PREMIER CDFI PROGRAM
The NJEDA is no longer accepting applications for this program.
FOR QUALIFIED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS (CDFIs) ONLY
Through the Premier CDFI Program, NJEDA can provide small businesses with loan participations, loan guarantees, and line of credit guarantees in partnership with designated Premier Community Development Financial Institutions (CDFIs).
NJ Businesses who commit to create or retain one new full-time job for every $65,000 in EDA exposure within two years.
Businesses must be in operation for one full-year, or three full years for non-profits.
Applicants must meet guarantor credit score and LTV requirements.
The NJEDA is partnering with CDFIs to ensure that NJ businesses have the resources necessary to expand and that our communities have a healthy climate for growth.
In partnership with Premier CDFIs, NJEDA can provide qualified small businesses or not-for-profits financing in the form of a participation, guarantee or direct loan of up to $500,000 of NJEDA exposure, not to exceed 50% of the loan amount. Financing can be used by businesses for fixed assets or term working capital.
Businesses looking to qualify for a loan from a Premier CDFI must*
- Be in operation for at least one full year, or three years for non-profits
- Commit to creation or retention of one new, full-time job for every $65,000 of NJEDA exposure within two years.
- Businesses/Not-for-Profits must meet minimum Guarantor Credit Score and LTV Requirements, based on the type of applicant and financing detailed below:
- Loans: Minimum of one personal guarantor with a credit score greater than or equal to 680, must have minimum historical debt service of at least 1:1.
- Guarantees: Minimum of one personal guarantor with a credit score greater than or equal to 680, guarantee not to exceed 50% of the CDFI loan amount, length of guarantee not to exceed five years.
- Not-for-Profits: Debit service coverage of at least 1:1.
- Based on the 5-year US Treasury or floor of 2%, whichever is higher, with basis point additions for credit risk.
- 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).
* All fees are non-refundable.
For more information or to ask a specific question please send an email to email@example.com and a team member will reach out to you.