VALLEY NATIONAL BANK JOINS SELECT LIST OF ECONOMIC DEVELOPMENT AUTHORITY PREFERRED LENDERS
Program Supports Governor Corzine’s Commitment to Enhance State’s Economy
“We are pleased to add Valley National to our list of Preferred Lenders to enhance our efforts to serve the business community in northern and central New Jersey,” said EDA Chief Executive Officer Caren S. Franzini. “The Preferred Lender Program creates new opportunities for EDA’s lending partners like Valley National because it makes funds available at below-market interest rates with flexible terms for growing New Jersey businesses.”
A quick turnaround time from approval to closing provides a strong incentive for borrowers, while the EDA’s exposure by participating in or guaranteeing a portion of a loan reduces the lender’s risk, she said.
Valley National Bank is the principal subsidiary of Valley National Bancorp, a regional bank holding company headquartered in Wayne with over $14 billion in assets. Valley National Bank currently operates 195 branches in 132 communities serving 14 counties throughout northern and central New Jersey, as well as the New York boroughs of Manhattan and Brooklyn and Queens.
“We’re honored to be chosen as a Preferred Lender by the EDA,” said Russell Murawski, first senior vice president of Valley National Bank. “This speaks volumes about Valley’s commitment to straight-forward lending practices and our dedication to the businesses of the local communities we serve.”
The Preferred Lender Program is an effective resource for EDA banking partners and their borrowers that need affordable capital for fixed assets like buildings and equipment and working capital for operating expenses. It features a three-day turnaround time for loan approval and applies to transactions in which the EDA buys a participation in bank financing and/or guarantees a portion of a bank loan.
Under the Preferred Lender Program, the EDA provides up to 50 percent of the bank loan amount for fixed asset loans, with a maximum participation of $1.25 million and a maximum guarantee of $1.5 million. For working capital loans, the EDA offers up to 50 percent of the bank loan amount, with a maximum participation of $750,000 and maximum guarantee of $1.5 million. EDA participation and guarantee terms may be up to 10 years for fixed asset loans and up to five years for working capital loans.
Borrowers of EDA funding under the Preferred Lender Program have the option of choosing a fixed rate indexed to the five-year Treasury rate or a variable rate indexed to the Prime Rate. Businesses must be New Jersey-based, in operation for at least two years, and commit to creating at least one new job per $50,000 in EDA exposure. Manufacturers need only to maintain one job per $50,000 of EDA exposure.
In becoming the 15th financial institution to join this select partnership, Valley National Bank joins a list that includes Bank of America, Capital One Bank, Citizens Bank, Columbia Bank, Cornerstone Bank, Peapack-Gladstone Bank, PNC Bank, Roma Bank, Sovereign Bank, Sun National Bank, Susquehanna Bank, TD Bank and The Bank and The Provident Bank.
The EDA is a state financing and development agency that works to strengthen New Jersey’s economy by retaining and growing businesses through financial assistance, by renewing communities, and by promoting the state’s strategic advantages to attract domestic and international business.
For more information on the EDA’s Preferred Lender Program, visit www.njeda.com. To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov.