What financing and incentive programs are available to small and midsize businesses?
1. Premier Lender Program
The Premier Lender Program creates new opportunities for small businesses and EDA’s lending partners by providing low-costs financing opportunities with faster turnaround.
Benefits for Businesses:
• Access to low-cost financing that includes EDA loan participation and/or guarantees, and line of credit guarantees.
• Financing can be used for fixed assets or term working capital.
• Attractive interest rates and terms.
Program Details:
In partnership with EDA Premier Lender banks, EDA can provide the following loan participations/guarantees and line of credit guarantees:
• Up to 50% of the bank loan amount for fixed asset loans; maximum EDA participation of $2,000,000; maximum EDA guarantee of $1,500,000; total EDA exposure not to exceed $2,750,000.
• Up to 50% of the bank loan amount for working capital loans; maximum EDA participation of $750,000; maximum EDA guarantee of $1,500,000; total EDA exposure not to exceed $2,250,000.
• Guarantee of up to 50% of the bank line of credit amount; not to exceed $750,000.
Eligibility Requirements:
Business applicants looking to qualify for a loan from a Premier Lender 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 EDA exposure within two years.
• 1.1X Debt Service Coverage Ratio
• 100% loan-to-value for real estate and 90% for equipment
* Other credit criteria apply
Interest rates and borrower fees apply.
All fees are non-refundable.
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.
Please note: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to EDA at time of closing, EDA will not proceed with closing.
https://www.njeda.com/financing_incentives/Programs/Premier-Lender-Program
Premier Lenders List
The EDA is pleased to offer this listing of participating financial institutions that it partners with to provide access to capital to businesses throughout New Jersey. Please note that the information listed should be used as a reference tool only. Contact the EDA at 866-534-7789 or 609-858-6700 for more information or to verify your bank’s status.
- Atlantic Stewardship Bank
- Lakeland Bank
- Sturdy Savings Bank
- BB&T M&T Bank
- TD Bank
- Bank of America
- Newfield National Bank
- The Bank of Princeton
- Capital Bank
- OceanFirst Bank
- The Provident Bank
- Columbia Bank
- Peapack-Gladstone Bank
- TriState Capital Bank
- ConnectOne Bank
- PNC
- Two River Community Bank
- Fulton Bank of New Jersey
- Republic Bank
- Valley National Bank
- Investors Bank
- Santander Bank
- Wells Fargo
- JPMorgan Chase
- Sterling National Bank
(as of 2/14/2018)
2. Direct Loans
New Jersey businesses in need of financing and committed to job creation/retention may be eligible for direct loans through the EDA when conventional financing is not available.
For businesses that are unable to obtain bank financing on their own, direct loans are available up to $2,000,000 for fixed assets, i.e. buildings and machinery and equipment, and $750,000 for working capital to cover salaries and inventory. Loan terms are up to 10 years with an amortization period of up to 15 years for real estate transactions and up to 5 years, or the useful life, for equipment. Working capital loan terms are up to 5 years. The EDA interest rate has a floor of 3% and projects will be scored based on risk, public purpose and length of amortization. Variable and fixed rates are available ranging from the 5-year Treasury rate plus 1% to the 5-year Treasury rate plus 5%, with a floor of 3%, for a period of 5 years. Fixed interest rates are reset every 5 years.
Dollar Amount:
• Up to $2 million for fixed assets *
• Up to $750,000 for working capital
Uses:
• Fixed assets or working capital
Benefits:
• Lower interest rates
• Longer terms
Eligibility:
Businesses must commit to the creation or retention of one full-time job for every $65,000 of EDA exposure within two years
Terms:
Based on the 5-year US Treasury or floor of 2%, whichever is higher, with basis point additions for credit risk.
Fees apply and are non-refundable.
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.
Please note: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to EDA at time of closing, EDA will not proceed with closing.
* Pursuant to P.L.2017, c.261, direct loans of up to $3 million may be available to qualified businesses in targeted urban centers, regional centers, and metropolitan planning areas.
https://www.njeda.com/financing_incentives/programs/direct_loans
3. Access Program
Access is a pilot lending program that provides financing to small businesses in New Jersey - either in the form of direct loans through EDA, or through loan participations/guarantees in partnership with an EDA Premier Lenders.
Access is different from other EDA 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.
Program Details:
In partnership with EDA Premier Lender banks, EDA can provide the following loan participations/guarantees:
• Up to 50% of the bank loan amount for fixed asset loans; maximum EDA participation or guarantee of $1,000,000 with total EDA 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 EDA exposure not to exceed $1,500,000.
EDA can also offer the following direct loans:
• Up to $500,000 for fixed assets with total EDA exposure not to exceed $750,000
• Up to $250,000 for term working capital with total EDA exposure not to exceed $750,000
Eligibility Requirements:
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 EDA exposure within two years.
• 1.25X Debt Service Coverage Ratio over the past two years.
• 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 and borrower fees apply.
https://www.njeda.com/financing_incentives/small_midsize_business/Access
4. Small Business Fund
The Small Business Fund was created to assist small, minority and women-owned businesses. This product relies on the guarantor’s credit score and will provide loans or guarantees up to $500,000. To become eligible for financing, businesses must be in operation for at least one year. Additionally, to qualify as a borrower under the Small Business Fund, a business must be owned by an individual or group of individuals and the loan must be guaranteed by at least one of these individuals. The credit score of the individual guaranteeing the loan is not the sole qualifier for EDA financial assistance, but is one of the credit qualifications used to determine whether the EDA will offer a guarantee to the participating bank. Not-for-profit companies are also eligible to secure a loan under this program. For loans or guarantees up to $300,000, the guarantor credit score must be greater or equal to 700. The EDA offers up to 100% loan-to-value on owner-occupied real estate collateral and up to 90% loan-to-value on equipment collateral. For loans or guarantees up to $125,000 the guarantor credit score must be greater or equal to 650; and the EDA offers up to 95% loan-to-value on owner-occupied real estate collateral and up to 85% loan-to-value on equipment collateral.
Program Details:
An expedited approval process provides financial assistance to qualified businesses through direct loans, participations or guarantees with a fixed interest rate.
Fees apply and are non-refundable.
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.
Please note: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to EDA at time of closing, EDA will not proceed with closing.
https://www.njeda.com/financing_incentives/programs/small_business_fund
5. Bond Financing
Creditworthy manufacturing companies, 501(c)(3) not-for-profit organizations, and exempt facilities in New Jersey may be eligible for long-term financing under the Bond Financing Program.
Dollar Amount:
• $500,000 to $10 million in tax-exempt bonds for for-profit companies, up to 20 years for real estate and 10 years for equipment $500,000 with no dollar limit in tax-exempt bonds for qualified not-for-profit organizations
Uses:
• Capital improvements and expansions
• Land and building acquisitions, new construction and renovations, and equipment purchases
• Projects owned and operated for local, county and state government bodies
• Working capital and debt refinancing
Benefits:
• Longer terms
• Lower cost
• Fixed or variable interest rates
Eligibility:
Through a federally authorized program, the EDA issues conduit tax-exempt private activity bonds, the proceeds of which are used to provide financing. Borrowers must meet the eligibility requirements outlined in the Internal Revenue Code (IRC) in order to qualify for tax-exempt bond financing, including:
Manufacturing/processing facilities:
• Governmentally owned public airports, docks, wharves
• Facilities that furnish water, electric, and gas; sewer facilities; and solid waste disposal, including certain recycling facilities
• Certain facilities for governmental bodies, which qualify as tax-exempt governmental obligations
• Certain not-for-profit 501I(3) entities, including service organizations, educational institutions and health care facilities
• Certain assisted living facilities, which qualify as residential rental projects.
• Taxable bonds are also available for a wide variety of businesses, such as manufacturing, commercial, warehouse, and distribution, etc. Taxable bonds offer similar flexibility in structuring rates and terms but are not subject to the restrictions placed on tax-exempt financing under the IRC.
Bonds are sold via direct purchase or public offering. A financial intermediary, typically a bank, will directly purchase bonds from the EDA once it has performed a credit review on the applicant’s project. The bank sets the interest rate, terms and other financial details. In a public offering, bonds are purchased by an underwriter and sold to private investors in the public marketplace and may be structured with a bank’s commitment to provide a letter of credit (LOC) or a municipal bond insurance policy. Market conditions will determine the interest rate, while the bond’s terms and other financial details are set by the LOC provider.
Fees apply and are non-refundable.
Division of Taxation Tax Clearance Certificate required. Certificates must 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.
Please note: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to EDA at time of closing, EDA will not proceed with closing.
https://www.njeda.com/financing_incentives/programs/bond_financing
6. Garden State Growth Zone – Business Lease Incentive
The Garden State Growth Zone (GSGZ) Business Lease Incentive (BLI) offers reimbursement of a percentage of annual lease payments to for profit businesses and non-profit organizations in eligible areas that plan to lease between 500 – 5,000 square feet of new or additional market-rate, first-floor office, industrial or retail space for a minimum 5-year term.
Incentive Type and Amount:
Reimbursement of a percentage of annual lease payment (for 2 years of a 5 or 10-year lease) administered as follows:
• Year 1: 15% of annual lease payment
• Year 2: 15% of annual lease payment
The BLI payment, when combined with any other governmental grants received by the applicant, cannot exceed 80% of the annual lease payment.
Program Requirements:
• A limit of one BLI will be approved per applicant (or related entity) over the 3-year life of the pilot program. Applicants that have been approved for a GSGZ Business Improvement Incentive are not eligible for a BLI, and vice versa.
• Applicant must be planning to lease between 500 s.f. – 5,000 s.f. of new or additional first-floor, market-rate office, industrial and retail space in the GSGZ for a minimum 5-year term. As this is an incentive program, no award will be made for leased space that has already been executed prior to application.
• An entity leasing more than 5,000 s.f. is eligible for a BLI, but only the first 5,000 s.f. of space will be reimbursed.
• Applicants or related entities operating within a facility that has received incentives through Grow NJ or ERG are not eligible.
• Applicant must certify that they are not in default of any other EDA financing.
• High Tech and Business Incubator members in Not for Profit facilities would not be eligible for independent lease incentives (operators are eligible.)
Funding Disbursement:
The GSGZ BLI Program is a performance-based incentive program. This means that no funding is immediately disbursed upon application approval, but rather until evidence is demonstrated that the grant terms have been met. This includes:
• Certification from the landlord that the lease agreement is not in monetary or material default and that the applicant occupied and operated from the location for the full year under which reimbursement is being requested.
• Certification that the BLI, when combined with other governmental grants, does not exceed 80% of annual lease payment.
Eligible Areas:
EDA has worked with the five GSGZ cities to determine areas within the city that are eligible for the incentive. These areas are consistent with existing redevelopment plans and/or zoning ordinances. Below are maps for your reference. Please contact the GSGZ Program Representative if you are unsure of your location's eligibility.
Atlantic City - Click here for more information
Camden - Click here for more information
Passaic - Click here for more information
Paterson - Click here for more information
Trenton - Click here for more information
Fees apply and are non-refundable.
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.
Please note: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to EDA at time of application, EDA will not proceed with approval.
7. Garden State Growth Zone – Business Improvement Incentive
The Garden State Growth Zone (GSGZ) Business Improvement Incentive (BII) offers grants of up to 50% of total project cost, grant amount not to exceed $20,000, to businesses operating within the first-floor of a commercial corridor in the GSGZ that are planning to make building improvements, with a minimum project cost of $5,000.
Incentive Type and Amount:
Grants of up to 50% of total project cost, grant amount not to exceed $20,000, with a minimum project cost of $5,000. Applicants must certify a 1:1 match of grant funding, and obtain all applicable zoning and building permits. Matching funds cannot include other public financing or assistance.
Program Requirements:
• A limit of three BIIs (limit of 1 BII per project address) will be approved per applicant (or related entity) over the 3-year life of the pilot program. Applicants that have been approved for a GSGZ Business Lease Incentive are not eligible for a BII, and vice versa.
• Applicants must certify a 1:1 match of grant funding, and obtain all applicable zoning and building permits. Matching funds cannot include other public financing or assistance.
• Building improvements must comply with New Jersey prevailing wage requirements and be completed within 12 months from executed grant agreement, with an option for a 6-month extension upon request.
• Project must include improvements made to first floor of a facility within an eligible commercial corridor in the GSGZ, as program purpose is to increase pedestrian traffic and encourage streetscape vibrancy and building improvements.
• Facilities that have received incentives through Grow NJ or ERG are not eligible.
• Applicant must certify that they are not in default of any other EDA financing.
Funding Disbursement:
The GSGZ BII Program is a performance-based incentive program. This means that no funding is immediately disbursed upon application approval, but rather until evidence is demonstrated that the grant terms have been met. This includes:
• Proof of completion and payment of the building improvements
• Certification that the project has been completed along with either a CO or a Certificate of Approval issued by the GSGZ.
• Site visit from Authority staff confirming improvements were made.
• Documentation reflecting prevailing wage compliance.
Eligible Areas:
EDA has worked with the five GSGZ cities to determine areas within the city that are eligible for the incentive. These areas are consistent with existing redevelopment plans and/or zoning ordinances. Below are maps for your reference. Please contact the GSGZ Program Representative if you are unsure of your location's eligibility.
Atlantic City - Click here for more information
Camden - Click here for more information
Passaic - Click here for more information
Paterson - Click here for more information
Trenton - Click here for more information
Fees apply and are non-refundable.
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.
Please note: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to EDA at time of application, EDA will not proceed with approval.
Garden State Growth Zone Program Representatives: If you have any questions about either program or eligibility in your area, please first contact the following representative from your city. These representatives must also review and certify any application for completeness prior to EDA considering the application for approval.
General Program Questions: EDA Senior Community Development Officer, 609-858-6663 or 609-858-6767.
City-Specific Questions:
Atlantic City: James M. Rutala, PP, AICP, MBA
jmrutala@comcast.net
609-743-0354
Camden: Joe Thomas
Economic Development Rep.
Department of Development and Planning
520 Market Street, City Hall – Suite 218
Camden NJ, 08101
856-968-3531
Jothomas@ci.camden.nj.us
Passaic: Soraya Stam
UEZ Coordinator-City of Passaic
330 Passaic Street
Passaic, NJ 07055
973-365-5500
sstam@cityofpassaicnj.gov
Paterson: Penni Forestieri - UEZ Director
125 Ellison Street, 4th Floor
Paterson, NJ 07505
973-321-1220 Office
pforestieri@patersonnj.gov
Trenton: Eric Maywar, Economic Development Specialist
City of Trenton
319 East State Street
609-989-3529
emaywar@trentonnj.org
8. Small Business Services
https://www.njeda.com/small_midsize_business/services
Microlenders and Community Development Financial Institutions (CDFIs)
Through the Loans to Lenders component of the Fund for Community Economic Development, EDA makes capital available to financial intermediary organizations who can effectively reach small businesses in local markets, including micro-lenders and CDFIs. These organizations have the ability to offer term loans and lines of credit to micro-enterprises and small businesses not qualified for traditional bank financing.
Small businesses who are in need of a microloan are encouraged to click on the links below or navigation on the left to learn more about financing through these organizations.
UCEDC - a statewide, not-for-profit economic development corporation dedicated to assisting and financing small businesses and minority- and women-owned enterprises. Access to capital is often a small business owner’s greatest challenge and UCEDC offers a variety of financing options when conventional lending sources are not available. With loans ranging from $500 to $5 million, including microloans, SBA 7a, and SBA 504 loans, UCEDC will work with start-up and established businesses to find the right financing solution.
Cooperative Business Assistance Corporation (CBAC) - CBAC is a non-profit, public-private partnership created in 1987. Established to encourage the growth and stability of the small business sector, CBAC facilitates opportunities for banks to make business loans in the City of Camden, New Jersey, Philadelphia, Pennsylvania, and the six counties located in Southern New Jersey. CBAC offer loans to businesses for as little as $1,000 to as much as $2,000,000 through various loan and guaranty programs.
Greater Newark Enterprises Corporation (GNEC) - GNEC provides financial assistance and training to small businesses, businesses owned by women, low-income individuals, and minorities for the purpose of encouraging entrepreneurship.
New Jersey Community Capital (NJCC) - New Jersey Community Capital is a 501(c)(3) nonprofit CDFI that provides innovative financing and technical assistance to organizations that support housing and sustainable community development ventures that increase jobs, improve education and strengthen neighborhoods. NJCC offers loan capital that is broader than bank lending to results-oriented, socially responsible organizations that are committed to creating positive change in low-to-moderate income communities throughout New Jersey.
Regional Business Assistance Corporation (RBAC) - RBAC is a private non-profit organization formed in 1981 to provide loans to both new and existing small businesses in New Jersey. RBAC's mission is to provide loan capital and business mentoring to small business owners that cannot access more conventional bank financing. All RBAC loan programs can be, and often are used in partnership with other lenders for larger loan amounts.
9. Technical Assistance Partners
In addition to the millions of dollars in funding EDA administers as loans and loan guarantees to New Jersey small businesses, EDA also partners with several organizations that provide a wide array of services to New Jersey small businesses and entrepreneurs.
Expert staff at these organizations provide support and guidance in a variety of areas including: technical assistance, mentoring/coaching, financing, government contracting assistance, technology commercialization and international trade facilitation. Our partners offer focused outreach to minority-and women-owned businesses and many of their programs are free of charge.
We encourage you to explore how your business can benefit from these services. Click on the links below to learn more.
UCEDC - UCEDC offers intensive six-week workshops throughout the year at various locations in New Jersey, with curriculum tailored specifically to start-ups or established businesses. Start-up entrepreneurs are guided through a personal business-readiness assessment and the basics of starting a business in New Jersey. Owners of established businesses are helped to challenge their status quo and bring their operations to the next level. The UCEDC also serves as a PTAC (see below) for Union County Businesses.
Procurement Technical Assistance Center at New Jersey Institute of Technology (PTAC) - The purpose of NJIT Procurement Technical Assistance Center (PTAC) is to find, negotiate, and acquire government contracts for New Jersey based businesses (excluding Union County). At no cost to the business, their Procurement Specialists assist in navigating the private and public sector procurement processes with one-on-one and group counseling, proposal reviews, certification and registration assistance, marketing, post award requirements and specialized training.
New Jersey Small Business Development Centers (NJSBDC) - The NJSBDC network, comprised of 11 centers across the state, provides comprehensive services and programs for small business in New Jersey. NJSBDC expert staff and practicing business consultants help established small business owners and aspiring entrepreneurs to develop business plans and marketing strategies, learn accounting and financial analysis, find capital financing, identify new markets, and expand their operations. NJSBDC provides one-to-one management consulting and counseling, training, loan packaging services and specialized assistance in procurement, technology commercialization, E-Business presence, and international trade. (See Page 14 for locations)
10. Small Business Bonding Readiness Assistance Program
New Jersey Economic Development Authority (NJEDA) has partnered with The African American Chamber of Commerce of New Jersey (AACCNJ) and Minority Business Development Institute (MDBI) for the Small Business Bonding Readiness Assistance Program. MBDI, the program administrator, specializes in Capacity Building Solutions for Small, Minority, Woman, and Veteran-Owned Construction Firms in the areas of Bonding & Insurance, Community Outreach, Capital Management, Compliance & Monitoring, Capacity Building Programs, Back Office Services and Construction Management. The program is designed to help construction business needs, providing comprehensive technical assistance, supportive services and access to capital. The goal is to have more qualified small firms bidding and working on public work and state contracts.
MBDI has mentored 288 firms in capacity building programs, 181 Financial Education Classes. We have streamed 42 Quickbooks webinars and conducted 1,450 hours of personalized One-on-One assessments and helped firms to qualify for almost $187 million in surety credit, writing bonds as small as $50,000 and as large as $20 million with the world’s largest A+ rated sureties.
Classroom Training
Eighteen courses will help you develop your skills in a range topics including accounting and finance, operations, contract law and avoiding construction fraud, optimizing your bond line, estimating and working with construction documents. These courses will help you to manage and sustain increased capacity. The program will offer live, live-streamed, and recorded classes, along with one-on-one technical assistance throughout all areas of NJ. We will apply tools and technology to work with the demanding lives of NJ contractors. QuickBooks Training, Six QuickBooks webinars will help you to develop and strengthen your firm’s internal accounting system which is the backbone of any business and must be solidified in order for your business to be sustainable. You will be eligible for an assessment of your current accounting system, or assistance setting up a new system to make sure that you have a solid platform for growth and are managing your profits properly.
One-on-One Consulting Services
You will receive 10 sessions of consulting with a construction industry expert to help you to develop and execute your vision. No other mentorship program brings this level of significant resources to you! One-on-ones will commence immediately upon your acceptance into the program.
https://njbondreadinessprogram.bondingportal.com/njedaWebApp/landing/?page=1
11. Bonding Readiness Segment (BRS) Report
Your BRS Report will give you an in-depth assessment of the strengths and weaknesses of your firm so that you can target strategic growth and qualify for the largest bond program possible. The report will help you to determine your capacity to perform on projects. Schedule Program will start in September Classes will be held bi-weekly from 6:00 - 8:00 p.m. Location: 306 Farnsworth Ave. Suite B Bordentown NJ with live-stream option for qualifying participants QuickBooks Live-Streaming Webinars starting in November from 8:00 - 9:15 a.m.
