By Michael L. Diamond/Asbury Park Press
January 12, 2012

New Jersey’s private sector for a decade failed to keep up with even the nation’s anemic job growth. But on pace in 2011 for its best performance since the high-tech bubble ended in 2000, the state appears to have regained its footing, a Rutgers University economist said Tuesday. 

James W. Hughes said New Jersey gained 41,800 private-sector jobs through the first 11 months of the year, allowing it to leapfrog North Carolina and Georgia when measured by employment. 

“The Great Recession and its aftermath have tilted the playing field back in the Garden State’s favor,” Hughes said. 

Hughes spoke at Bella Vista Country Club in Marlboro to about 50 members of the Greater Monmouth Chamber of Commerce.

And he provided evidence that New Jersey’s labor market, like the nation’s, gathered momentum in 2011, at least beginning what looks to be a painstaking task of recovering the 247,600 private-sector jobs the state lost during the recession and the following eight months. 

Hughes’ assessment seemed to jibe with at least one business owner. Suzanne Pease, owner of Ampersand Graphics in Marlboro, works on branding campaigns for small businesses, and she said she is beginning to see signs that the economy is thawing. One example: She recently got a call from a home builder needing help on a project for the first time in two years. 

“The outlook for the year is, we will be a little ahead of where we are now,” Pease said. “I do not expect overnight to be back where we were in 2000.” 

New Jersey’s job market languished even before the recession hit the nation in December 2007, losing 154,000 private-sector jobs for the decade of the 2000s. And it dropped off the list of the 10 states with the most jobs for the first time, Hughes said, falling behind high-fliers North Carolina and Georgia. 

That began to turn in 2010, when the state added 5,200 private-sector jobs, and then picked up steam in 2011, when the state added eight times more through the first 11 months of the year. 

It is unlikely the state will match the 64,600 private-sector jobs it created in 2000, but New Jersey has rejoined the list of 10 states with the highest employment. (Figures for the entire year are scheduled to be released next week.) 

What is at work? Hughes mentioned two factors:

The U.S. labor market is gaining traction. It added 1.9 million private-sector jobs last year, overcoming obstacles such as the tsunami in Japan, the European debt crisis and the inability of Congress to address major issues facing the nation. 

“The Christie Administration has improved the state’s business climate, Hughes said, pointing to surveys of corporate executives in New Jersey. “This is the first time there is a concentrated focus on economic development,” he said. 

The recession’s remnants, however, remain. Among them, New Jersey’s public sector in the 2000s expanded far beyond what the private sector could support, Hughes said. The two still need to find a balance. 

And that won’t be easy. One oddity: New Jersey municipalities added 6,400 jobs through the first 11 months of 2011, he said. 

“It does indicate how difficult it will be to achieve full rebalancing in the state,” Hughes said.

NJToday.net
January 12, 2012

PERTH AMBOY – Wells Fargo announced today that it will provide a $50,000 grant to the Jewish Renaissance Foundation (JRF) of Perth Amboy through its Leading the Way Home Program Priority Markets Initiative which is designed to help stabilize and revitalize neighborhoods. The grant will allow the JRF to complete its NSP program, which is the acquisition, renovation, and resale of five homes that had been foreclosed, to low-moderate income families.

“The Wells Fargo grant is a vital part of our overall goal to create affordable, sustainable, and energy efficient homes where previously they had been foreclosed and vacant,” said Marlene Sigman, JRF’s Director of Housing Development. “In the context of an overall neighborhood revitalization effort, increasing owner-occupied housing is essential.”

This is part of a larger initiative where Wells Fargo will donate $5.53 million in grants to 52 non-profits across the U.S. The Jewish Renaissance Foundation’s PAAC program is a neighborhood revitalization initiative whose core mission is to improve the quality of life of the residents of the Greater Budapest neighborhood by increasing homeownership; making homes functional, beautiful, and affordable, and helping residents take charge of their neighborhood through public safety, economic development, and recreation programs.

“These grants will help stabilize and rebuild local communities,” said Brenda Ross-Dulan, Wells Fargo’s regional president for Southern New Jersey, a territory which includes Central New Jersey. “We want to do what we can to make resources available to support efforts led by nonprofits to revitalize neighborhoods in cities that have felt the effects of financial difficulties and a challenging economy.”

Wells Fargo’s Leading the Way Home community outreach program helps communities stabilize their current housing situation while advancing homeownership to build strong communities into the future. From 2008 through November 2011, Wells Fargo has invested more than $40.8 million in community revitalization programs.

