Quantcast

CDFI Loan to Lender Program

Through the CDFI Loan to Lender Program, NJEDA provides financing to qualified Community Development Financial Institutions (CDFIs), for the purposes of administering term loans or lines of credit to qualified micro-enterprises and small businesses, some of which may not be able to secure traditional bank financing.
  • Dollar Amount

    Up to $1,500,000, with max exposure of $1,500,000 to any one CDFI, based on credit worthiness.

  • Uses

    CDFIs may use NJEDA financing to provide term loans of lines of credit to qualified businesses.

  • Benefits

    By leveraging NJEDA resources, CDFIs can provide financing to more small businesses.

  • Eligibility

    Experienced CDFIs with a minimum of 5 years demonstrated lending and portfolio management history.


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 are partnering with Community Development Financial Institutions (CDFIs), who routinely work with micro-enterprises and small businesses not qualified for traditional bank financing.
 

Program Details:

NJEDA can provide financing to qualified Community Development Financial Institutions (CDFIs), for the purposes of administering term loans or lines of credit to qualified micro-enterprises and small businesses, some of which may not be able to secure traditional bank financing.
 

Eligibility Requirements:

CDFIs looking to qualify for an NJEDA loan through the CDFI Loan to Lender Program must:
 
  • Be an experienced CDFI with a minimum of 5 years demonstrated lending and portfolio management history.
 
  • CDFIs can use NJEDA funding to provide term loans or lines of credit to qualified businesses. NJEDA funding cannot be used to restructure or refinance existing debt.
 
  • Premier CDFIs cannot use Loan to Lender funding to finance requests through the Premier CDFI Program.
 

Interest Rate and Borrower Fees*:

  • 20 year term
  • Interest Rate:
    • ​Years 0-2: 0%
    • Years 3-7 (Interest Only): 2%
    • Years 8-20 Fully amortized w/ quarterly payments P&I payments): 2%
  • Application Fee: $1,000
  • Commitment Fee: 0.875% of the loan amount
  • Closing Fee: 0.875% of the loan amount

* All fees are non-refundable.
 

Information for CDFIs:

CDFIs with a successful history of lending and portfolio management may be considered for funding through the CDFI Loan to Lender Program.

The NJEDA will request the following information for consideration of approval under Loan to Lender:
 
1. Bylaws and Articles of Incorporation
2. List of the Board of Directors and their professional affiliations
3. Organizational chart with description of staff positions
4. Listing of key personnel with resumes
5. Most recent 3 years financial statements (audited, if available)
6. Interim P&L and balance sheet 
7. List of operating revenue sources (including restrictions on amounts, conditions, etc)
8. List of local and private sector support (if applicable)
9. Ongoing funding commitments (if applicable)
10. Lending and risk management policies (including underwriting criteria and loan monitoring procedures)
11. Product description(s) (including rates, terms and allowable uses of loan proceeds) for program(s) that funding will be utilized 
      for 
12. Cash/investment management policy
13. Sample loan documents (including application, loan agreement, and promissory note)
14. Current portfolio status report and risk analysis (including aging or portfolio)
15. Tax Clearance Certificate 
 

For more information on the CDFI Loan to Lender Program, please contact:

Ken Hart
NJEDA Small Business Liaison Officer
khart@njeda.com
609-858-6661