ACCESS
Access is different from other NJEDA financing programs in that it provides greater flexibility to borrowers by placing greater emphasis on the borrower’s cash flow and less emphasis on hard collateral. Access is different from other NJEDA financing programs in that it provides greater flexibility to borrowers by placing greater emphasis on the borrower’s cash flow and less emphasis on hard collateral.
Provides more flexibility to small businesses by placing greater emphasis on the borrower’s cash flow and less emphasis on hard collateral.
PROGRAM DETAILS
Access is a pilot lending program that provides financing to small businesses in New Jersey – either in the form of direct loans through NJEDA, or through loan participations or guarantees in partnership with a NJEDA Premier Lenders.
In partnership with NJEDA Premier Lender banks, NJEDA can provide the following loan participations or guarantees:
- Up to 50% of the bank loan amount for fixed asset loans; maximum NJEDA participation or guarantee of $1,000,000 with total NJEDA exposure not to exceed $1,500,000.
- Up to 50% of the bank loan amount for working capital loans; maximum EDA participation or guarantee of $500,000 with total NJEDA exposure not to exceed $1,500,000.
NJEDA can also offer the following direct loans:
- Up to $500,000 for fixed assets with total NJEDA exposure not to exceed $750,000
- Up to $250,000 for working capital with total NJEDA exposure not to exceed $750,000
ELIGIBILTY
Business applicants looking to qualify for a loan from Access must*:
- Be in operation for at least two full years.
- Commit to creation or retention of one new, full-time job for every $65,000 of NJEDA exposure within two years.
- The average historical and global Debt Service Coverage Ratio over the past two years is at least 1.25x.
- Collateral will be a lien on assets purchased for fixed financing and a lien on all business assets for working capital financing.
- Loan to value may be greater than 100% for real estate and 90% for equipment based on other underwriting criteria.
- FICO score of 50% of the personal guarantors must be 700.
* Other credit criteria apply
INTEREST RATES & BORROWER FEES
Interest rate is based on the 5-year US Treasury or floor of 2%, whichever is higher, with basis point additions for credit risk.
Borrower fees will utilize the appropriate existing NJEDA fee structure based on the structure of the financing being provided under Access.
For loan participations or guarantees of more than $500,000, in partnership with a Premier Lender, NJEDA will utilize the following Premier Lender Program fee structure:
- 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.)
For direct loans of more than $500,000, NJEDA will utilize the following Direct Loan Program fee structure:
- Application fee: $1,000
- Commitment fee: 0.875% of loan amount
- Closing fee: 0.875% of loan amount
For direct loans of $500,000 or less NJEDA will utilize the following Small Business Fund Program fee structure:
- 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.)
For loan participations or guarantees of $500,000 or less through the Small Business Fund in partnership with a Premier Lender, NJEDA will utilize the following fee structure:
- Application fee: $300
- 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.)
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.
PROGRAM GUIDE
QUESTIONS
For more information or to ask a specific question please send an email to smallbusinessservices@njeda.com and a team member will reach out to you.