Encourages Research Collaboration Between New Jersey and Israel

Newark, N.J. (May 14, 2020) – The New Jersey Commission on Science, Innovation and Technology (CSIT), the New Jersey Economic Development Authority (NJEDA), and the New Jersey – Israel Commission today encouraged businesses and researchers within the Garden State’s clean energy sector to submit proposals for “BIRD Energy” grant funding of up to $1 million. Entities partnering with an Israeli company or university on a clean-energy project can get more details about the competitive funding opportunities at https://www.birdf.com/bird-energy-call-proposals/. Executive summaries for the proposals are being accepted through June 30, 2020. 

BIRD Energy is a collaborative effort between the U.S. Department of Energy (DOE), the Israel Ministry of Energy, the Israel Innovation Authority and the Israel – U.S. Binational Industrial Research and Development (BIRD) Foundation.

“Governor Phil Murphy unveiled an ambitious Energy Master Plan earlier this year that sets New Jersey on a course to 100 percent clean energy by 2050,” said Brian Sabina, NJEDA Senior Vice President, Office of Economic Transformation “BIRD Energy funding can help small businesses and researchers in New Jersey’s innovation ecosystem play a major role in attaining that ambition.”

To be considered, a project proposal should include:

  • Research & development (R&D) cooperation between two companies or cooperation between a company and a university/research institution (one from the U.S. and one from Israel)
  • Innovation in all areas of renewable energy and energy efficiency, such as solar and wind power, advanced vehicle technologies and alternative fuels, smart grid, storage, water-energy nexus, advanced manufacturing, artificial intelligence for energy management, etc.
  • Innovation in natural gas and other associated technologies
  • Significant commercial potential; the project outcome should lead to commercialization

The maximum conditional grant is $1 million per project, and no more than 50 percent of the joint R&D budget.

“New Jersey has a significant number of businesses in the clean energy sector that are working tirelessly to move the Garden State toward energy independence,” said CSIT Executive Director Judith Sheft. “Connecting these businesses and researchers with the funding they need to conduct groundbreaking work is essential to keeping New Jersey at the forefront of innovation.”

The BIRD Foundation works to encourage and facilitate cooperation between U.S. and Israeli companies in a wide range of technology sectors and offers funding to selected projects.

“New Jersey companies can greatly benefit from the BIRD program to increase their competitiveness in an increasingly global marketplace,” said Andrea Yonah, BIRD’s U.S. Director of Business Development for the East Coast and Midwest. “In addition to the funding, these collaborations can lead to increased revenue, follow-on investment and validation of their technology.”

Yonah noted that, in 2018 and 2019, four New Jersey companies were approved for projects with their partners in Israel. Two out of the four projects are energy-related. The BIRD Foundation believes that there are many more companies in New Jersey that qualify and encourages them to apply. Companies with questions about their proposals – or those seeking an Israeli collaborator – can reach out directly to Yonah at andrea@birdf.com.

Andrew Gross, Executive Director of the New Jersey – Israel Commission, sees BIRD Energy as critical to furthering the already solid relationship among New Jersey and Israeli companies and researchers in the clean energy sector.
“Many thanks to the BIRD Foundation for raising this opportunity with New Jersey,” Gross said. “This Commission continues to cultivate and support the synergy that exists between the Garden State and the Startup Nation so we can strengthen our economy and innovate for the future.”
 
About CSIT
In August 2018, Governor Phil Murphy signed legislation re-establishing the former New Jersey Commission on Science and Technology as the New Jersey Commission on Science, Innovation and Technology. The Commission is tasked with leading the way in promoting the state as a home for academic and technological research, development, and commercialization. The Commission is comprised of 17 members including the State’s Chief Innovation Officer, the Secretary of Higher Education; the Commissioner of Education; and the Chief Executive Officer of the NJEDA.

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RichardKasmin200px.png  By Richard Kasmin, NJEDA Chief Economist

Modern economies are nothing short of miraculous. They’re also incredibly complex. Globally, billions of people trade their labor and output with one another, valued by the International Monetary Fund at upwards of $90 trillion in annual production (GDP). This output is supported by global debt valued in 2018 at $188 trillion. That’s more than $2 in public (government) and private debt for every $1 of output.

