SPECIALTY FOOD MARKET IS FIRST BUSINESS TO FINALIZE FUNDING UNDER STATE’S NEW MAIN STREET BUSINESS ASSISTANCE PROGRAM
Trenton, N.J. (March 16, 2009) – A specialty food market and catering service in Mount Laurel is the first business to finalize funding under a new program established by Governor Jon S. Corzine and the state Legislature to help New Jersey businesses cope with the effects of the national economic downturn.
Abbruzzi and Giunta’s features Italian specialties and homemade recipes engendered by the owners’ South Philly roots. Diane Abbruzzi and Giunta handle the day-to-day operations of the business, which is open seven days a week and pledges to deliver food “as good as what momma used to make.”
Abbruzzi, a financial advisor by trade who works behind the scenes at the market, said he was familiar with the EDA and its financing capabilities for small and mid-size businesses, but he didn’t “connect the dots” with Main Street until the program was brought to his attention by Cornerstone Bank.
“In these tough economic times, it’s great – even for a successful business like ours – to have a state program like Main Street to help out,” Abbruzzi said.
“We are delighted to be a partner with the EDA and Abruzzi’s Italian Market. It is a fine example of the good businesses that benefit from these programs,” said David Swoyer, chief lending officer for Cornerstone Bank.
The Main Street Business Assistance Program has two components – a loan participation and/or guarantee product offered in conjunction with bank lending and a line of credit guarantee offered through the EDA’s 14 Preferred Lender partners. To qualify, borrowers must be in business for at least two years, maintain jobs in New Jersey and meet other EDA eligibility requirements.
For term loans secured by fixed assets like buildings and equipment, the EDA will provide a maximum participation of 25 percent, or $1 million, in a bank loan and a maximum bank loan guarantee of 50 percent, up to $2 million. For working capital loans to cover operating expenses, the EDA will provide up to 25 percent of a bank loan, not to exceed $750,000, and a maximum guarantee of 50 percent, up to $1.5 million. The aggregate EDA exposure cannot exceed 50 percent of the total bank loan amount to a total maximum of $2 million. The interest rate on EDA loan participations are fixed at 5 percent for a maximum of five years. Borrowers also can use the Main Street program to refinance higher-interest debt.
The line of credit guarantee, which is available for fixed assets or working capital, is set at a maximum of 50 percent of the bank amount, up to a maximum of $250,000.
Applications and more details on the Main Street Business Assistance Program is available at www.njeda.com. Additionally, you can get more information on the Main Street program by calling 1-(800) 537-7397 or sending an e-mail to MainSt@njeda.com.