Roundtable Highlights Role of EDA/Commercial Bank Partnership to Improve Access to Capital for Small Businesses
TRENTON, N.J. (April 28, 2017) – Nearly two dozen banks that operate in New Jersey were represented at today’s Premier Lender Roundtable hosted by the New Jersey Economic Development Authority (EDA). The event brought together leading banks that partner with the EDA through its Premier Lender Program, which was created to help small businesses access capital to support their growth in New Jersey.
The EDA partners with Premier Lender banks to provide small businesses with low cost financing that includes EDA loan participation and/or guarantees, and line of credit guarantees. Businesses can use this financing for fixed assets or term working capital. The EDA’s ability to provide guarantees or participations for a portion of these loans helps to reduce risk for lenders and facilitate approvals or enhanced financing for borrowers.
“With access to capital often cited as one of the greatest hurdles faced by small business owners, we are pleased to partner with New Jersey banks to help ensure the growth of these important job creators,” EDA Chief Executive Officer Melissa Orsen said.
This program offers loans with up to a $2 million EDA loan participation or $1.5 million loan guarantee for fixed assets, up to a $750,000 loan participation or $1.5 million loan guarantee for term working capital, and up to a $750,000 line of credit guarantee. Businesses must typically commit to creating a minimum number of jobs within two years, generally one job per $65,000 of EDA exposure. The full list of eligibility requirements and Premier Lender banks can be found at www.njeda.com/financing_incentives/programs/Premier-Lender-Program.
Habitat for Humanity of Burlington County leveraged EDA financing and a loan from a Premier Lender to purchase the building it had been leasing in Maple Shade since 2014, after moving from Cinnaminson. The building is home to the not-for-profit’s ReStore, which sells secondhand items to raise funds to build homes for families in need.
“Traffic at our ReStore has increased dramatically due to our expansion in Maple Shade,” said John Garton, Controller, Habitat for Humanity of Burlington County. “The financing the EDA provided has helped us to grow and build lasting relationships with volunteers and other stakeholders.”
Another beneficiary of the Program is DG and Sons. Based in Rochelle Park. The family-owned business expanded its existing facility from 4,000 square feet to 16,000 square feet with assistance from the program.
“The financing enabled us not only to quadruple our space, but to also hire additional mechanics,” said Dennis Galloway, who owns DG and Sons with his wife Maria Siliato-Galloway. “We now have the capacity to seamlessly support more and larger clients.”
To learn about EDA resources for small businesses and not-for-profits, visit www.njeda.com/small_midsize_business and follow @NJEDAWasHere on Twitter and LinkedIn, or call the Business Action Center at 866-534-7789.