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The grant program will support hundreds of micro businesses through low-interest financing
Trenton, N.J. (November 1, 2022) – The New Jersey Economic Development Authority (NJEDA) today announced that it has approved over $11 million to eight lenders and financial institutions through its Main Street Lenders Grant. The Main Street Lenders Grant, which launched in July, awards grants to eligible Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), and other entities that have at least 10 years of experience lending to small and micro businesses.
The Main Street Lenders Grant, which was created under the New Jersey Economic Recovery Act of 2020 and funded with $15 million from the Main Street Recovery Program, offers eligible lenders grants of up to $1.5 million each, with up to $500,000 reserved for technical assistance needs. Entities approved for the grant will provide flexible and low-cost financing through working capital term loans to qualified micro businesses, as well as technical assistance to help micro businesses access capital.
“The Main Street Lenders Grant is another testament to Governor Phil Murphy’s commitment to equity and inclusion and supporting small businesses to ensure economic prosperity in New Jersey,” said NJEDA Chief Executive Officer Tim Sullivan. “Forty percent of the funding to support loans will be set aside for micro businesses in Opportunity Zone-eligible census tracts, allowing underserved areas the chance for continued growth.”
To date, the product has approved grant funding for the following lenders:
Elizabeth Development Company of New Jersey will create a Post COVID Rebound Program (PCRP). The PCRP will offer loans of between $10,000 and $30,000 for existing or startup micro businesses in Elizabeth, Plainfield, and Hillside Township.
Pursuit Lending (formerly New York Business Development Corporation Local Development Corporation) will create a New Jersey Main Street Fund. The New Jersey Main Street Fund will offer loans of between $10,000 and $100,000 to low- and moderate-income and minority/women business enterprises in Opportunity Zones.
Union County Economic Development Corporation (UCEDC) will create the Small Business Assistance Loan (SBAL) to offer loans ranging from $10,000–$15,000 at zero-percent interest and a five-year term for eligible micro businesses. This UCEDC program will require no collateral.
Eastern American Certified Development Company will create three micro loan products: 1) Fast and Easy Loan Program up to $10,000. 2) Growing Loan Program for up to $50,000 in funding. 3) Opportunity Loan Program for up to $100,000 in funding.
Greater Newark Enterprises Corporation will use the lending grant to support its Newark Entrepreneurs of Color Fund and offers loans from $10,000 to $50,000 for unbankable businesses.
Cooperative Business Assistance Corporation (CBAC) will use the grant to provide working capital loans from $10,000 to $100,000 at a five-percent interest rate to qualified entities with a credit score at 650 or below.
Regional Business Assistance Corporation (RBAC) will use funding to support existing businesses with capital loans ranging from $10,000 to $100,000. Each of RBAC’s loans will carry a two percent interest rate with a seven-year term.
“Local lenders were paramount to our ability to reach and support New Jersey’s smallest businesses during the COVID-19 pandemic and they remain vital partners in our efforts to build a stronger, fairer, and more equitable economy,” said NJEDA Program Manager – Business Banking Naimah Marshall. “Through the Main Street Lenders Grant, we are enhancing our ability to connect micro businesses that often have difficulty accessing traditional financing with the resources they need to succeed.”
About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the state’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the state and strengthen New Jersey’s long-term economic competitiveness.
Child Care Centers Can Begin Applying for Grants of up to $200,000 on November 15, 2022
First Lady Tammy Murphy joins NJEDA leadership and other government and elected officials outside ABC Daycare Academy in Bloomfield to announce the launch of the Child Care Facilities Improvement Program. From left: ABC Daycare Academy Owner Anna Hareza, First Lady Tammy Murphy, Congresswoman Mikie Sherrill, Senate Majority Leader Ruiz, NJEDA Chief Executive Officer Tim Sullivan, Executive Vice President of Economic Security Tara Colton, and New Jersey Department of Children and Families Assistant Commissioner for Legal, Regulatory and Legislative Affairs Brian Ross.
BLOOMFIELD, N.J. (October 26, 2022) – New Jersey First Lady Tammy Murphy today announced that the New Jersey Economic Development Authority (NJEDA) will begin accepting applications for grants from the $54.5 million New Jersey Child Care Facilities Improvement Program on Tuesday, November 15, 2022. Building on the Murphy Administration’s comprehensive strategy to support the state’s vital child care sector, Phase 1 of the program will provide nearly $15 million in grants of up to $200,000 to licensed child care centers in New Jersey to cover the costs of facility improvements.
