Direct Loans

About this funding opportunity

Open in new Tab DIRECT LOANS

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New Jersey businesses in need of financing and committed to job creation/ retention may be eligible for Direct loans through the NJEDA when conventional financing is not available.

AMOUNT

Up to $2 million for fixed assets

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Up to $750,000 for working capital

BENEFITS

Lower interest rates

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Longer terms

ELIGIBILITY

Businesses must commit to the retention and/or creation of one new full-time job for every $65,000 of NJEDA exposure within 2 years.

1.1x debt service coverage ratio; 1.0x debt service coverage for non-profits.

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Must be able to provide fixed assets (e.g. real property and machinery/equipment).

Homebased businesses are ineligible. Direct loans are one solution in the NJEDA’s portfolio of programs designed to increase access to capital and support the growth of small businesses in New Jersey. PROGRAM DETAILS ELIGIBILITY TERM & FEES MORE INFO QUESTIONS

PROGRAM DETAILS

PROGRAM DETAILS

New Jersey businesses in need of financing and committed to job creation/retention may be eligible for direct loans through EDA when financing is not available under other EDA financing programs.

Up to $2 million for fixed assets*, or up to $750,000 for working capital to be used for fixed assets or working capital

Direct Loans offer companies lower interest rates, longer terms, and a fixed rate.

EDA direct loans provide the following terms: Up to 5 years for working capital, up to 10 years for new equipment and 5 years for used equipment, and 20 years for real estate transactions.

Based on the 5-year US Treasury or floor of 1%, whichever is higher, with basis point additions for credit risk.

\* 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.

ELIGIBILITY

ELIGIBILITY

To be eligible for this program, the applicant must*: commit to the retention and/or creation of one new full-time job for every $65,000 of NJEDA exposure within 2 years; have a 1.1X Debt Service Coverage Ratio (for businesses; 1.0X Debt Service Coverage Ratio (for nonprofits); have been in operation for at least 2 years; and be able to provide fixed assets (e.g. real property and machinery/equipment).

Homebased businesses are ineligible.

*Other credit criteria may apply

TERM & FEES

TERMS

Based on the 5-year US Treasury or floor of 1%, whichever is higher, with basis point additions for credit risk.

FEES\\ Application Fee: $1,000 Commitment Fee: 0.875% of loan amount Closing Fee: 0.875% of loan amount

**\ _\\ All fees are non-refundable_

MORE INFO

TAX CLEARANCE CERTIFICATE

Division of Taxation Tax Clearance Certificate required. Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) online portal. 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. Additional, instructions detailing how to secure your tax clearance certificate are available for download.

Please be advised: 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 NJEDA at time of closing, NJEDA will not proceed with closing.

PREVAILING WAGE

Projects utilizing NJEDA financial assistance for construction related costs are subject to state prevailing wage requirements.

Effective April 1, 2020, all construction contracts in which prevailing wage applies must provide proof of valid NJ Department of Labor Construction Registration Certification. Please email PWCR@dol.nj.gov if you have any questions…

Topic areas: Public Policy and Governance, Workforce Development.

Funding amount

This other provides Varies in funding.

Deadline

Applications are accepted on a rolling basis; there is no single fixed deadline.

Who can apply

This opportunity is open to the following applicant types:

• Not specified by the program.

Eligibility

The program did not publish a separate eligibility statement. See the official opportunity page for the full eligibility criteria.

Agency

Direct Loans is administered by New Jersey Economic Development Authority (NJEDA), listed via New Jersey Economic Development Authority.