EDA Board Action Supports Christie Administration Efforts to Spur Small Business Growth and Community Investment

TRENTON, N.J. (March 15, 2012) – The Board of the New Jersey Economic Development Authority (EDA) today approved a $500,000 loan to support the Greater Newark Enterprises Corporation (GNEC), a microlender serving the northern New Jersey small business community.  The EDA’s loan requires a commitment of $500,000 in additional capital, stimulating a total of $1 million in new funding for the GNEC.

“Supporting the growth of small businesses is essential to revitalizing communities, stimulating local economies and creating new jobs for area residents,” said EDA Chief Executive Officer Caren S. Franzini. “With this loan, the EDA is able to strengthen the lending capacity of the GNEC and further expand the state’s support of small, women and minority-owned enterprises.”

Formed in 2007, the GNEC is a certified Community Development Financial Institution (CDFI) that provides financial assistance and training to small businesses in a variety of areas, including financial literacy for entrepreneurs, business planning and business management across a myriad of industries. GNEC has graduated more than 150 individuals from its entrepreneurial training curriculum, and has provided approximately $1.5 million in financing to small businesses throughout northern New Jersey.  Of the loans provided, 93 percent were to minority-owned enterprises and 70 percent of those businesses were located in underserved communities. 

“With a strong commitment and dedication to assisting small businesses, the GNEC provides financing that makes a remarkable contribution to the development of new businesses and to the expansion of existing businesses,” said GNEC Executive Director Mike Wall. “These borrowers could not qualify under regular banking requirements, but because of the GNEC lending activities, small businesses are opening and expanding in northern New Jersey.  EDA’s loan will help ensure we are able to continue to provide that critical support.”

The Loan to Lenders program, targeted to established CDFIs, is funded with $3 million from New Jersey’s State Small Business Credit Initiative federal allocation, announced by Governor Chris Christie last October. Through the Loan to Lenders program, GNEC was approved for a $500,000 loan with a fixed interest rate of two percent. The 15 year loan will require interest-only payments for the first five years. The proceeds of the loan will be lent to small businesses in northern New Jersey. The GNEC expects the loan to generate 40 new permanent jobs.

The Christie Administration has demonstrated an unprecedented commitment to growing business in New Jersey.  The EDA is part of the state’s results-driven Partnership for Action.  Created by Governor Chris Christie and led by Lieutenant Governor Kim Guadagno, the Partnership is the hub for all economic development activity in New Jersey.  It is comprised of three interconnected and highly focused organizational elements, which include Choose New Jersey, Business Action Center, and EDA.  The Partnership’s goals include attracting new business, and helping existing businesses thrive, in New Jersey by focusing on relationship building and person to person outreach, promoting the state’s incentives and resources, developing pro-growth policies, and assisting businesses in navigating state government and programs.

To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov. For information on the GNEC, visit www.gnecorp.org.

Supports Christie Administration’s Focus on Growing State’s Technology Industry

TRENTON, N.J. (March 15, 2011) – New Jersey continued its efforts to support the growth of the state’s technology industry with the approval today of two new venture fund investments.  The Board of the New Jersey Economic Development Authority (EDA) voted to invest $3 million in Osage Venture Partners III and $2 million in NextStage Capital II. The EDA’s limited partnership investments were funded with $5 million from New Jersey’s State Small Business Credit Initiative federal allocation, announced by Governor Chris Christie last October.  

“Venture capital offers promising young companies an infusion of cash to help bring products to market or expand product lines,” said EDA Chief Executive Officer Caren S. Franzini. “These investments are designed to attract and develop technology businesses and support job growth in New Jersey.”

One of the ways the EDA helps increase available capital for emerging technology companies is by investing as a limited partner in venture capital firms that invest in New Jersey-based enterprises. Investments made by the EDA are expected to earn a reasonable rate of return, which is measured in financial terms and by job growth. Gains resulting from these investments are utilized to offer new funding opportunities to support New Jersey businesses. Prior to today’s action, EDA had approved investments in nine venture capital funds totaling $34 million. To date, the New Jersey technology businesses that have received investments from these funds have attracted more than $850 million in private capital.

Franzini noted that in addition to supporting New Jersey businesses, the new investments also will help to strengthen the state’s venture capital network.  Both Osage and NextStage have committed to opening new offices in New Jersey.

Osage Venture Partners III, part of the Osage Ventures family of funds, was formed in May 2011 and will be a $60 to $90 million fund. The fund’s aim is to make a minimum of 15 investments in early stage technology companies, with a commitment to invest at least $9 million in New Jersey-based companies. These investments are expected to generate between 75 and 250 new jobs in the state. The fund will target enterprise technology companies, including providers of general business software, cloud computing, healthcare information and infrastructure management software.  Osage plans to establish a new office in Branchburg to manage the fund. 