“Every New Jersey family deserves reliable, safe, high-quality child care, a critical part of Nurture NJ and our work to make New Jersey a leader in child health. This program will help to ensure facilities all over the state provide our children – and most especially our children in underserved communities – with high-quality early childhood environments that have lifelong impacts,” said First Lady Murphy. “The NJ Child Care Facilities Improvement Program will provide the capital for child care facilities to make essential improvements that will elevate their ability to care for this and future generations.”
First Lady Murphy joined NJEDA leadership and other government and elected officials outside ABC Daycare Academy in Bloomfield for the announcement.
“I am thrilled that New Jersey is using federal funds I secured in the American Rescue Plan to implement innovative programs like the Child Care Facilities Improvement Grant,” said Representative Mikie Sherrill (NJ-11). “At the local, state, and federal level, we are working together to make childcare more accessible and affordable for New Jersey families because we understand its importance to a thriving economy and workforce. I want to thank First Lady Tammy Murphy, NJEDA CEO Tim Sullivan, Senate Majority Leader Teresa Ruiz, and ABC Daycare Academy Owner Anna Hareza for their work on this important issue.”
As part of New Jersey’s whole-of-government approach to supporting the child care sector, the legislature passed and Governor Murphy signed the Child Care Revitalization Fund into law, appropriating $100 million in American Rescue Plan (ARP) Coronavirus State and Local Fiscal Recovery Funds to support the sector, including $54.5 million for NJEDA to provide facility improvement grants and technical assistance to child care providers. Senate Majority Leader Ruiz (D-Essex), who participated in today’s event, was a co-sponsor of Child Care Revitalization Fund. Funding for Phase 1 of the NJ Child Care Facilities Improvement Program is supported through the ARP funding, as well as an additional $4.45 million in state funding.
“School facilities have a profound impact on both teacher and student outcomes. When we invest in our children by making their learning environments healthy, safe and flexible to adapt to complex student needs, the rewards far exceed the cost of the initial investment,” said Senator Ruiz. “By lessening the financial burden on child care providers, these funds will facilitate the expansion of classroom space which increases student headcounts as well as allow for the purchasing of other critical infrastructure needs such as replacing windows and/or flooring or even playground equipment. Every dollar invested offers a $4-$9 return in individual and community benefits. This program, along with other initiatives moving through the legislature, represents a commitment to improving early childhood education in ways that will work to reduce the achievement gap and greatly benefit future generations.”
“Under Governor Phil Murphy’s leadership, New Jersey is making significant investments to bolster the child care sector, which is crucial to our economy and the ability of New Jersey parents to return to work and have the peace of mind of knowing their children are well cared for,” said NJEDA Chief Executive Officer Tim Sullivan. “These grants will help child care centers that are the backbone of our economy to emerge better positioned to care for our children and families.”
Sullivan noted that child care providers serving low-income children through the New Jersey Department of Human Services (NJDHS) Child Care Assistance Program were significantly impacted by COVID. That program provides subsidies to offset the cost of child care for families at 200 percent or below the federal poverty line. Funding in Phase 1 of the program will be limited to child care centers serving children receiving this assistance. Additionally, 40 percent of the Phase 1 funding will be set aside for child care providers in Opportunity Zone-eligible census tracts, ensuring funding is targeted toward the state’s low-income communities.
“We are excited to work in partnership with the NJEDA to make these grants available to child care providers in the state. Child care providers were among some of the hardest-hit by the COVID-19 pandemic, and are still working to overcome the lingering effects of the pandemic, all the while meeting the needs of New Jersey’s working families. These grants will help providers make facility improvements that they may not otherwise be able to afford, so they can provide high-quality early childhood learning environments for our youngest residents. This is in addition to the stabilization grants that Human Services is providing to help providers pay for operational expenses and the $1,000 hiring and retention bonus payments to assist with staffing. Safe, affordable and reliable child care in New Jersey is vital to our economy and for working families. Under the leadership of Governor Murphy, the state has made significant investments to support the child care industry, and we will continue to work to support this critical workforce and the families that rely on them,” said NJDHS Commissioner Sarah Adelman.
Child care providers typically face thin profit margins, often forcing them to forego necessary facilities upgrades, repairs, and maintenance. Phase 1 of the NJ Child Care Facilities Improvement Program will provide grants between $50,000 to $200,000 to pay for improvements that foster high-quality early childhood learning environments. These interior and exterior improvements could include, but are not limited to, installing energy efficient windows, creating additional classroom space, purchasing new playground equipment, replacing flooring, remediating environmental hazards such as lead or mold, or putting in child-height sinks or toilets. A complete list of eligible uses and details on the program can be found at https://www.njeda.gov/child-care-improvement-program/.
