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Access

Access is a pilot lending program that provides financing to small businesses in New Jersey - either in the form of direct loans through EDA, or through loan participations or guarantees in partnership with an EDA Premier Lender. 

Access is different from other EDA financing programs in that it provides greater flexibility to borrowers by placing greater emphasis on the borrower's cash flow and less emphasis on hard collateral.

  • Dollar Amount

    Loan participation or guarantee of up to $1 million for fixed assets or $500,000 for working capital.

    Direct loan of up to $500,000 for fixed assets or $250,000 for working capital

  • Uses

    Fixed assets or working capital.

  • Benefits

    Low cost financing

    More flexibility for borrower by placing greater emphasis on business cash flow and less emphasis on hard collateral

    Benefits for lenders include more flexibility by reducing the lender’s overall exposure, faster turnaround, and EDA subordinate lien position on collateral.

  • Eligibility

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

    1.25X Debt Service Coverage
    Ratio

    Loan to value may be greater than 90% on equipment and greater than 100% on real estate based on other underwriting factors.

Program Details:


Access is a pilot lending program that provides financing to small businesses in New Jersey - either in the form of direct loans through EDA, or through loan participations or guarantees in partnership with an EDA Premier Lenders.


In partnership with EDA Premier Lender banks, EDA can provide the following loan participations or guarantees:

  • Up to 50% of the bank loan amount for fixed asset loans; maximum EDA participation or guarantee of $1,000,000 with total EDA exposure not to exceed $1,500,000.
  • Up to 50% of the bank loan amount for working capital loans; maximum EDA participation or guarantee of $500,000 with total EDA exposure not to exceed $1,500,000.
EDA can also offer the following direct loans:
 
  • Up to $500,000 for fixed assets with total EDA exposure not to exceed $750,000
  • Up to $250,000 for working capital with total EDA exposure not to exceed $750,000


ELIGIBILITY REQUIREMENTS:


Business applicants looking to qualify for a loan from Access 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 EDA exposure within two years.
  • The average historical and global Debt Service Coverage Ratio over the past two years is at least 1.25x.
  • Collateral will be a lien on assets purchased for fixed financing and a lien on all business assets for working capital financing.
  • Loan to value may be greater than 100% for real estate and 90% for equipment based on other underwriting criteria.
  • FICO score of 50% of the personal guarantors must be 700.
* Other credit criteria apply
 


interest rates and borrower fees:

 

Interest rate is based on the 5-year US Treasury or floor of 2%, whichever is higher, with basis point additions for credit risk.

Borrower fees will utilize the appropriate existing EDA fee structure based on the structure of the financing being provided under Access.

For loan participations or guarantees of more than $500,000, in partnership with a Premier Lender, EDA will utilize the following Premier Lender Program fee structure:
 
  • 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.)

For direct loans of more than $500,000, EDA will utilize the following Direct Loan Program fee structure:
 
  • Application fee: $1,000
  • Commitment fee: 0.875% of loan amount
  • Closing fee: 0.875% of loan amount

For direct loans of $500,000 or less EDA will utilize the following Small Business Fund Program fee structure:
 
  • Application fee: $300
  • Commitment fee: 0.5% of the loan amount
  • Closing fee: 0.5% of the loan amount
  • 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.)
 

For loan participations or guarantees of $500,000 or less through the Small Business Fund in partnership with a Premier Lender, EDA will utilize the following fee structure:

  • Application fee: $300
  • 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.)

 


Tax clearance certificate:


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.
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