New Jersey’s goal for our urban centers is to provide a distinct and creative approach to redevelopment efforts in New Jersey's cities. The state offers a variety of resources with the objective to improve the quality of life by creating value in our urban communities. The New Jersey Redevelopment Authority (NJRA) offers financing programs that are committed to the redevelopment of urban New Jersey.
NJRA Pre-Development Fund (NJRA PDF)
The $2.5 million NJ-PDF provides additional resources for community economic development projects within NJRA’s eligible municipalities and fills funding gaps in programs currently offered by the state. Funding covers various pre-development activities including feasibility studies, architectural costs, environmental and engineering studies, legal and other related soft costs for development to occur. Funds advanced will be repaid from proceeds realized upon the sale of the site to the developer or at the commencement of development activity. Typically, terms are 12-18 months at 6%-7% interest.New Jersey Urban Site Acquisition Program (NJUSA)
The NJUSA program is a $20 million revolving loan fund that facilitates the acquisition, site preparation and redevelopment of properties which are components of an urban redevelopment plan in NJRA eligible communities. Funding covers site acquisition expenses including costs customarily associated with acquiring title to property, planning and predevelopment expenses, site assembly and redevelopment of properties which are part of urban redevelopment plans. Funds advanced will be repaid from proceeds realized upon the sale of the site to the developer or at the commencement of development activity. Typically, terms are 12-18 months at 6%-7% interest.NJRA Bond Program
The NJRA has the ability to issue $100 million of taxable and tax-exempt bonds annually to stimulate revitalization in New Jersey's urban areas. Tax-exempt bond financing can be used for land and building acquisition, new construction or expansion or purchase of new equipment and machinery. Certain 501(c)(3) nonprofit entities and manufacturers with redevelopment projects in any NJRA eligible municipalities may apply. The amount of tax-exempt bonds for manufacturing companies is $750,000-$10,000,000. Nonprofit organizations are not subject to the same restrictions for use of funds. The amount for nonprofits is $750,000-no limits. Average rate is below prime, either variable or fixed.New Jersey Redevelopment Investment Fund (RIF)
The NJRA manages a $9 million flexible investment fund that provides debt and equity financing for business and real estate ventures. Through this program, the NJRA is able to offer direct loans, real estate equity, loan guarantees and other forms of credit enhancements for redevelopment projects located within eligible municipalities. Rates are typically below market rate. Terms are determined base on the assets being financed, as well as the financing needs for sustainable project development.NJRA Environmental Equity Program (E2P)
The NJRA’s E2P program advances Brownfields redevelopment efforts by providing the up-front capital to assist with the predevelopment stage of a Brownfields redevelopment project. Funds cover acquisition/acquisition related costs, planning/predevelopment, remediation (no responsible party is available to remediate site), and demolition. Projects must be located in a NJRA-eligible and must meet certain criteria.Working in Newark's Neighborhoods (WINN) *City of Newark Only*
WINN, a subsidiary corporation of NJRA, manages a $10 million revolving loan program for redevelopment efforts in Newark’s neighborhoods. Funds can be used for commercial and mixed-use projects directly related to comprehensive redevelopment initiatives including: pre-development, site preparation, acquisition, demolition, permanent financing, loan guarantees, and construction financing. Rates are typically below market rate. Terms are determined base on the assets being financed, as well as the financing needs for sustainable project development.
To learn more about New Jersey’s financing programs or to get a financial package that meets your needs, call 866-534-7789. We’ll put together a customized proposal detailing every advantage New Jersey can offer your company.