For advanced economies (e.g.: North America, Europe, China, Japan), public debt as a ratio to GDP rose from around 70% just ahead of the great financial crisis (2008-2009) to around 100% in 2018 (see chart below). Most of this approximately 30 percentage point increase happened in the immediate aftermath of the great financial crisis. Why did this happen? What was the purpose of these governments incurring all this debt? And what does that increase in public debt tell us about how to deal with the economic impact of the Coronavirus crisis?

Advanced Economy Public Debt % of GDP

EC-AdancedEcon-(1).png
Before addressing these questions, we must first get a grasp of the nature of the current economic problem. What’s going on right now? When diagnosing issues in the economy, I often find it helpful to imagine the economy as if it were a play with these four roles:

  • Private businesses
  • Households
  • Financial markets
  • Government

Understanding these roles and how they interact with one-another helps explain how any shock to the economy differentially impacts actors in the economy and how to address the impacts of the shock.

So, imagine the economy is humming along. People are going to work, companies are producing goods and services, taxes are being paid, financial markets are easily directing flows of capital, and so on. Then the Coronavirus hits and the economy is forced to freeze – something that has no parallel in post-WWII history. What happens?
 
Act 1 – An Economic Freeze      
                                                                 
When the freeze hits, the actors in our play do the following:

  ​1. Private businesses and households are forced to face the tension between anchored expenses and 
      unanchored income:

       a. Their debts and many of their expenses are fixed, while
       b. Their income isn’t.

  2. To preserve financial capital given the loss of income, private businesses shed expenses. Their main
      expense is labor, so businesses fire or “furlough” workers.

  3. Households are the suppliers of labor, and the decline in demand for their services leads to a drastic drop in
      household income, which in turn causes sharp declines in consumer demand.

  4. This decline in demand forces private businesses to shed more labor, which then leads to more household
       income loss. Thus, a vicious cycle between private business and households is in play.

  5. The government then faces a crisis as tax income drops while the need for government assistance rises.

Simultaneously, financial asset prices drop due to:

  1. Increased default risk – that tension between anchored expenses and unanchored income;

  2. Lower GDP, which leads to lower asset valuations;

  3. A scramble for cash due to liquidity constraints from the decline in income and asset valuations (financial
      firms and households sell assets, and it’s tough to find buyers for these financial assets);

  4. And there are capital calls – investors are forced to pledge more capital (cash) when the value of their   
      assets drop – which leads to needs for even more cash, which causes more sales of assets and further
      drops in valuation, and so on. This is another vicious cycle.

The drop in financial asset valuation obviously has a negative impact on private business and households. Feeling less wealthy and panicked about financial market stability, businesses and households further curtail consumption and investment, creating another reason for a downward vicious cycle.

Thus, Act One ends with an economy in freefall. There are downward spirals in business and household income. Financial asset prices are dropping as valuations erode and investors are forced to sell into an illiquid market in a scramble for cash. Confidence in the economy has been shattered. If left to its own devices, this downward economic spiral will continue until the economy hits some version of rock bottom. What to do?
 
Act 2 – Fill the Hole and Stabilize the Financial System

What’s been done is attack the economic freefall on two fronts: attempt to fill the income hole and attempt to stabilize financial markets. This is done so the economy can hopefully avoid what Federal Reserve Chairman Powell described as “unnecessary insolvencies,” or business failures caused by the virus to otherwise sound companies. Unnecessary insolvencies cause destruction of the economy’s productive capacity and dampening the prospects for economic recovery. The attacks are fueled by two sources — US Treasury debt and Federal Reserve funds (otherwise known as reserves).

To date, the United States government has pledged more than $3 trillion, generated by debt creation. The US economy generates around $20 trillion in GDP per year, and some estimates have US economic output declining around 10-15% before rebounding during the summer. Thus, one way to think of the $3 trillion created by the federal government is as filling the economic hole created by the virus.

The Federal Reserve can create funds, or reserves, virtually out of thin air. It has used this power to intervene in financial markets to lend funds and buy assets where the market is not functioning adequately.

What follows explains the dynamics involved.