By Ed Beeson/Star-Ledger
January 10, 2012

The New Jersey banking sector this year looks to be a lot more stable than its investment banking counterpart across the Hudson River.

According to a new survey by the New Jersey Bankers Association, 52 banks in the state say they do not expect to lay off any employees this year, but instead keep staffing levels stable.

A near equal number of banks expect to either reduce staff or hire more, the survey found. Six banks said they plan shrink headcount, while seven said they intend to hire, said Mike Affuso, senior vice president and director of government relations for the trade group, who coordinated the survey.

By comparison, most of New York’s investment banking giants, including Citigroup, Morgan Stanley, Goldman Sachs, Credit Suisse, have announced plans to shed thousands of jobs as profits for the sector have taken a nosedive.

The New Jersey bankers survey, conducted in early December, took the responses of chief executives and other senior management at 65 members of the trade group, Affuso said. He did not review the raw data to determine individual banks’ staffing plans.

The poll found that bankers are more positive about the future of New Jersey’s economy than they are about the future of the U.S. While bankers no longer fear a double-dip recession, the survey found that just 14 bankers rated New Jersey’s outlook as between poor and fair, whereas 28 gave the U.S. the same grade, Affuso said.

“Now we’re leading the nation instead of the nation leading us,” he said.

Yet bankers see few bright spots in the lending sector, the survey found. They expect the economy to continue to grow slowly, and commercial and residential lending to be depressed due to a lack of both demand and qualified borrowers. Interest rates also are expected to stay very low for at least the first half of the year, a drag on bank profits, Affuso said.

The refinance market is one area of positive growth, the poll found. Three-quarters of bankers said they are seeing robust demand in the area as borrowers look to take advantage of historic low rates.

By Jared Kaltwasser/NJBIZ
January 3, 2012

Small-business hiring decreased slightly in 2011, according to a new survey, but small-business owners are cautiously optimistic they’ll be able to reverse that trend next year.

A report by the payroll services firm SurePayroll found 50 percent of small-business owners expect to hire in 2012, and 56 percent said they’ll likely raise wages for some or all employees. Two percent of respondents said they would reduce wages.


The firm’s December survey also found year-to-date hiring down 3.2 percent nationwide, and paycheck levels down 0.8 percent for the year.


Laurie Ehlbeck, president of the New Jersey chapter of the National Federation of Independent Businesses, said the idea that fully half of small-business owners plan to hire in 2012 is a bit surprising, given the still-shaky economy. But she said there is a significant amount of optimism locally.


“I think that small-business people are optimistic because our current administration — the governor — has really made businesses, and small businesses in particular, a priority in the last year,” she said.


Ehlbeck said Gov. Chris Christie and the Legislature have done a good job scrutinizing red tape, and recommending or enacting the elimination of unnecessary or redundant regulations. She also praised the administration for seeking input directly from small-business owners.

That said, the real estate market and the wider economy remain worrisome, Ehlbeck said. She said the increasing cost of health care coverage also is hampering businesses’ ability to bring on new employees, as is the difficult lending environment.


“Some of our businesses are hoping they could borrow more money to buy new equipment,” she said.


New, more efficient equipment could help employers serve more customers and hire more workers, but she said it’s hard for businesses to borrow relatively small amounts of money right now, and some small-business owners have had their credit scores damaged by the recession.


“Their credit is not stellar, so they’re not in a good place to borrow money,” she said. “They’re between a rock and a hard place.”


Ehlbeck said making a hire is a big deal for small businesses, so most business owners are staying cautious, and are likely only to hire when increased customer demand requires it.


“The very small businesses are not as apt as maybe a large business is to hire anticipating that things are going to improve,” she said.

By Tom Hester Sr./New Jersey Newsroom
December 30, 2011

New Jersey’s nonprofit organizations now have one-stop access to state resources with the creation of a new state Department of State website, Acting Gov. Kim Guadagno announced Friday.

The New Jersey Nonprofit Information Center portal – nonprofit.nj.gov – offers information on funding sources and other assistance available to nonprofits through the state government.

The portal lists links to department and agency web pages dedicated to nonprofit resources. Resources include funding, volunteer opportunities, forms and guidance documents.

“New Jersey’s nonprofit organizations provide vital services across a range of areas,” Guadagno said. “To help nonprofits fulfill their mission, it makes sense to assemble this information in one convenient place.”

Earlier this year, Gov. Chris Christie signed legislation requiring the Department of State to maintain an accessible directory of state departments and agencies that provide resources to assist nonprofits.

