RATES AND TERMS
Standard 10-year term
The interest rate will be 2 percent for this program, set at approval.
No payments or interest will accrue during the first year after closing. Payments of principal and interest will begin at the beginning of year 2.
No payment term amendments are allowed prior to end of 5th year – all other modifications unrelated to the payment terms may be permitted throughout the term of the loan. If after the 5th year any payment terms are modified, the business will no longer be eligible for forgiveness.
Borrowers may be eligible for the balance of the loan to be forgiven at the end of the fifth year.
To qualify for this forgiveness, the applicant must be
- not in default
- current on all loan payments with no delinquency of more than 90 days
- able to certify that they are still open and operating as detailed in the loan agreement.
- No collateral is required
- Guarantee is required of all owners except for non-profits
- Risk Rating: expected to be substandard. If the risk rating is found to support an override to a lower risk rating, then staff will do so to reflect the appropriate rating.
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.
Instructions on Securing your NJ Tax Clearance Certificate