  1. Because the federal government can:

     a. (theoretically) create an unlimited amount of debt to supplement lost income;
     b. essentially ‘team up’ with its central bank – the Federal Reserve — to create unlimited currency to
         purchase debt and provide a financial backstop;
     c. tax people and businesses to generate income and receive payment for those taxes in the currency the
         federal government creates;

  2. The US Treasury issues debt to:

     a. provide funds for businesses so they can retain employees, pay debts, and hopefully enable them to
         survive the crisis;
     b. provide funds to households via enhanced unemployment insurance and one-time checks so they can
         keep up with living expenses and debt payments;
     c. provide funds to the medical care industry;
     d. and provide funds to state and local governments so they can supplement revenue loss and keep up with
         the rise in expenses incurred by the economic downturn;

  3. And the Federal Reserve utilizes its ability to create money to:

     a. become “the lender of last resort,” lending dollars to households, businesses, state and local
         governments, and even other countries;
     b. buy (or simply rely on the threat to buy) US Treasury debt to keep long-end interest rates low;
     c. and lower the short-term Federal funds interest rates in the hopes of stimulating economic activity.

All this said, the federal government cannot do this all on its own. The private banking system and other financial firms are necessary partners in utilizing their capital, funds created by the Federal Reserve (otherwise known as reserves) and institutional knowledge to provide loans and liquidity.

Act 3 – To be continued…

As of now, we can’t write Act 3. However, there are some things we can be sure it will contain:

  1. Assuming the government’s funds get to where they’re needed and quickly, they will help stabilize the
      economy so private businesses and households can stabilize, survive the freeze, and bridge the gap
      between anchored costs and unanchored income.

  2. Still, we will likely need more funds to stabilize the economy as the coronavirus impact drags on.
 
Epilogue

There is the potential for financial and economic damage from all the debt that’s been created. It could be in the form of higher future inflation. It could mean the federal government has to significantly change tax and spending policy to lower future deficits and debt. It could lead to depressed financial asset prices, weaker business investment growth, and damped consumer spending plans.

In other words, there is likely to be some form of payback for creating all this money today. But that’s another day’s problem. For now, it’s all about getting through the current crisis so that, when the time comes to take the economy out of the freezer, it can thaw without suffering significant structural damage.

Another question not addressed here is, if it’s so easy to create money, why don’t we just do it to pay for everything we want, like medical care for all? That’s potentially a topic for another Economist’s Corner.

 

TRENTON, N.J. (May 14, 2020) – Participants in the second class of the New Jersey Economic Development Authority (NJEDA) and African American Chamber of Commerce of New Jersey’s (AACCNJ) Small Business Bonding Readiness Assistance Program have to date qualified for $5.6 million in surety bonding that will better position these firms to bid on public contracts. The program launched in 2019 to prepare small, minority- and women-owned businesses to obtain bonds, a crucial step in competing for state and federal government contracts.
 
“Supporting small businesses and creating new opportunities for women- and minority-owned businesses are always important, but these efforts are especially crucial now as we work to help businesses survive the challenges posed by COVID-19,” said NJEDA Chief Executive Officer Tim Sullivan. “The Small Business Bonding Readiness Assistance Program’s success providing guidance for growing businesses and removing barriers that have prevented many women- and minority-owned businesses from bidding for state and federal opportunities is an important step toward leveling the playing field and paving the way to a robust and speedy economic recovery.”
 
The Small Business Bonding Readiness Assistance Program provides a comprehensive series of classroom trainings, workshops, and strategic counseling sessions covering a variety of topics relevant to small businesses in all sectors, including bonding and insurance, business development, financial presentation, construction and contract law, construction management, estimating, and credit. At the end of the program, all participating businesses receive a Bonding Readiness Segment Report, which provides an in-depth assessment of their strengths and weaknesses to help them plan for the future.
 
“Equal access to opportunity is a vital first step toward economic and social equality. Ensuring women- and minority-owned small businesses can qualify for bonding and compete for government contracts is critical to achieving our vision for a stronger, fairer New Jersey economy that works for all our diverse residents,” said Michelle Bodden, NJEDA Chief Diversity and Inclusion Officer. “The Small Business Bonding Readiness Assistance Program plays an important role preparing minority- and women-owned businesses to take advantage of new opportunities. This is vital in the best of times, but will become particularly important as businesses face the obstacles associated with New Jersey’s COVID-19 outbreak.”
 
The first cohort of small business owners to participate in the program graduated in May 2019. Of the 27 graduating businesses in that class, 13 have qualified for more than $11.4 million in surety bonding, and 24 have successfully bid on public contracts.
 