Clicking the state Treasury Department’s link delivers information for starting a nonprofit corporation and tax filing requirements. The link for the state Department of Community Affairs offers grant information and a resource guide. The state Department of Law and Public Safety provides information on grants and registering as a charity.

“The state’s new Nonprofit Information Center is an important first step in making vital funding, volunteer and compliance information more readily available to thousands of New Jersey non-profits,” Linda M. Czipo, director for the Center for Non-Profits, said. “The Center for Non-Profits was thrilled to support the legislation that made this site possible. We thank the Governor and Lieutenant Governor for making it a reality and look forward to continuing to work cooperatively with the Department of State as the site evolves.”

The portal provides news updates information to nonprofits and also offers links to non-state resources, including the Center for Non-Profits, Pro Bono Partnership and Council of New Jersey Grantmakers. There is also access to federal and independent agencies, such as USA.gov for Nonprofits, IRS.gov for Nonprofits, Social Services Purchasing Alliance and others.

Action Demonstrates Christie Administration’s Commitment to Growing Small Businesses in the Garden State

TRENTON, N.J. (Dec. 13, 2011) – In support of the Christie Administration’s commitment to economic growth and entrepreneurial development, the Board of the New Jersey Economic Development Authority (EDA) today took action on four items to further support small business development and encourage job creation in the state. This included doubling the EDA’s line of credit guarantee assistance from $250,000 to $500,000; increasing the number of banks from 15 to 44 that can participate in a new Premier Lenders banking program to expedite loan approvals; and awarding contracts to two firms to provide greater access to technical assistance for small, women and minority-owned businesses in New Jersey. 

“The Christie Administration’s message has been clear from the start – we must provide small businesses with the tools they need to create jobs and help drive New Jersey’s economy forward,” said EDA Chief Executive Officer Caren S. Franzini.  “With today’s action, we have strengthened our capacity to lend and increased our ability to offer critical support to entrepreneurs by utilizing our strong partnerships with New Jersey’s banking community and technical assistance providers.”

Among the actions taken today, the Board voted to double the line of credit guarantee available through the Main Street Business Assistance Program from $250,000 to $500,000.  The program provides financial support to commercial banks in New Jersey to assist in offering loans, guarantees and line of credit guarantees to small businesses and not-for-profit organizations. Additionally, the Board voted to reduce the interest rate for the program from 5-percent fixed to the Five Year U.S. Treasury plus 300 basis points with a 3-percent floor, fixed at closing.

The Board also voted to launch a new Premier Lenders program to be more responsive to the needs of businesses and bank partners.  The new program will help to expedite approvals for small business loans and increase activity with all of the EDA’s banking partners. The streamlined loan approval process involves the EDA reviewing finance applications within five days, the result of which speeds the flow of capital to growing businesses in the state. Quick turnaround time from approval to closing provides a strong incentive for borrowers, while the EDA’s exposure by participating in or guaranteeing a portion of a loan reduces the lender’s risk. 

To expand support of technical assistance for small, women and minority owned businesses in New Jersey, the EDA has dedicated two one-year, $25,000 awards to Rising Tide Capital, Inc. and the Latin American Economic Development Association (LAEDA).  Rising Tide Capital is a not-for-profit organization focused on improving communities and lives by providing a variety of services to women, minority and immigrant entrepreneurs in Hudson and Essex counties. LAEDA is a not-for-profit organization that began its entrepreneurial training in 1990 and will help residents start small businesses and expand existing ones in Burlington, Camden and Gloucester counties. The EDA award compliments a $100,000 grant LAEDA received from the Center for Hispanic Policy, Research and Development at the Department of State. The purpose of the grant is to provide technical assistance and grow Hispanic enterprises in economically distressed communities.

“Outreach to this very early stage entrepreneur in targeted communities will provide the skills, tools and information they need to start and grow into successful micro-enterprises,” Franzini said.  “Our goal is to provide the necessary support to help these entrepreneurs sustain their families and build their own business, while also strengthening their communities.” 

The EDA serves as New Jersey’s “bank for business” as part of the Christie Administration’s New Jersey Partnership for Action, a three-pronged public-private approach to economic development and the starting point for all initiatives, policies and efforts to grow the state’s economy and create quality, sustainable jobs in our communities. Through the New Jersey Partnership for Action, EDA works in conjunction with the Business Action Center, which reports directly to Lieutenant Governor Guadagno and provides the business community with a single point of contact, applying a proactive, customer-service approach to businesses’ interactions with state government, and Choose New Jersey, an independently funded and operated 501(c)(3) not-for-profit corporation created to encourage and nurture economic growth throughout the state.

To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov or call the Business Action Center at (866) 534-7789.