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DIRECT LOANS


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.

DOLLAR 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

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.