Following this success, the NJEDA and AACCNJ expanded the program. New classes based in Jersey City and Camden ran from February 2020 through April 2020, but participants continue to meet virtually to support one another as they face the challenges posed by COVID-19. 15 of the 16 businesses in the Jersey City class and 11 of the 12 in the Camden class are women- or minority-owned. Since the conclusion of the formal program, 13 businesses in this cohort have already qualified for a combined $5.6 million in surety bonding, with individual businesses’ bonding capacities ranging from $100,000 to $750,000.
 
“Even during the COVID-19 pandemic, the African American Chamber of Commerce of New Jersey and the NJEDA remain laser focused on positioning New Jersey businesses for success,” said AACCNJ Founder, President, and CEO John Harmon. “We are extremely pleased with our partnership with the NJEDA and the value we have been able to provide to businesses by helping them secure surety bonds. These bonds will definitely strengthen the competitiveness of these businesses.”
 
The NJEDA and AACCNJ are currently accepting applications for a third Small Business Bonding Readiness Assistance Program class hosted at Stockton University in Atlantic City. Due to the COVID-19 outbreak, this class will be conducted virtually. For more information and to apply visit https://www.aaccnj.com/bonding-program—sbbrap.html.
 
 
About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
 
To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, and LinkedIn.
 

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Newark, N.J. (May 11, 2020) – The Commission on Science, Innovation and Technology (CSIT) and BioNJ today invited researchers and entrepreneurs considering applying for Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) to get insights and advice during an upcoming webinar. The May 20 webinar will focus on tips and tools on National Center for Advancing Translational Sciences (NCATS) funding and how to successfully apply. The registration page for the webinar can be found here.

Housed within the National Institutes of Health, NCATS offers non-dilutive funding and resources to help small businesses advance and commercialize promising translational biotechnology and life sciences research technologies. Researchers in these fields who are interested in bringing their innovations to market may be eligible to apply for the highly-competitive NCATS SBIR and STTR programs.

“The impressive roster of New Jersey life sciences companies jockeying for federal SBIR and STTR funding represents the vital role the Garden State plays in the country’s innovation community,” CSIT Executive Director Judith Sheft said. “This webinar is designed to give New Jersey entrepreneurs and researchers a leg up on the competition, which will not only benefit their specific mission, but also the Garden State’s innovation sector as a whole.”

CSIT is joining BioNJ in co-sponsoring the webinar for potential applicants. Sheft will be joined on the webinar by BioNJ President and Chief Executive Officer Debbie Hart, and Lili M. Portilla, Director of Strategic Alliances at NCATS.

The webinar will feature an overview of the SBIR and STTR programs and benefits of funding, key NCATS focus areas to advance clinical research and translational sciences, tips for submitting a successful application, and upcoming opportunities and deadlines. It will also include other resources and programs, including NCATS’ Therapeutics for Rare and Neglected Diseases (TRND) and Bridging Interventional Development Gaps (BrIDGs) programs.

“Small businesses vying for federal SBIR and STTR grants often encounter roadblocks to presenting comprehensive SBIR and STTR proposals,” Hart said. “During this webinar, we will address strategies for early-stage companies to enhance their competitive positions as they work to commercialize products with potential for global impact.”

A total of more than $38 million in SBIR/STTR funding was awarded to over 100 New Jersey applicants in 2019, according to statistics from the federal Small Business Association.

“Given that the typical award time from the date of application is generally six to nine months, this webinar will arm New Jersey entrepreneurs and researchers with tools and resources they need to submit complete and thorough applications,” Portilla said.
 
About CSIT
In August 2018, Governor Phil Murphy signed legislation re-establishing the former New Jersey Commission on Science and Technology as the New Jersey Commission on Science, Innovation and Technology. The Commission is tasked with leading the way in promoting the state as a home for academic and technological research, development, and commercialization. The Commission is comprised of 17 members including the State's Chief Innovation Officer, the Secretary of Higher Education; the Commissioner of Education; and the Chief Executive Officer of the NJEDA.

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TRENTON, N.J. (May 7, 2020) – The New Jersey Economic Development Authority (NJEDA) is encouraging owners of small businesses impacted by the COVID-19 outbreak to explore the Authority’s existing small business financing programs. These programs, which pre-date the outbreak, are important tools for business owners and can serve as valuable complements to federal and State programs launched specifically to respond to the pandemic.

