Edison Innovation R&D Fund

NJCST provides funding of up to $500,000 to New Jersey technology companies, in partnership with New Jersey research universities, companies or institutions, for proof-of-concept research and development activities necessary for commercialization of an identified technology. The Edison Innovation R&D Fund provides early-stage financing and commercialization support for New Jersey life sciences or technology companies at a higher-risk earlier stage than other state agencies or venture capitalists are able to provide; and advance companies to the point that they are eligible for lower-risk state financing and loans.

Companies that are awarded the Edison R&D Fund by NJCST can receive up to 20% of the approved NJCST grant, not to exceed $100,000, from the EDA in equity-like financing for non-R&D related costs. Terms for this supplemental financing are non-negotiable.

Technology Fellowship Program

NJCST pays the salary of recent doctoral graduates of New Jersey universities to work in small New Jersey technology companies, providing companies with new talent and expertise. The Technology Fellowship Program provides doctoral graduates with valuable entrepreneur experience, and helps create more high-quality high-tech jobs in New Jersey. The Fellowship provides a $65,000 salary for the first year, $75,000 salary for the second year, with an additional $10,000 each year to be spent on career development expenses for the postdoctoral fellow.

Incubator Seed Fund

The Incubator Seed Fund is designed for incubator client companies with technology-based businesses located in the NJCST-supported incubator network. The Seed Fund will provide, on a competitive basis, funds to assist emerging businesses achieve a critical milestone in their commercialization path. The Commission’s Incubator Seed Fund is designed to accelerate the business development process and produce significant value for the companies receiving the awards. Awards range from $20,000 to $50,000.

SBIR/STTR Training Assistance
NJCST offers a series of training sessions throughout the year to help entrepreneurs gain the necessary tools to successfully submit SBIR/STTR Phase I and Phase II proposals to one of the 11 federal agencies. SBIR/STTR training sessions focus on different agency solicitations and topics, and cost a nominal fee to attend. All New Jersey companies, entrepreneurs and students interested in the SBIR/STTR process are eligible and encouraged to attend.

SBIR Bridge Grant Program

NJCST provides bridge grants as high as $50,000 to companies which have completed a SBIR Phase I award and are awaiting a SBIR Phase II from a federal agency to help bridge the funding gap that occurs. This SBIR Bridge Grant Program increases the success and maximizes the growth of small New Jersey companies in moving from Phase I to Phase II.

Technology Incubators
The Commission supports 12 technology business incubators throughout the state. Incubators provide a professional business environment, administrative support and significant networking opportunities within the entrepreneurial community. According to the National Business Incubation Association, start-up companies in incubators have a higher success rate than those developing without the critical business assistance provided by incubators.

Stem Cell Research Grant

The New Jersey Stem Cell Research Grant program was created to encourage development of cell-based therapies for patients suffering incurable diseases and generate a surge in technological innovations and economic development. New Jersey was the first state to publicly fund human embryonic stem cell research (hESC), including hESC line prohibited from use in federal funding restrictions. Individual research grants are available in amounts up to $300,000.

Technology Business Tax Certificate Transfer Program

The Technology Business Tax Certificate Transfer Program enables approved, unprofitable Technology and Biotechnology Businesses with 225 or less employees to sell their unused Net Operating Loss (NOL) and Research and Development Tax Credits (R&D Tax Credits) to unaffiliated, profitable New Jersey corporations for at least 75% of the value of the tax benefits.

Edison Innovation Commercialization and Growth Fund

The Edison Innovation Fund helps to create, sustain, and grow high-tech businesses in New Jersey, with the goals of:

• Building the capacity of the state’s research colleges and universities in strategic areas that complement economic development,
• Building the entrepreneurial environment of the state,
• Increasing access to early stage capital, and
• Providing specialized assistance to existing mid-sized and large science and technology businesses.

Edison Innovation Commercialization Fund 

• Up to $200,000 in the form of a subordinated, convertible note
• Below-market, fixed interest rate in the range of 4-10%
• May involve deferred interest and/or principal up to 5 years
• Financing "staged in" based upon business- and technology-based milestones, specific to each individual company
• Financing  structure to include a negative pledge on the intellectual property, with a “springing lien” in the event of a default
• Warrants will be taken; no personal guarantees required

Edison Innovation Growth Fund

• Financing from $200,000 to $1 million, with a 1:1 “fresh” cash match
• Structure similar to Commercialization (above)
• Companies must have delivered a "proof of concept" and achieved successful, referenceable, independent beta results
• Both technical and experienced business owners to be part of the management team

Edison Innovation – “Fund of Funds”

• EDA to commit up to $20 million in three to four venture funds focused on NJ early stage technology and life science companies
• EDA investment strategy adopted to ensure venture capital investments are aligned with New Jersey’s Economic Growth Strategy
• Venture funds supported to date include NJTC Venture Fund, Edison Venture Fund, Garden State Life Sciences Venture Fund, NextState Capital, and NewSpring Health Ventures

Tax-Exempt Bonds

As your company continues to grow, you may reach a point where you begin to manufacture your own products. At this point, the EDA can assist you with more traditional financing options, including tax-exempt bonds that can help reduce your borrowing costs.  The EDA sells the bonds and lends the proceeds to manufacturers at low interest rates to finance investments in fixed assets such as real estate acquisitions, machinery, equip ment, and building construction and renovations. Manufacturers can borrow from approximately $750,000 to $10 million. Terms range up to 10 years for equipment and up to 20 years for real estate.

Loans and Guarantees

As companies mature, the EDA will work with other lenders to provide direct loans and guarantees to sustain business growth. The EDA can support growing technology businesses through direct low-interest loans and through guarantees of loans provided by banks and other lenders. These monies can provide working capital to meet operating costs and meet financing gaps in the purchase or construction of facilities and in the purchase of equipment.

Workforce Labor Training Grants

Funding is available for employers wishing to invest in the skill of their New Jersey-based workers in order to create a more competitive global company. This competitive grant program is made possible under the New Jersey Workforce Development Partnership, and is administered by the Office of Grants Operations (Customized Training Unit).

Training can be conducted on-site by qualified instructors for industry-specific skills sets or in a classroom setting at one of New Jersey’s two-year or four-year colleges and universities, vocational-technical schools, or other qualified training providers.

Grants can be for up to $200 per instructional hour, with the average cost of instruction per trainee not exceeding $1,500.  In addition, there must be an employer match of at least 50% toward total program costs.

New Jersey Business Advocacy Team

This group provides specialized financial and technical support services designed to meet the unique needs of businesses considering expansion in or relocation to New Jersey.  The EDA’s Business Advocacy Services Group provides services for project coordination, site selection services and regulatory assistance. This full-service approach produces considerable financing advantages, helping to pave the way for companies seeking to expand or relocate to New Jersey.

Business Employment Incentive Program Grants (BEIP)

The EDA makes grants through BEIP to expanding or relocating life sciences or technology businesses that create 10 or more jobs in New Jersey over the course of two years. Grants may be awarded for up to 10 years and range from 10% to 80% of the total amount of income taxes withheld by the company from new employees hired during the calendar year. The program is now available to a larger range of businesses and grants are targeted to the industries and locations considered important to New Jersey. Companies relocating to New Jersey are ONLY eligible for BEIP grants if the grants themselves are a major material factor in the company’s decision to relocate to the state.