“Every child deserves to go to a world-class child care facility, regardless of a family’s income,” said NJEDA Executive Vice President of Economic Security Tara Colton. “The NJ Child Care Facilities Improvement Program will provide funding to help ensure that all New Jersey children have access to high quality early learning environments while giving child care providers access to funding to upgrade their facilities, allowing them to focus on what is most important: caring for our state’s children.”
“The NJ Child Care Facilities Improvement Program will allow child care providers to leverage public resources to upgrade and improve, and to create and sustain safe, nurturing environments intended to help develop young minds,” said NJ Department of Children and Families (NJDCF) Commissioner Christine Norbut Beyer. “This investment in state-of-the-art child care programs will encourage healthy growth and development for New Jersey’s children, and will strengthen the child care options available to working families. This is a welcome inclusion in efforts to support families and children in New Jersey to thrive.”
Applicants may own or lease the space that will be improved and they must currently enroll, or have enrolled in the 12 months prior to the date of application, at least one child receiving support through the NJDHS Child Care Assistance Program. Child care providers must also commit to enroll in NJDHS’ quality rating and improvement system, Grow NJ Kids. While the NJEDA plans to expand the NJ Child Care Facilities Improvement Program to home-based child care providers registered with NJDHS in subsequent program phases, this inaugural phase will only be open to child care centers licensed by the NJDCF. Full eligibility criteria and resources for applicants can be found at https://www.njeda.gov/child-care-improvement-program/.
About the NJEDA
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
TRENTON, N.J. (October 26, 2022) – The New Jersey Economic Development Authority (NJEDA) has issued a Request for Information (RFI) seeking information and ideas as it considers establishing a pilot program to attract clean energy manufacturers to New Jersey. The program would help New Jersey capitalize on the manufacturing resurgence taking place nationwide. The RFI can be found at https://www.njeda.gov/bidding/#rfi. Responses are due by November 22, 2022.
RFI responses would help to shape the development of a proposed NJEDA grant or forgivable loan program that would offset the costs for New Jersey companies or institutions that procure clean energy technologies from clean energy manufacturers looking to expand or establish a presence in the Garden State. The goal of this program is to build a pipeline of projects for clean energy manufacturers that are competitive for New Jersey customers, while helping early adopters minimize the costs of implementing clean technologies. The program would also aim to create high-quality manufacturing jobs in New Jersey, make the state a hub for clean energy manufacturing and innovation, and build a diverse workforce in the clean energy sector. It would also help meet the state’s climate and clean energy targets laid out in New Jersey’s Energy Master Plan (EMP). The EMP offers a strategic vision for the production, distribution, consumption, and conservation of energy in the State of New Jersey.
“There has never been a more exciting time to be a part of the clean energy transformation, particularly when it comes to manufacturing innovative technologies needed to create a green economy,” said Jane Cohen, Executive Director of the Governor’s Office of Climate Action and the Green Economy. “New Jersey continues to find new and creative ways to support businesses in this vital sector and the feedback we receive from this RFI will help us continue to attract new manufacturers while supporting those already established within the state.”
New Jersey’s manufacturing output grew at a 5.8 percent annualized pace between the fourth quarter of 2017 and the fourth quarter of 2021, which is more than double the national growth rate of 2.6 percent during that period. This program would be one of several in the manufacturing portfolio supported by more than $35 million in New Jersey’s Fiscal Year 2023 budget designed to spur capital investment, increase the adoption of new technology, attract new suppliers to the state, and expand workforce development opportunities.
“This pilot program would benefit entities that sit at the intersection of clean energy and manufacturing, two vital sectors as we work to achieve Governor Phil Murphy’s goal of establishing New Jersey as a leader in innovation,” said NJEDA Chief Executive Officer Tim Sullivan. “Direct input from stakeholders with perspectives on manufacturing innovative clean energy technologies will enable us to continue make strategic investments to address their needs and positions them well for the future.”
The RFI seeks information from individuals and/or entities with perspectives on manufacturing clean energy technologies (supply) and/or accelerating their adoption (demand). Interested stakeholders in clean energy technologies, clean technology manufacturing, and/or businesses interested in, or that might benefit from, the adoption of new clean energy technologies that may still have a higher market cost are encouraged to respond.
Sullivan noted that issuance of the RFI comes just days after Governor Murphy announced the NJEDA’s plans to create a $20 million New Jersey Manufacturing Voucher Program (NJMVP) to bolster New Jersey’s manufacturing sector. That program will focus on New Jersey manufacturers within targeted industries that will purchase equipment to integrate advanced or innovative technologies, processes, and materials to improve the manufacturing of their products. The NJMVP will offer grants valued at 30 to 50 percent of the cost of eligible equipment, including installation, up to a maximum award amount of $250,000.
All questions concerning the RFI announced today must be submitted in writing no later than 1:00 p.m. EDT, on Thursday, November 3, 2022, via e-mail to: earlyadopters@njeda.com. The subject line of the e-mail should state: “Questions-2022-RFI-OET-152.” Answers to questions submitted will be publicly posted on the Authority’s website on or about Thursday, November 10, 2022, at http://www.njeda.gov/Bidding-Opportunities-General/Economic-Transformation-RFIs as Addendum. It is the Respondent’s responsibility to check this website regularly for updates.
About the NJEDA
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
Provides $10 Million in Grant Funding for Real Estate Development and Public Space Activation Projects
TRENTON, N.J. (October 14, 2022) – The New Jersey Economic Development Authority (NJEDA) Board this week approved the creation of the Activation, Revitalization, and Transformation (ART) Program, which establishes a one-time grant opportunity to support economic recovery in urban areas with mass transit that have faced economic harms from the reduction of commuters due to the COVID-19 pandemic. Funded at $10 million, the ART pilot program will address these harms through the creation of two programs, one for Real Estate Rehabilitation and Development projects and one for Public Space Activation initiatives.
“Supporting New Jersey’s iconic cities is an essential component of our state’s successful economic recovery,” said Governor Phil Murphy. “Through catalytic investment in real estate development and public space activation projects, the ART Program will help municipalities most impacted by the COVID-19 pandemic thrive long into the future.”
Approved by the New Jersey Joint Budget Oversight Committee last November, the ART program utilizes American Rescue Plan (ARP) State and Local Fiscal Recovery Funds (SLFRF) to reactivate and revitalize Atlantic City and Newark’s commercial corridors in the wake of COVID-19. Commercial corridors play a vital role in both urban and rural geographies, serving as economic engines for communities by providing jobs that keep money circulating in the local economy, offer goods and services for residents, and power entrepreneurship as well as wealth building. They also serve to foster arts and cultural activities, which drive dynamic, thriving communities. To mitigate the economic impacts of COVID-19 and support the development and recovery of New Jersey’s commercial corridors, the ART Program will invest in the infrastructure, capacity building, and resources necessary to help Atlantic City and Newark recover from the pandemic and thrive for years to come.
To establish this program, the NJEDA will enter into two Memoranda of Understanding, one with the New Jersey Department of Community Affairs and one with the New Jersey Casino Reinvestment Development Authority, each for five million dollars of SLFRF funds.
The ART program establishes a competitive grant program that will provide $9.75 million in total funding for Real Estate Rehabilitation and Development and Public Space Activation programming that will be split evenly among Newark and Atlantic City. ART’s Real Estate Rehabilitation and Development program will account for up to 70 percent of the total program funding ($3.4125 million per city) to support project-specific hard and soft costs that revitalize commercial corridors and incentivize catalytic development. ARTs Public Space Activation program will account for up to 30 percent of the total program funding ($1.4625 million per city) to support public space activation initiatives such as placemaking, events, public art installations, signage, streetscape improvements, and small business support.
“The ART Program serves as a critical investment in New Jersey’s economically vital commercial corridors, which due to the COVID-19 pandemic, have experienced decreased capacity, foot traffic and revenue during the transition to remote work,” said NJEDA Chief Executive Officer Tim Sullivan. “Governor Murphy’s leadership is advancing the robust recovery of New Jersey’s commercial corridors that will ensure strong, resilient, and equitable economic futures for both Newark and Atlantic City.”
NJEDA Chief Community Development Officer Tai Cooper noted that the arts industry contributes $23 billion to New Jersey’s economy, representing nearly four percent of the state’s gross domestic product.
“The ART program will drive meaningful community engagement by convening local developers and artists with the business community,” said Cooper. “The arts are an essential thread in the fabric of creative placemaking and the ART program will illuminate New Jersey’s rich and storied legacy in both the performing and visual arts.”
About the NJEDA
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
Loew’s Theatre in Jersey City Will Leverage Tax Credits to Rehabilitate Historic Theater
TRENTON, N.J (October 12, 2022) – The New Jersey Economic Development Authority (NJEDA) Board today approved the award of Historic Property Reinvestment Program (HPRP) tax credits to support the rehabilitation of Loew’s Theatre in Jersey City. This project, which marks the first award under the HPRP, is expected to result in the complete rehabilitation of the historic theater for use as a live performance, movie, and entertainment venue. The Board authorized the award of $42.27 million in tax credits, representing 45 percent of the eligible cost under the project, which has an estimated total cost of $110 million.