“Under Governor Murphy’s leadership, we have always been committed to providing small businesses with capital they need to grow,” NJEDA Chief Executive Officer Tim Sullivan said. “While we created new resources to address the unique challenges COVID-19 poses, our established programs remain effective tools that businesses can use to face today’s challenges and prepare for tomorrow.”
 
Sullivan noted that, while the NJEDA continues to seek additional funds to support its COVID-specific programs, the Authority urges business owners to explore its other programs, which provide many of the same or similar resources. The existing programs are offered both directly by the NJEDA and in partnership with lenders throughout the Garden State.
 
The NJEDA encourages businesses to explore the following programs. More details about each of these programs can be found on the NJEDA’s website at https://www.njeda.gov/small_midsize_business. 
 
Micro Business Loan Program: Through this program, the NJEDA makes financing of up to $50,000 available to for-profit New Jersey businesses, which can use the financing for working capital or to purchase equipment. To ensure that the financing is accessible to the early-stage and micro businesses that need it most, to qualify, a business must have annual revenues of less than $1,500,000 in the most current fiscal year and cannot have more than 10 full-time employees at time of application.
 
Small Business Fund: The Small Business Fund offers loans of up to $500,000 for qualifying creditworthy small, minority- or women-owned businesses in New Jersey with up to $3 million in revenue that have been in operation for at least one full year and may not have the ability to get bank financing. Not-for-profit corporations that have been operating for at least three full years may also be eligible for assistance under the Small Business Fund.
 
Direct Loans: Direct loans are available up to $2 million for fixed assets, and $750,000 for working capital. 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. NJEDA’s direct loan financing offers competitive interest rates and terms.
 
Premier Lender Program: In partnership with two dozen banks throughout New Jersey, The Premier Lender Program offers up to a $2 million loan participation or $1.5 million loan guarantee for fixed assets, and up to a $750,000 loan participation or $1.5 million guarantee for term working capital. Line of credit guarantees of up to $750,000 are also available.
 
In addition to these programs, which pre-date the COVID-19 outbreak, the NJEDA also launched a suite of programs specifically designed to address the challenges the outbreak has caused. These initiatives include grants, loans, guarantees, and support for entrepreneurs and community development financial institutions. The grant and loan programs are currently oversubscribed, but the NJEDA is actively seeking funding from federal, corporate, and philanthropic sources to expand them. Small business owners seeking more information about any of these programs should visit New Jersey’s COVID-19 Business Information Hub at https://cv.business.nj.gov.
 
To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, and LinkedIn.

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TRENTON, N.J. (May 6, 2020) – The New Jersey Economic Development Authority (NJEDA) today announced that it will receive an $800,000 United States Environmental Protection Agency (EPA) Revolving Loan Fund (RLF) Brownfields grant. The NJEDA can use this funding to capitalize a revolving loan fund or to provide subaward grants to communities, developers, and nonprofits carrying out cleanup and redevelopment activities at brownfield sites. EPA also awarded grants to the cities of Camden and Jersey City and the nonprofit Cooper’s Ferry Partnership. In total, the Agency provided nearly $2.1 million to support brownfield remediation in New Jersey.
 
“Supporting communities as they work to clean up and revitalize contaminated properties is crucial for creating vibrant cities and neighborhoods and stimulating economic growth,” said NJEDA Chief Executive Officer Tim Sullivan. “EPA RLF funding will allow us to provide more comprehensive and effective support for communities and organizations working to return contaminated properties to productive use. This is always valuable, but it will have a particularly significant impact now, when resources are stretched thin everywhere due to COVID-19.”
 
Governor Murphy identified brownfield remediation and redevelopment as an important component of smart planning that will allow New Jersey to meet its goals for economic growth, minimize the environmental impacts posed by former industrial properties, and help communities become more sustainable and resilient. To facilitate brownfields redevelopment, Governor Murphy has proposed a new set of programs, including a remediation and redevelopment tax credit, as well as an enhanced brownfields loan program through NJEDA.
 
