; maximum NJEDA participation of $750,000; maximum NJEDA guarantee of $1,500,000; total NJEDA exposure not to exceed $2,250,000.
  • Guarantee of up to 50% of the bank line of credit amount; not to exceed $750,000.

Eligibility Requirements:

Business applicants looking to qualify for a loan from a Premier Lender must*:
  • Be in operation for at least two full years.
  • Commit to creation or retention of one new, full-time job for every $65,000 of NJEDA exposure within two years.
  • 1.1X Debt Service Coverage Ratio (for businesses); 1.0X Debt Service Coverage Ratio (for not-for-profits).
  • 100% loan-to-value for real estate and 90% for equipment
* Other credit criteria apply
Interest Rates and Borrower Fees*:

Based on the 5-year US Treasury or floor of 2%, whichever is higher, with basis point additions for credit risk.
  • Application fee: $1,000.
  • Commitment fee: $750, payable at acceptance of term sheet.
  • Guarantee fee: Up to 0.5% sized to percentage guarantee required, not to exceed 0.5%. (For example, 25% guarantee will require a 0.25% fee, 50% guarantee will require a 0.5% fee.)

* 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.
Please note:  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 PWCR@dol.nj.gov 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.

To learn more about the Premier Lender program or other products and services, contact us today at 609-858-6767 or click here to have an NJEDA representative contact you.