"The US Federal Reserve recently announced cuts in interestrates to lower the cost of borrowing, and to help speed economicactivity," says EDA chief executive officer Caren S. Franzini."This action today will allow us to remain a competitive lender andto effectively support Gov. Corzine's economic growthstrategies."

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The EDA plans to adjust its rates downward on some of itsprograms to as low as 2%. Interest rate ceilings would not bealtered by the action. Specifically, the change would impact EDAfinancing assistance that is offered under certain urban loanprograms, as well as direct loans offered through the EDA withvariable rates, which would see a new interest rate floor of 2%instead of the current 3% rate.

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Other small-business and brownfields lending programs offered byEDA, along with fixed interest rate direct loans, would carry newinterest rate floors of 3%. They now have those floors set at a 4%interest rate.

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The EDA is an independent, self-sustaining state financing anddevelopment agency that works to promote economic growth, jobcreation and revitalization activities of New Jersey's communities.That effort comes in the form of financing assistance, technicalsupport and entrepreneurial training, as well as real estatedevelopment activities. Among other things, EDA is developing theNew JerseyTechnology Center along Route 1 in North Brunswick.

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