In addition to these proposed programs, in March 2019 the NJEDA and the New Jersey Department of Environmental Protection (NJDEP) entered into an MOU to expand the Community Collaborative Initiative (CCI), a program that embeds NJDEP staff in targeted communities to help them navigate complex environmental stressors and set a pathway for successful remediation and redevelopment. The CCI currently operates in twelve communities around New Jersey: Bayonne, Camden, Perth Amboy, Trenton, Bridgeton, Jersey City, Millville, Newark, Paterson, Paulsboro, Salem City, and Vineland.
 
While the EPA RLF grant will be used to provide low-interest loans and sub-grants to support brownfield cleanup and redevelopment throughout the State, the NJEDA’s RLF program will target the twelve CCI communities, which have high instances of brownfields, poverty, health disparities, and need for revitalization. Funds will go toward revitalizing vacant and abandoned properties to provide community assets such as housing, recreation and open space, health facilities, and commerce opportunities. As borrowers repay these loans, the fund will re-lend that money to other borrowers, providing an ongoing source of capital for community improvement projects.
 
“Economic development and environmental protection go hand in hand,” said New Jersey Department of Environmental Protection Commissioner Catherine R. McCabe. “This grant award will spark community revitalization, strengthening our communities and our ecosystems at the same time. New Jersey’s Community Collaborative Initiative, which started in Camden, is a valuable example of how funding redevelopment creates economic activity and I’m pleased that the DEP and NJEDA can replicate that model in cities throughout the state.”
 
In addition to the $800,000 grant to the NJEDA, EPA also awarded $500,000 Brownfields Cleanup Grants to the Cities of Camden and Jersey City to support the cleanup and revitalization of the Borden Chemical manufacturing facility in Camden and the Mill Creek industrial site in Jersey City. The Agency also awarded $299,451 to Cooper’s Ferry Partnership Inc. to identify sites for assessment in the North Camden neighborhood, assess those sites for hazardous substances, complete cleanup and reuse plans, and carry out community outreach activities.
 
“The EPA Brownfields program has helped New Jersey’s communities by transforming once-vacant properties into beacons of hope, especially for many economically disadvantaged neighborhoods,” said EPA Regional Administrator Pete Lopez. “Vacant or contaminated land may not feel or look like a community asset waiting to happen, but with the right knowledge, skills, vision and investment, these properties offer local governments and neighborhoods some of the best opportunities to transform their futures. Through the Brownfields program, we can reverse blight and replace it with regeneration – and with even one property’s reuse, we can spur community-wide revitalization.”
 
 
About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
 
To learn more about NJEDA resources for businesses call or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, and LinkedIn.
 

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Please be advised that the meeting of the New Jersey Economic Development Authority scheduled
for 10:00 AM, Tuesday, May 12, 2020 is a telephonic meeting only.
 
The Members will convene to discuss and vote on matters via conference call only.
 
Members of the public may participate in the meeting by calling in on the conference line.  Members of the public will have an opportunity to speak during the public comment segment of the meeting. The following conference numbers are provided for the public to call in for the meeting:
 
NJEDA BOARD MEETING
PARTICIPANT DIAL-IN NUMBERS:   877-692-8955
PARTICIPANT AUTOMATED CONFERENCE ID:   4204420
 
Members of the public are encouraged to call in at least 15 minutes prior to the time scheduled to begin.

.A copy of the proposed agenda can be found prior to the meeting at www.njeda.gov/Board. Following the Board Meeting, minutes and the full agenda will also be available at www.njeda.gov/Board.

Aims to Help Improve Cash Flow, Conserve Capital for Portfolio Companies

 

TRENTON, N.J. (April 27, 2020) – The New Jersey Economic Development Authority (NJEDA) today outlined several steps it is taking to support existing portfolio companies coping with the economic impact of the COVID-19 outbreak. These include payment moratoria, loan-maturity extensions, additional flexibility for collateral subordinations needed for new working capital financing, and fee waivers.

“Business owners are facing numerous financial hardships in light of the COVID-19 pandemic and we are committed to supporting them through this difficult time,” NJEDA Chief Executive Officer Tim Sullivan said. “We continue to work with our partners in the public and private sectors to create new ways to offset some of the outbreak-related challenges faced by New Jersey companies.”