Program Requirements:
Interested NJ certified SBE contractors must apply, qualify for an interview through the pre-screening process, and then may or may not be selected to participate. There is no cost to participate in the program, but it is mandatory to attend all courses, webinars and one-on-one sessions. We seek CEOs who are ready willing and able to make the changes necessary to grow their business through increased opportunity.
Application: https://njbondreadinessprogram.bondingportal.com/njedaWebApp/login.html
12. UCEDC Programs for Small Business
Micro Loan Program for Start-Up Businesses (Under 2 Years in Operation)
The UCEDC provides micro loans to companies seeking $500 to $35,000. Interest rates are fixed at 10.25%, with terms up to a maximum of 60 months. A written business plan is required. Approval time: 4-6 weeks. Loans can be used for machinery/equipment, supplies/inventory and working capital. There are no prepayment penalties. Personal guarantees and collateral are required.
First Steps Childcare Loan Program
The UCEDC offers a childcare loan program that provides short-term loans to childcare providers.
Business Growth Fund (More than 12 months of operational history)
The UCEDC offers a Business Growth Fund loan for companies with more than 12 months of operational history. Loans range from $5,000 to $150,000 for terms of 12 to 120 months. Interest rates are the commercial lending rate plus 1 percent. Loans can be used for the purchase of fixed assets, inventory, equipment, working capital, existing businesses, leasehold improvements. Not-for-profit childcare centers are also eligible. There are no prepayment penalties.
Line of Credit Loans
The UCEDC provides lines of credit loans to startup and existing business owners whose cash flow needs fluctuate. Lines of credit are available from $5,000 to $20,000 to purchase supplies or inventory or for working capital. Interest rates range from prime + 5% for start-up businesses to prime + 4% for businesses with at least two years of successful operations. Lines of credit are for a one-year, renewable term.
Debt Refinancing Loan Program
The UCEDC offers loans to refinance existing business-related debt. Loans range from $5,000 to $20,000 to reduce or eliminate business-related debt from credit card use, equipment leases or prior business loans. Interest rates on the loan are prime + 4% and terms can range from 12 to 48 months.
13. New Jersey Small Business Development Centers (SBDC)
SBDCs provide free consulting services to established small business owners, start-ups, and aspiring entrepreneurs. SBDC consulting typically starts with an in-person meeting at one of 11 regional centers. Services include business plan review, support for e-commerce, international trade, government procurement, manufacturing and technology commercialization.
Atlantic/Cape May/Cumberland
Carol Waties
Regional Director NJSBDC @ Stockton University
609-626-3389
Bergen
Vincent Vicari
Regional Director
NJSBDC @ Ramapo College of New Jersey
201-684-7135
Burlington/Camden/Gloucester/Salem
Robert Palumbo
Regional Director
NJSBDC @ Rutgers University – Camden
856-225-6221
Essex
Dr. Tendai Ndoro
Regional Director
NJSBDC @Rutgers University – Newark
973-353-5950
Hudson
Gail A. Marquis
Regional Director
NJSBDC @ New Jersey City University
201-200-2156
Hunterdon/Somerset
Bill Harnden
Regional Director
NJSBDC @ Raritan Valley Community College
908-526-1200
Mercer
Lorraine Allen
Regional Director
NJSBDC @ The College of New Jersey
Middlesex
Elayne McClaine
Regional Director
NJSBDC @ Rutgers University – New Brunswick
848-445-8790
Monmouth/Ocean
Jackeline Mejias-Fuertes
Regional Director
NJSBDC @ Brookdale Community College
732-842-8685
Morris/Sussex/Warren
Dolores Stammer
Regional Director
NJSBDC of Northwest Jersey
908-269-8475
Passaic
Kate Muldoon
Regional Director
NJSBDC @ William Paterson University
973-321-1378
Union
David Margulies
Regional Director
NJSBDC @ Kean University
908-737-4220
14. US Small Business Administration
504 Loans
Financing for fixed assets including real estate and machinery and equipment, for companies with a net worth not to exceed $7 million or whose average profit after tax does not exceed $2.5 million for the past two years. SBA loans (debentures) can comprise up to 40% of the total financing and may participate up to $5.5 million for a manufacturing company. SBA loans can comprise 40% of the total financing, up to $5 million for women, minority or veteran owned businesses, and up to $5 million for companies that fall into other categories. The bank provides financing for 50% of the total loan, and the company provides 10% equity. The term of the SBA portion of the loan is 10 years on machinery and equipment or 20 years on real estate and is subordinated to the bank loan. The interest rate of the SBA portion of the loan is set at the prevailing SBA rate at the time of closing. Loans are packaged by Certified Development Companies licensed by the US SBA.
7 (a) Loans
SBA loan guarantee for companies purchasing real estate, machinery and equipment, inventory and working capital. The SBA can provide a 90% guarantee on loans up to $150,000 and 75% on loans over $150,000. The maximum loan guarantee for working capital is $1 million and for fixed asset loans up to $1.5 million. Loan terms are up to 10 years for working capital, and up to 25 years for fixed assets.
SBA Express
This program provides a loan guarantee up to 50% for companies purchasing real estate, machinery and equipment, inventory, refinance old debt, and working capital. Loans may also be used as a term loan or as a revolving line of credit. The maximum loan amount is $350,000 with terms of 5-10 years on working capital, 25 years on fixed assets, not to exceed the life of the asset, and no more than 7 years on a revolving line of credit. On loans of $50,000 and under a maximum interest rate of 6.5% over prime applies and on loans over $50,000 a maximum interest rate of 4.5% over prime applies.
EB-5 Program
The program is currently scheduled to end on September 30, 2012. This visa provides a method of obtaining a green card for foreign nationals who invest money in the United States. To obtain the visa, individuals must invest $1,000,000 (or at least $500,000 in a “Targeted Employment Area” - high unemployment or rural area), creating or preserving at least 10 jobs for U.S. workers excluding the investor and their immediate family. Investments can be made directly in a job-generating commercial enterprise (new, or existing – “Troubled Business”), or into a “Regional Center” - a 3rd party-managed investment vehicle (private or public), which assumes the responsibility of creating the requisite jobs. Regional Centers may charge an administration fee for managing the investor’s investment.
Contact Mr. Paul Levinshoh, New Jersey Regional Center LLC, 299 Broadway, Suite 1220, New York, NY 10007, (212) 577-1270, plev@nycrc.com.
15. SCORE – Service Corps of Retired Executives
SCORE is a nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow, and succeed. SCORE is a resource partner with the U.S. Small Business Administration (SBA), and has been mentoring small business owners for decades. SCORE is a network of 13,000+ volunteers who offer small business entrepreneurs confidential business counseling services at no charge. Score offers local workshops and events and on-line workshops. Go to www.score.org for more information or to find the closest location.
16. Women’s Business Centers
The Women’s Business Center (WBC) Program is a network of approximately 110 community-based centers, which provide business training, counseling, mentoring and other assistance geared toward women, particularly those who are socially and economically disadvantaged. New Jersey’s WBC:
Women’s Center for Entrepreneurship Corp. Latin American Economic Development Association
Peapack-Gladstone Bank 433 Market Street, Suite 1
311 Main Street, 2nd floor Camden, NJ 08102-1572
Chatham, NJ 07928 (856) 338-1177
Phone: 973-507-9700 Website: http://www.laeda.com/
Website: www.wcecnj.org
17. Business Action Center (BAC)
https://www.state.nj.us/state/bac/bac-about.shtml
If you are starting a business, the Business Action Center (BAC) can help. Visit the BAC’s website (noted above) for links and more information on: licenses and permits, growing your existing business, tax center, financing and incentives, workforce, registering and naming businesses, employer responsibilities, business basics and types.
18. BAC Call Center – 1-800-JERSEY7
A Call Center operates within the Business Action Center (BAC) to provide guidance to those starting a business and firms growing or planning a move. The Call Center provides the answers to all business-related questions for doing business in New Jersey. Agents are available Monday through Friday from 8:00 am to 5:00 pm.
19. Registering a Business in New Jersey
Anyone establishing a business in NJ must register with the NJ Division of Revenue. Registration is required to be filed at least 15 business days prior to the day the business opens. Individuals registering a business should obtain a NJ Business Registration Package from the NJ Department of the Treasury, Division of Revenue. The package contains information and forms needed to register a business. By completing and filing a NJ-REG with the Division of Revenue, a business will be registered for applicable taxes and related liabilities. To register a business visit www.state.nj.us/treasury/revenue/.
20. Small Business Investment Company Program
There are a variety of alternatives to bank financing for small businesses. The Small Business Investment Company (SBIC) program fills the gap between the availability of private capital and the needs of small businesses for growth capital. Licensed and regulated by the U.S. Small Business Administration, SBIC’s are privately owned and managed investment funds that make capital available to qualifying U.S. small businesses at attractive rates. Some SBIC’s invest in a particular field or industry while others invest more generally. For more information, visit http://www.sba.gov/inv.
21. Small Business Innovation Research (SBIR) Program
The SBIR program encourages small businesses to advance their technical potential from funds committed by federal agencies with large extramural research and development budgets. The SBIR program serves to fund the critical startup and development stages for a technology and encourages commercialization of the technology. Each year, 11 federal departments and agencies are required to reserve 3.2% of their extramural R&D funds for awards through the SBIR program: Agriculture; Commerce; Defense; Education; Energy; Health and Human Services Homeland Security; Transportation; Environmental Protection Agency; National Aeronautics and Space Administration; and National Science Foundation.
Participating agencies publish one or more SBIR solicitations per year. The solicitation is a list of topics and areas where they are interested in sponsoring research. Some agencies such as the Departments of Defense and Homeland Security the topics are very specific. These agencies have some very real, specific and immediate problems that they need help in solving. At the other end of the specificity spectrum, the National Institutes of Health (NIH) and Department of Agriculture publish broader categories of interest and leave it to the applicant small business to specify the topic. Beyond those categories, NIH will entertain any proposal related to improving the nation’s health and is the only SBIR agency to consider unsolicited proposals. Companies that think they have a technology that will address an agency’s problem or interests can develop and submit a Phase I proposal. Proposals are evaluated competitively and awards are made based upon relative merit. Emphasis is placed on technologies that both address the sponsoring agency’s interest and also have commercial application.
Three Phases of the SBIR Program:
• Phase I - purpose is to demonstrate the technical, scientific and increasingly commercial merit and feasibility of the proposed technology. Phase I grant awards vary in size by agency. They are typically up to $100,000, but sometimes more. Upon successful completion of Phase I, companies can apply for Phase II.
• Phase II - supports the main R&D effort and may include the development of a prototype. Phase
II awards also vary by agency. They are typically up to $750,000, but sometimes more.
• Phase III - commercialization. Companies that successfully complete Phases I and II are expected to commercialize their technology. No additional cash awards are available for Phase III. Companies are generally expected by that point to be able to raise the funding they need privately or through a government customer.
Eligibility:
• A company must be 51% owned and controlled by individuals who are U.S. citizens or permanent resident aliens. It must also be a small business with no more than 500 employees including affiliates. All Phase I and Phase II work must be performed in the U.S.
http://www.sbir.gov/about/about-sbir
22. Small Business Technology Transfer Program (STTR)
Total funding for the STTR program is approximately 10% of the funding available under SBIR. The objective of STTR is to stimulate the transfer of technology from research institutions to the marketplace via cooperative research and development. The intent was that small companies would commercialize promising ideas that originated in universities and other non-profit institutions. The reality thus far has been that a majority of projects have focused on co-development of the small business’s technology. SBIR and STTR are structurally similar with three Phases and the same award levels. The primary differentiator of STTR is that at least 30% of the work is to be conducted by a non-profit or academic research institution in collaboration with the small business. In addition, STTR is more faculty-friendly than SBIR.
23. Small Employer Health Benefits Program
The Small Employer Health Benefits (SEH) Program became operational in 1994 to ensure small employers: (1) have access to small group health benefits plans without regard to the occupation of the group, or the health status of any of the group’s members; and (2) have the ability to renew the coverage from year to year regardless of the group’s claims experience or any changes in the health status of the group’s members.
The SEH Program restricts carrier use of small group participation requirements, employer contribution requirements, preexisting condition limitation provisions, and factors related to rates for health benefits plans offered to small employers. The SEH Program establishes standard health benefits plans. In addition, the SEH Program includes a right for employees and their dependents to continue coverage when no longer eligible for the group’s health plan. This continuation right applies even when an employer is not subject to COBRA.
To learn more about coverage for small employers, see Shopping for Health Insurance information for a brief primer, a more detailed buyer’s guide, FAQs, a premium comparison survey, carrier contact information and more. Then, contact an agent or broker that sells group health insurance or a carrier that offers small employer health benefits coverage for help with your specific situation.
For more information, such as Eligibility, Program Features and Commonly Asked Questions, see the SEH Buyer's Guide at https://martinins.com/library/njdobi/marketing/buyersguide.pdf.
