MAIN STREET PROGRAM SUPPORTS GROWTH OF GLASSBLOWING MANUFACTURER IN VINELAND
Trenton, N.J. (Aug. 13, 2009) – The New Jersey Economic Development Authority (EDA) has finalized a line of credit guarantee to assist Vineland-based NDS Technologies under a new program established by Governor Jon S. Corzine and the state Legislature to help New Jersey businesses cope with the effects of a national economic downturn.
A $300,000 line of credit from Susquehanna Bank, backed by a 50-percent EDA guarantee, will provide working capital funds for NDS Technologies, a leader in the design, development and manufacturing of high quality technical glass, plastic and metal products for scientific professionals. The funding was made under the Main Street Business Assistance Program, which enables qualified small and mid-size businesses and nonprofit organizations in New Jersey to access capital by providing state support for bank lending through loan participations and credit enhancements.
“The Main Street program is one of several critical initiatives established under the Economic Assistance and Recovery Plan to aid businesses during the national recession,” said Governor Corzine. “I am pleased that, through this program, we are able to provide the guarantee needed to support NDS Technologies continued presence in New Jersey.”
Established in 1990, NDS Technologies caters to a group of customers in OEM, Industrial, Government and Educational fields. Specific products include adapters, bubblers, caps, clamps, chromatography products, (columns, TLC and HPLC), condensers, flasks, funnels, liners, stirrers, gas lasers, reaction systems and peptide vessels. Its corporate headquarters in Vineland is right in the heart of the scientific glassblowing community. Vineland, considered to be the unofficial “capital” of glass blowing in the United States, was home to the country’s first production factory in 1723. The company currently has 21 employees and expects to create an additional five new jobs within the next two years.
“Our location, plus our well equipped facility and excellent reputation, enables us to maintain one of the most experienced and skilled staff of scientific glassblowing professionals in the industry,” said Norm Neill, owner of NDS Technologies. “We are thankful to receive the state’s support, and look forward to remaining and growing in New Jersey.”
Developed in partnership with the New Jersey departments of Banking and Insurance and Treasury and the state’s banking community, the Main Street program has been funded by a $50-million state appropriation. The program has two components â€“ a loan participation and/or guarantee product that is being offered through participating banks and a line of credit guarantee offered for the first time through the EDA’s 14 Preferred Lender partners. To qualify, borrowers must be in business at least two years, maintain jobs in New Jersey and meet other EDA eligibility requirements.
“We are pleased to partner with the EDA to provide financing for NDS Technologies,” said Joseph R. Lizza, president of the Delaware Valley Division of Susquehanna Bank. “Our goal is to build relationships with businesses and find the right financing solutions for them, which leads to job retention and growth for the local economy.”
For term loans secured by fixed assets like buildings and equipment, the EDA will provide a maximum participation of 25 percent, or $1 million, in a bank loan and a maximum bank loan guarantee of 50 percent, up to $2 million. For working capital loans to cover operating expenses, the EDA will provide up to 25 percent of a bank loan, not to exceed $750,000, and a maximum guarantee of 50 percent, up to $1.5 million. The aggregate EDA exposure cannot exceed 50 percent of the total bank loan amount to a total maximum of $2 million. The interest rate on EDA loan participations is fixed at 5 percent for a maximum of five years. Borrowers also can use the Main Street program to refinance higher-interest debt.
The line of credit guarantee, which can be used for fixed assets or working capital, is set at a maximum of 50 percent of the bank amount, up to a maximum of $250,000.
Applications and program details for the Main Street program is available online at www.njeda.com. For more information on the Main Street Business Assistance Program, you also may call 1-(800) 537-7397 or e-mail MainSt@njeda.com.
The EDA is a state financing and development agency that works to strengthen New Jersey’s economy by retaining and growing businesses through financial assistance, by renewing communities, and by promoting the state’s strategic advantages to attract domestic and international business.