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PREMIER LENDER PROGRAM

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 partner with banks to overcome the financial obstacles that can stall the growth and expansion of New Jersey-based businesses and not-for-profit organizations.

Benefits for Businesses / Not-for-Profit Organizations:

  • Access to low-cost financing that includes NJEDA loan participation and/or guarantees, and line of credit guarantees.
  • Financing can be used for fixed assets or term working capital.
  • Attractive interest rates and terms

Benefits for Participating Lenders:

Provides lenders with more flexibility by reducing the lender’s overall exposure.

Faster turnaround on requests including:

  • Access to low-cost financing that includes NJEDA loan participation and/or guarantees, and line of credit guarantees.
  • Financing can be used for fixed assets or term working capital.
  • Attractive interest rates and terms

The Premier Lender Program Creates a Win-Win Opportunity for Businesses and Participating Lenders

<strong>PROGRAM DETAILS</strong>

PROGRAM DETAILS

In partnership with NJEDA Premier Lender banks, NJEDA can provide the following loan participations/guarantees and line of credit guarantees:

  • Up to 50% of the bank loan amount for fixed asset loans; maximum NJEDA participation of $2,000,000; maximum NJEDA guarantee of $1,500,000; total NJEDA exposure not to exceed $2,750,000.
  • Up to 50% of the bank loan amount for working capital loans; maximum NJEDA participation of $750,000; maximum NJEDA guarantee of $1,500,000; total NJEDA exposure not to exceed $2,250,000.
  • Guarantee of up to 50% of the bank line of credit amount; not to exceed $750,000.

<strong>ELIGIBILITY</strong>

ELIGIBILTY

  • Business applicants looking to qualify for a loan from a Premier Lender must*:
  • Be in operation for at least two full years.
  • Commit to the retention and/or creation of one new full-time job for every $65,000 of NJEDA exposure within 2 years.
  • 1.1X Debt Service Coverage Ratio (for businesses0; 1.0X Debt Service Coverage Ration (for not-for-profits).
  • 100% loan-to-value for real estate and 90% for equipment.
  • Must be able to provide fixed assets (e.g. real property and machinery/equipment).
  • Homebased businesses are ineligible.

* Other credit criteria may apply

<strong>INTEREST RATES & FEES</strong>

FEES

Based on the 5-year US Treasury or floor of 1%, whichever is higher, with basis point additions for credit risk.

  • 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.)

* All fees are non-refundable

<strong>MORE INFO</strong>

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.

Please note:  It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate.  If a current and clear certificate is not evidenced to NJEDA at time of closing, NJEDA will not proceed with closing

Projects utilizing NJEDA financial assistance for construction related costs are subject to state prevailing wage requirements.
 
Effective April 1, 2020 all construction contracts in which prevailing wage applies must provide proof of valid NJ Department of Labor Construction Registration Certification. Please email  PWCR@dol.nj.gov if you have any questions about this requirement.