New Jersey EDA Boosts Aid to Smaller Businesses

NJEDA has unveiled a series of upgraded programs targeted specifically toward smaller companies. And the emphasis is squarely on those involved in technology, especially companies trying to bring new technology-related products to market.

"What we're doing, essentially, is reflecting the thinking of the lending community and the borrowers," explains Anthony R. Coscia, chairman of NJEDA. "It also reflects our own assessment of the market in terms of the state's expanding investment needs."

Specifically, the project funding limit under the Statewide Loan Pool for Business program has been bumped up from $3 million to $5 million, with EDA's own participation level raised to $500,000. Guarantees can be up to 30% of the bank loan share, with maximum loan and guarantee exposure of $1 million for working capital and $2 million for fixed asset loans.

EDA's guarantees of bank loans will generally stay at 30% to 50%, depending on geographic location, for non-targeted areas. But in keeping with the state's effort to focus development on urban areas, and on targeted borrower categories, the guarantees can now be as much as 80%. For direct loans, the previous max of $250,000 has been upped to $500,000 for working capital and $750,000 for fixed assets.

Finally, new maximums have been set for everything from seed capital, specifically targeting high-tech firms, and for joint financing with banks for second-stage technology businesses under the New Jersey Technology Funding Program. The upper limit for the latter is $5 million.

"Our objective is to make it easier for targeted sectors like high-tech and urban businesses to get the financing they need," reiterates Caren Franzini, executive director of the agency. Among firms that have recently taken advantage of NJEDA's deep pockets are Advanced Power Technologies in Newark; the Credo Corp. (on-line e-commerce) in Princeton; and Princeton Multimedia Technologies Corp., a healthcare software company.