NextStage Capital II is a newly created, $40 million fund that will be part of the NextStage Capital family of funds. The fund will seek to make 15 investments in early stage technology companies, with a minimum of $6 million committed to technology companies in New Jersey. These investments will create an estimated 120 new jobs. NextStage also expects to lease space in the Rutgers-Camden Business Incubator at the EDA’s Waterfront Technology Center at Camden. As a result, NextStage will actively pursue investments in southern New Jersey. The fund will focus on early stage, business-to-business, information technology companies, including providers of internet media, communication software, security software and IT infrastructure technology. 

The two venture funds were chosen through a competitive solicitation process that ran from November 16, 2011 through December 23, 2011. The solicitation required that the candidates have a focus on New Jersey and provide Series A investments in companies with less than $3 million in revenues and fewer than 500 employees.

These investments follow the EDA Board’s January authorization of a $2 million investment in New Jersey-based Edison Venture Fund VII, which targets financial, healthcare information, interactive marketing and enterprise 2.0 technology companies.  The fund, which has obtained nearly $206 million in committed capital to date, is seeking to invest in 25 to 30 expansion stage companies with a $300 million target size for the fund.

The Christie Administration has demonstrated an unprecedented commitment to growing business in New Jersey.  The EDA is part of the state’s results-driven Partnership for Action.  Created by Governor Chris Christie and led by Lieutenant Governor Kim Guadagno, the Partnership is the hub for all economic development activity in New Jersey.  It is comprised of three interconnected and highly focused organizational elements, which include Choose New Jersey, Business Action Center, and EDA.  The Partnership’s goals include attracting new business, and helping existing businesses thrive, in New Jersey by focusing on relationship building and person to person outreach, promoting the state’s incentives and resources, developing pro-growth policies, and assisting businesses in navigating state government and programs.

To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov.

UNION, NJ – Starting a small business is a risky proposition.  Thirty percent of all new operations go out of business within two years and that number increases to just about 50% in five years.  How can a would-be entrepreneur come out on the winning end of those odds?

The answer is solid preparation and a realistic assessment of the market before the ‘open for business’ sign is hung.  That’s why UCEDC, a statewide nonprofit economic development corporation, is offering an intensive six-week workshop for start-up businesses (those in the idea/planning phase or in operation less than a year).  The next session of Entrepreneurship 101:  are you really ready to start your business? is scheduled for Thursday evenings (6:00 – 9:00 pm), April 12 – May 17, 2012 at UCEDC’s headquarters in Union.

A Reality Check for a Business Dream

Participants will be guided through a real-world assessment of their business idea and market feasibility as well as their own ability to handle the demands of business ownership.  The steps to opening a business in New Jersey, choosing a legal structure, developing a business plan and establishing cost, revenue and cash flow projections will be addressed in a variety of interactive exercises. 

“Being a business owner is hard work and this workshop is equally demanding,” says Erich Peter, UCEDC’s Director of Training. “But we’re going to work with you both in and outside of the classroom to make sure that the class material is relevant to your specific needs.  And, we stick with our graduates for 12 months, providing free mentoring and counseling services.” 

Lasting Insights Gained in Six Weeks 

Recent graduate of the entrepreneurial program, Donna Schmidt, RN, owner of Cleansing Waters, a colon hydrotherapy practice in Westfield, credits the workshop with showing her how to carefully scrutinize the value and effectiveness of marketing and advertising options.  “When you start your own business, everyone’s hand is in your pocket,” she says.  “Had I not gone to the workshop,  I would probably still be all over the map, thinking every offer that came to me was the next big thing to get my business out there.”

Olive Lynch enrolled in the workshop to take advantage of the individualized mentorship.  Her Plainfield-based company, Green Waste Technologies, utilizes a unique approach to creating biofuel from food waste.  “I knew this idea was big and I wanted to get as many good ideas and as much help as I could, ” Lynch recalls. “Erich (UCEDC director of training, Erich Peter) really helped me understand how to assess the value of my company and my efforts and that’s kept me from entering into some unwise business relationships.”

Entrepreneurship 101 is a component of UCEDC’s Entrepreneurial Training Initiative, an ongoing small business training effort, offered in partnership with the New Jersey Economic Development Authority.   Sessions for start-ups and established businesses are held throughout the state. 

Registration is now open for Entrepreneurship 101.    Complete information can be found on the UCEDC website  at www.ucedc.com/events  or by calling 908-527-1166.