SMALL BUSINESS, MANUFACTURING SUPPORT HIGHLIGHT DECEMBER EDA BOARD ACTION
$100 Million in Assistance Approved to Grow New Jersey Businesses and Generate Jobs
TRENTON, N.J. (Dec. 12, 2012) – In support of the Christie Administration’s efforts to spur small business growth and encourage community investment, the Board of the New Jersey Economic Development Authority (EDA) yesterday approved more than $100 million in assistance at its monthly meeting and agreed to extend and enhance the New Jersey Business Growth Fund to help more businesses access capital. In total, approved projects are expected to leverage over $300 million of investment in the State’s economy and lead to an estimated 2,870 new and retained jobs, as well as 570 construction jobs.
“EDA funding continues to provide an important financial boost to a broad range of projects critical to New Jersey’s economy,” said EDA Chief Executive Officer Michele Brown. “December’s Board meeting is marked by a breadth of support for the State’s small business and manufacturing sectors, which is essential to our efforts to create jobs for New Jersey residents.”
Launched in 2004, the New Jersey Business Growth Fund is a partnership between the EDA and PNC Bank. Under the program, creditworthy companies in New Jersey may be eligible for up to a $3 million PNC Bank loan with a 25-percent or 50-percent EDA guarantee. Funding can be used for machinery and equipment or real estate. The program had required that one new job be created for every $50,000 in guarantees. To assist a greater number of businesses, the program now requires that the job either be created or maintained by the company. Since inception, the program has supported over 300 businesses with $150 million in bank loans and approximately $46 million in EDA guarantees.
Three companies approved last month will use the New Jersey Business Growth Fund to help purchase buildings to house their businesses. This includes Camden County-based Greenlight Auto Specialist Corporation, an auto insurance brokerage agency; Wiso Promo & Uniform, Inc. of Saddle Brook, a uniform wholesaler that provides screen printing and embroidery services; and Nellie’s Provisions Inc., a wholesale meat broker in Gloucester City providing deli products to specialty shops. Together, these companies will maintain their workforce of 26 and create a total of 29 new jobs.
The EDA Board also approved financing and incentives to assist manufacturing projects across a range of industries.
Deep Foods Incorporated was approved for an award of up to $26.9 million over ten years through the Grow New Jersey Assistance Program to encourage this family-owned manufacturer of Indian cuisine to expand in New Jersey, rather than relocate out of state. The company is considering leasing space at two facilities adjacent to its current building in Union Township or moving to Pennsylvania. If the New Jersey location is chosen, Deep Foods expects to create 175 new jobs and maintain its 275 existing employees. Another food manufacturer, Tropical Cheese Industries, was approved to participate in the Urban Enterprise Zone Energy Sales Tax Exemption Program (U-STX). It is estimated that the annual U-STX benefit to the Perth Amboy-based manufacturer of Hispanic style cheeses and dairy products will total $45,000.
An award through the Business Employment Incentive Program (BEIP) was approved to encourage Ferring Pharmaceuticals, Inc. to establish its first U.S. manufacturing plant in Parsippany-Troy Hills. The global biopharmaceutical company, which is also considering a location in New York, would create an estimated 175 new jobs and invest $87 million. The Rosenwach Group was also approved for a BEIP to relocate from New York and consolidate its manufacturing, service and distribution operations in Franklin Township. The company, a “one stop shop” for new water technologies, historic building preservation, and outdoor site furnishings, would create an estimated 90 new jobs and invest more than $11.4 million if it moves to New Jersey.
EDA Board meetings are typically held at 10 a.m. on the second Tuesday of each month at 36 West State Street in Trenton. The Board meeting schedule, as well as Board agendas and minutes, are available at www.njeda.com. All Board actions will take effect at the expiration of the statutory period for the Governor’s review and consideration of the meeting minutes.
The EDA is part of the state’s results-driven Partnership for Action. Created by Governor Christie and led by Lt Governor Guadagno, the Partnership is the hub for all economic development activity in New Jersey and is comprised of three interconnected and highly focused organizational elements: Choose New Jersey, the Business Action Center and the EDA.
To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov.