The New Jersey Economic Development Authority (EDA) plays a key role in improving New Jersey’s economic well-being by providing businesses with the financial assistance needed to grow and succeed and by helping companies create and maintain jobs.

The EDA can provide businesses like yours with low-interest financing through loan participations, loan guarantees and direct loans with your choice of variable or fixed interest rates. Best of all, the EDA can provide you with longer repayment schedules than those offered by traditional lenders.

In addition to providing its own funding, the EDA works closely with banks, private investors, underwriters and other entities to provide you with more financing opportunities to overcome the obstacles that can stall the growth and expansion of your New Jersey based business.

Depending on your business goal, the EDA may have a financial solution that can work for you. For more information on the programs listed below, click on the program name.

The Direct Loan Program offers financing for companies with insufficient bank credit to obtain needed funding on their own. Direct Loans offer companies lower interest rates, longer terms, and the flexibility in choosing a variable or fixed rate.  Loans of up to $1.25 million for fixed assets, or up to $750,000 for working capital for a term of up to 10 years, with the option of either a fixed or variable below-market interest rate is available through this program.

An expedited approval process helps the Fast Start for small business Program provide low-interest financing to applicable businesses through direct loans or guarantees of up to $300,000, with the choice of a variable or fixed interest rate.  Funds may be used for business expenses not related to rent, capital construction, utilities or other indirect costs.

The Local Development Financing Fund loans are available to businesses located in Urban Aid municipalities.  This program requires the applicant to demonstrate that financing under the program is critical to the project’s success.  Up to $2 million is available for fixed assets.

This limited-term program provides financial support to commercial banks in New Jersey to assist in offering loans and guarantees to small and mid-sized businesses and nonprofit organizations with projects in New Jersey. There are two components to the Main Street Business Assistance Program: bank term loan participations and/or guarantees and line of credit guarantees.

• Loan participations up to 25% of the total transaction (not to exceed $1 million for fixed assets and $750,00 for working capital)
• Loan guarantees up to 50% of the total transaction (not to exceed $2 million for fixed assets and $1.5 million for working capital) 
• Line of credit guarantees up to 50% of the total transaction (not to exceed $250,000)

Funds may be used for working capital, fixed assets, and refinancing existing debt.

PNC Business Banking has committed to working with the EDA to create a below-market interest rate loan program for businesses in New Jersey with annual sales up to $30 million.  PNC provides five-year loans up to $2 million and can be used for equipment purchases (for up to 10 year straight amortization) or real estate purchase (up to 20 year amortization).  The EDA will provide up to a 50% guarantee of any single loan for qualified projects under the program.

Under the Statewide Loan Pool Program, the EDA can participate in or guarantee up to 50% of a bank loan.  On fixed asset transactions the EDA maximum loan participation is $1,250,000 and the maximum guarantee is $1,500,000 for an overall maximum exposure of $2,750,000.  For working capital, the maximum loan participation is $750,000 and the maximum guarantee is $1,500,000 for an overall maximum exposure of $2,250,000. Terms generally match that offered by the bank, but are limited to 10 years with amortization up to 20 years.

The Urban Plus Program provides financial support to small, women- or minority-owned businesses, manufacturers, redevelopers and non-profit organizations in the following endorsed New Jersey municipalities: Camden, Trenton, Newark, Jersey City, Paterson, Elizabeth, East Orange, New Brunswick, and Atlantic City.  Qualified companies can receive financing for up to $3 million with a below-market interest rate that is 50% of the Federal Reserve Discount Rate, with a floor of 2%.

To learn more or to get information about how you may qualify for one of EDA’s financing programs call 866-534-7789.