Created under the New Jersey Economic Recovery Act of 2020, the HPRP’s main focus is historic preservation as a component of community development, aiming to attract long-term private investment into New Jersey while preserving historic properties throughout the state.
“By supporting projects like the revitalization of Loew’s Theatre into vibrant community assets, we are ensuring the long-term growth of local economies while preserving the history of iconic properties within New Jersey’s neighborhoods,” said Governor Phil Murphy. “New Jersey’s rich entertainment history is one of our greatest assets and it is imperative that we continue to invest in our communities and enable them to maintain their historic structures.”
The HPRP is designed to work in conjunction with the Federal Historic Tax Credit Program to encourage and bolster long-term private investments focused on the rehabilitation of existing identified historic structures throughout New Jersey. The program incentivizes work that can significantly contribute to the revitalization of cities and downtowns into more vibrant magnets for people and investment, while preserving often underutilized historic properties and returning them to productive use.
“The long-awaited revitalization of Loew’s Theatre will be a tremendous economic driver that will lead to upholding the historic integrity of the property while offering new generations of New Jerseyans access to the performing arts,” said NJEDA Chief Executive Officer Tim Sullivan. “Governor Murphy has prioritized equitable and inclusive economic development and the HPRP is an important tool in achieving that goal as we work to improve the quality-of-life for residents statewide.”
As planned, the proposed Loew’s Theatre Rehabilitation Project will be a state‐of‐the‐art, 21st-century event space that will enhance the cultural, artistic, and community vibrancy of the Journal Square district, fostering economic prosperity in the neighborhood. Upon completion, the theatre is anticipated to host around 150 events a year, in addition to several community programming events.
“The NJEDA’s announcement today is a testament not only to the growing value of historic redevelopment, but also to the importance of preserving arts and culture in our communities,” said Jersey City Mayor Steven Fulop. “The Loew’s Theatre has stood for nearly 100 years as a major focal point here in Hudson County, and its transformation into an entertainment hub is a pivotal point to the continuing renaissance underway in Jersey City and our efforts to revive Journal Square. We are very grateful to Governor Murphy and the NJEDA for their commitment to seeing historic properties turned into thriving cultural centers and for recognizing our efforts to restore this critical community asset.”
Mayor Fulop noted that the rehabilitation work to Loew’s Theatre includes the building’s exterior, all public spaces, stage and support spaces, and modifications and upgrades to the mechanical, electrical, and plumbing systems. In addition, a new three-bay loading dock will be added at the rear of the theater, and a café is to be added along the south alley. Significant finishes at the interior and exterior will be rehabilitated or replicated where it was damaged beyond repair. All work is being reviewed by the Jersey City Historic Preservation Commission, the New Jersey Historic Preservation Office, and the National Park Service, and will follow the Secretary of the Interior’s Standards for Rehabilitation of Historic Properties.
“The HPRP marks the first time that New Jersey has offered support specifically designed to rehabilitate historic buildings for 21st century use while ensuring that their historic integrity remains in place, so this is a very exciting day for Historic Preservation in the state,” said NJEDA Director of Historic Preservation Aidita Milsted. “We have seen a great response to this program and look forward to bringing additional projects from Community Development before the NJEDA Board in the coming months.”
Milsted noted that the 2023 application round for the Historic Property Reinvestment Program is expected to begin accepting applications for Regular and Transformative Projects on Wednesday, February 1, 2023 at 10:00 a.m. The application round will close at 2 p.m. on Monday, April 3, 2023.
About the NJEDA
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
Program Connects Property Owners with Funding Needed to Implement Energy Efficiency Measures
TRENTON, N.J. (October 12, 2022) – The New Jersey Economic Development Authority (NJEDA) announced today that it will hold a virtual information session on Thursday, October 20 to provide an overview of the Garden State Commercial Property Assessed Clean Energy (C-PACE) Program and to gather community feedback about specific elements of the program. The Garden State C-PACE Program, which is currently under development, will further the Murphy Administration’s commitment to battling climate change by helping businesses, non-profits, and multi-family residential developers and property owners overcome the financial hurdles of implementing energy efficiency, renewable energy, and climate resiliency measures.
The information session will take place on October 20 at 1:00 p.m. Registration is open now at https://tinyurl.com/NJ-C-PACE. In addition to providing details about the program, the NJEDA will also seek public input on topics related to the creation of the Garden State C-PACE Program during the information session. These topics include:
How to incorporate the financing of new construction projects into the program; and
How to effectively engage municipalities to participate in the program.
Authorized by legislation signed by Governor Phil Murphy last year, the Garden State C-PACE Program will provide a new form of financing to property owners for renewable energy, energy efficiency, water conservation, and certain types of resiliency-related improvements for New Jersey. The program works by enabling eligible commercial, industrial, agricultural and certain multi-family residential real property owners to access financing to undertake these kinds of improvements on their properties and repay the financing through the payment of an additional assessment to their municipality, similar to their real property tax, sewer, or water bill.
C-PACE assessments are a tool which municipalities levy on real estate parcels to serve valuable public purposes. C-PACE builds on a long history of using such assessments and serves a public purpose through reducing energy costs, stimulating the economy, potentially improving property valuation, reducing greenhouse gas emissions, and creating jobs. Over the past decade, C-PACE programs in more than two dozen states around the country have proven an effective tool to attract private capital into the renewable energy, energy efficiency, and resiliency markets.
Interested stakeholders who are unable to attend the information session but would like to provide feedback are encouraged to email GardenStateCPACE@njeda.com with their input.
About the NJEDA
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
Program Offers Non-Dilutive Funding for Working Capital or Research
TRENTON, N.J. (October 11, 2022) – Twenty-four technology and biotechnology companies that are in the building and investing stages of their business have been approved to participate in the state’s Technology Business Tax Certificate Transfer Program, more commonly known as the Net Operating Loss (NOL) Program, the New Jersey Economic Development Authority (NJEDA) announced today. Combined, these companies were approved to receive a total of approximately $75 million through the program to fund working capital or research and development (R&D), the maximum amount available through the program.
Now in its 23rd year, the NOL Program enables participants to sell their New Jersey net operating losses and unused R&D tax credits to unrelated profitable corporations for cash. The NJEDA and the New Jersey Department of Treasury’s Division of Taxation jointly administer the NOL Program, which has routinely been hailed as a “lifeline” by entrepreneurs seeking capital for their companies.
The average award for companies approved to sell their net operating losses through the program in 2022 was over $3.1 million. Thirty-six percent of program applicants are private businesses, while the remaining 64 percent are publicly traded companies. Two applicants are located in an Opportunity Zone, and three are located in an Innovation Zone. Three of the 24 approved companies are participating in the NOL Program for the first time this year. To date, more than $1.17 billion in funding has been distributed to over 570 technology and life sciences companies since the program’s inception in the late 1990s. The complete list of approved participants can be found following this news release.
“One of the many advantages of the NOL Program is that it enables growing companies to obtain cash without sacrificing equity,” said NJEDA Chief Executive Officer Tim Sullivan “Bolstering the amount of extra capital that these businesses can use to create jobs, buy new equipment, or further R&D is a key way that we are working to fulfill Governor Phil Murphy’s goal of cementing New Jersey’s role as a national leader in innovation.”
In January 2021, Governor Murphy signed the New Jersey Economic Recovery Act of 2020 (ERA) which, in part, increased the program’s annual cap from $60 million to $75 million. It also increased the lifetime cap for an individual applicant from $15 million to $20 million. This marks the second year that technology and life sciences companies have been able to benefit from the expanded NOL Program.
“Legislation created under the ERA has been extremely beneficial to New Jersey’s innovation community and to NOL Program participants in particular,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello. “Companies that had previously maxed out of the program are able to participate once again due to the increased cap the Act provides to individual businesses. That extra capital has been instrumental in helping young companies commercialize their products and bring them to market.”
In addition to being vital to emerging companies, the NOL Program also provides enormous benefits to the profitable companies that are buying the net operating losses and unused R&D tax credits. A profitable company can purchase tax credits at a discount, based on the market price at the time. These tax credits have traditionally traded somewhere between 88 and 94 cents on the dollar. Once purchased, the tax credits can be applied to potentially reduce the buyer’s state tax obligation. The names of the buyers who chose to be publicly listed are on the NOL Program’s website.
Citius Pharmaceuticals is participating in the NOL Program for the first time this year. The Cranford-based biopharmaceutical company is focused on developing and commercializing critical care products with its diversified pipeline consisting of two late-stage assets. In May, Citius Pharmaceuticals announced it would expand the ongoing Phase 3 trial of its proprietary Mino-Lok therapy internationally. Mino-Lok is used to treat patients with catheter-related bloodstream infections. The Phase 3 trial of its oncology asset was completed at the end of 2021. Citius Pharmaceuticals expects to submit a biologics license application for this asset for the treatment of cutaneous T-cell lymphoma (CTCL) by the end of this year.
“Participating in a program that will connect us with cash in a non-dilutive manner will have a positive impact on our company,” said Citius Pharmaceuticals Co-Founder, CEO and Chairman Leonard Mazur. “As a serial entrepreneur, I know that the most successful businesses use every available resource to grow and scale. We are grateful to the NJEDA, and the State of New Jersey as a whole, for their commitment to emerging companies like ours.”
CytoSorbents Corporation (Nasdaq: CTSO), a Princeton medical device company focused on treating life-threatening conditions in the intensive care unit (ICU) and cardiac surgery with blood purification, has repeatedly benefited from the NOL Program. The company’s flagship product, CytoSorb®, is approved in the European Union and distributed in 75 countries around the world to treat deadly inflammation common to many lethal conditions in the ICU, such as sepsis and infection, COVID-19, trauma, liver failure, and complications of open-heart surgery, by removing inflammatory toxins from the bloodstream. Just recently, CytoSorbents announced final ISO 13485 certification of its new state-of-the-art manufacturing facility at its headquarters in Princeton that has the capacity to support up to $400 million in sales.
“It’s an exciting time for CytoSorbents as we work to positively impact critical care for patients worldwide,” said CytoSorbents Chief Financial Officer Kathleen Bloch. “The funding that we have received from the NOL Program over the years has been instrumental in our global expansion and was vital to our decision, as a vertically integrated manufacturer, to stay in New Jersey. We greatly appreciate the NJEDA’s ongoing support.”
IoTecha Corp. is a Cranbury-based clean technology company that has developed an integrated smart charging platform, including hardware, software, and cloud-based services, for the electric vehicle charging infrastructure. The company, which was recently listed on venture-capital firm Tracxn’s list of Top Electric Vehicle Startups, has benefited from the NOL Program twice in the past.
“New Jersey’s transformation to a green economy, combined with our ability to access state resources like the NOL Program, has been extremely beneficial to our company,” commentedIoTecha Corp. CEO Oleg Logvinov. “We thank the NJEDA for its continued support and look forward to leveraging the funding announced today to further expand our activities in the state in the years ahead.”
About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
$1 Million Will Be Available to Support Companies Engaged with Federal SBIR/STTR Programs
TRENTON, N.J. (September 30, 2022) – New Jersey startups that are currently involved with, or applying to, the federal Small Business Innovation Research (SBIR) and/or Small Business Technology Transfer (STTR) programs will soon have access to an additional funding source, the New Jersey Commission on Science, Innovation and Technology (CSIT) announced today. CSIT will open applications for the fourth round of its SBIR/STTR Direct Financial Assistance Program on Monday, October 3 at 9:00 a.m. EDT. The program provides a $25,000 to $50,000 funding match to New Jersey-based companies that have received federal SBIR/STTR grants.
The federal SBIR and STTR grant programs provide more than $3 billion each year to small businesses in a variety of technology and life sciences areas that propose innovative ideas that meet specific federal research and development (R&D) needs. The SBIR program enables small businesses to explore their technological potential and provides the means for participating companies to profit from its commercialization. The STTR program funds cooperative R&D partnerships between small businesses and research institutions such as universities, federal R&D centers, or non-profits. The programs are open to U.S.-based, for-profit small businesses with fewer than 500 employees.
Through three prior rounds of its SBIR/STTR Direct Financial Assistance Program, CSIT has awarded a total of $1.9 million to 66 New Jersey companies.
“Each New Jersey startup faces unique hurdles as it works toward commercialization, and helping these young companies succeed is a core part of our mission,” said CSIT Chair Debbie Hart. “Our SBIR/STTR Direct Financial Assistance Program has a proven track-record of supporting startups that are vying for these federal programs by providing funding to support their operations throughout the application process and beyond.”
This fourth round of the program will offer $1 million in grants to New Jersey small businesses in two program components. The first component (Direct funding) will provide $25,000 grants to up to 20 small businesses that have received a federal SBIR/STTR Phase I, Fast-Track, or Direct to Phase II award/contract. The grant is aimed at helping awardees increase intensity of research, strengthen commercialization plans, cover operational expenses, and become more competitive for Phase II funding. The second component (Bridge funding) will provide $50,000 grants to up to ten New Jersey small businesses that have successfully completed Phase I and have applied for Phase II of the federal SBIR/STTR program. The grant will enable the awardees to maintain operations while waiting on Phase II awards and cover general operational expenses directly related to the project/product for which a Federal Phase II award is being sought.
“Each dollar awarded through the SBIR/STTR Direct Financial Assistance Program is a dollar invested directly into New Jersey’s innovation ecosystem,” said CSIT Executive Director Judith Sheft. “We continue to see incredibly high levels of interest in CSIT programs such as this one and are appreciative of Governor Phil Murphy’s and the Legislature’s ongoing commitment to helping us support innovation-focused companies from their earliest stages.”
Sheft encouraged entrepreneurs that are interested in applying to the New Jersey SBIR/STTR Direct Financial Assistance Program to attend an informational webinar on October 11 at 1:00 p.m. to learn about the application process. A link to the webinar will be available at https://tinyurl.com/NJCSIT-Phase-4. A recording of the webinar will also be available on CSIT’s website.
The application, which can be accessed directly at https://application.njeda.com/CSIT, will be open starting October 3, 2022 at 9:00 a.m. until November 14 at 5:00 p.m. EST.
In keeping with the Governor’s vision for inclusive economic growth, applications from businesses located in an Opportunity Zone-eligible census tract or Government Restricted Municipality, minority- or woman-owned businesses or businesses with technology coming out of New Jersey universities are all eligible for points with respect to the scoring criteria. Additionally, applicants who are applying to the Direct Financial Assistance Program for the first time will also receive points. Points will also be awarded to first time federal SBIR/STTR awardees (direct funding) and first-time federal Phase II submitters (bridge funding).
About CSIT In August 2018, Governor Murphy signed legislation re-establishing the former New Jersey Commission on Science and Technology as the CSIT. Comprised of representatives from the public and private sectors, as well as academia, the Commission is tasked with leading the way in promoting the state as a home for academic and technological research, development, and commercialization.
ICGF, a Delaware limited partnership, was created last year to provide growth capital, primarily in the form of equity, to minority- and women-owned businesses located substantially in the Mid-Atlantic region. ICGF is expected to invest an additional $2 in New Jersey-based companies for every $1 the NJEDA commits. This would result in a target of $3 million of capital invested into New Jersey companies.
“ICGF’s investment strategy aligns perfectly with Governor Phil Murphy’s vision to create the most diverse and inclusive innovation ecosystem in the nation,” said NJEDA Chief Executive Officer Tim Sullivan. “Through investments such as this one, we are providing much-needed capital for young companies to leverage as they grow, commercialize, and create good-paying jobs in New Jersey.”
Sullivan noted that, among its myriad resources for New Jersey’s innovation sector, the NJEDA helps increase available capital for emerging innovation-focused companies by investing as a limited partner in venture capital funds that invest in New Jersey-based enterprises. Gains resulting from these investments are then used to offer new funding opportunities to support New Jersey businesses. To date, the NJEDA has committed over $64.5 million to 20 venture capital funds since 1999, not including this latest approval.
The Fund will be managed by Innovate Capital Growth GP, LLC, which is owned in part by The Enterprise Center (TEC). TEC is a nationally recognized community economic development center in Philadelphia that focuses solely on advancing economic growth by connecting minority and women-owned companies with business, capital, and community. TEC operates three federally contracted business centers, including the Camden Cares Business Center. The Camden Cares Business Center employs nearly 10 percent of TEC’s investment and operations professionals. TEC also operates a certified Community Development Financial Institution (CDFI). Across all of these instruments, TEC has helped small businesses earn more than $1 billion in contracts and financing, secure more than $7 million in start-up loans, and created more than 3,000 jobs for the local community.
ICGF managers recently participated in the NJEDA’s New Jersey Founder & Funders event, where they met one-on-one with emerging innovation-focused companies. ICGF Co-Managing Partner and TEC President Della Clark indicated that, as part of ICGF’s growing commitment to New Jersey’s innovation ecosystem, she and her co-managers intend to participate in additional New Jersey Founders & Funders events in the future.
“In recent years, New Jersey has shown a strong commitment to bolstering opportunities for minority- and women-led businesses and we are excited to have the NJEDA as one of ICGF’s investors,” said Clark. “We have been continually impressed with the high-caliber startups we have found in New Jersey and are proud to bolster our ability to support these emerging companies through this fund.”
ICGF was awarded a Small Business Investment Company (SBIC) license from the United States Small Business Administration. Having this designation will enable the firm to access a wider pool of capital from private lenders and banks that may support companies in their portfolio.
About the New Jersey Economic Development Authority The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness. NJEDA is developing the Wind port on behalf of the State.