On March 9, 2020 Governor Phil Murphy signed Executive Order 103 (EO 103). At a special Board meeting on March 26, the NJEDA approved authorizing a three-month moratorium on principal and interest payments on all NJEDA loans. This includes direct loans, technology and life science loans, and loans made through the Premier Lender Program. Borrowers can receive an additional three-month moratorium if they certify they have faced hardship due to the COVID-19 outbreak and six months beyond that if NJEDA staff review of the company’s financial statements identifies a clear inability to service debt. To qualify for the moratorium, companies must be not greater than 120 days past due as of March 26, 2020 on existing loans and must not be in litigation with the NJEDA. Nearly 300 existing NJEDA customers are eligible to benefit from the payment moratorium.

For Premier Lender Program participation loans, the NJEDA will match the bank’s principal and/or interest moratoria up to 12 months on participation loans to provide cash flow relief. An extension of the loan maturity, or re-amortization of the principal balance, can be approved for a similar term to avoid balloon payments at the end of the term, subject to program-specific restrictions.

The NJEDA is also helping to facilitate working capital financing by allowing some collateral releases, subordinations, and substitutions on business assets for eligible businesses impacted by COVID-19 when requested.

Lastly, the NJEDA is also waiving late fees though September 30, 2020 and loan modification request fees related to the disruption caused by the COVID-19 pandemic in order to reduce the financial burden on businesses.

Businesses with questions about their specific loans should reach out directly to their NJEDA loan officer.

About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
 
To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, and LinkedIn.
 

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TRENTON, N.J. (April 24, 2020) – The New Jersey Economic Development Authority (NJEDA) announced today that Goldman Sachs, in partnership with Pursuit, has committed $10 million to loans for small businesses in New Jersey. The commitment is part of Goldman Sachs’s 10,000 Small Businesses initiative. Loan applications are currently available at www.pursuitlending.com/pppapply.
 
“Small businesses are the backbone of our state economy and central to our vision of a stronger, fairer New Jersey. It is vital that we help them overcome the unprecedented challenges COVID-19 poses,” said Governor Phil Murphy. “This commitment from Goldman Sachs and Pursuit will provide crucial resources that thousands of businesses need to keep their doors open and continue supporting their employees.”
 
The loans will be made through the U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP). They provide a new opportunity for small businesses and nonprofits that have been unable to submit a PPP application through another lending institution. Loans made through this program can be used for payroll costs, interest on mortgages, rent, and utilities. Businesses that receive financing through the program can have their loans partially or wholly forgiven if they maintain or rehire their workforce after the COVID-19 outbreak is controlled.
 
“This small business relief effort is only the most recent example of the leadership that Governor Murphy, along with Senator Bob Menendez and Senator Cory Booker, have shown in helping New Jersey navigate this crisis,” said John Waldron, President and Chief Operating Officer of Goldman Sachs. “Our firm is doing everything we can to support community small businesses, and New Jersey, where many of our colleagues live and work, will continue to be a focus of our relief efforts.”
 
Goldman Sachs will provide these loans via a partnership with Pursuit, a leading mission-driven lender formerly known as New York Business Development Corporation. Pursuit will offer these loans directly to small business owners in New Jersey.
 
“At a time when small businesses are facing unique and unprecedented challenges, mission-driven lenders that can provide flexible financing options and support are crucial,” said Pursuit President and CEO Pat MacKrell. “Pursuit is proud to partner with Goldman Sachs to provide the resources New Jersey small businesses need to remain open and prepare for recovery from the COVID-19 outbreak.”
 
These additional resources will complement the NJEDA’s existing COVID-19 response efforts, which include a grant program for small businesses, a zero-interest loan program for mid-size companies, support for private-sector lenders and CDFIs, funding for entrepreneurs, and a variety of resources providing technical support and marketplace information.
 
“Supporting small businesses is central to the NJEDA’s COVID-19 response. Helping these businesses and their employees during this challenging time is vital to keeping our communities strong and preparing for recovery when that becomes possible,” said NJEDA Chief Executive Officer Tim Sullivan. “The resources Goldman Sachs and Pursuit are bringing to New Jersey will be a vital complement to our existing small business relief programs that will allow us to support more businesses and begin laying the foundation for a strong recovery.”
 
The commitment builds on existing investments by Goldman Sachs that support small businesses in New Jersey through the 10,000 Small Businesses initiative, which helps small businesses grow and create jobs by providing them with greater access to education, financial capital, and business-support services. To date, more than 186 business owners in New Jersey have graduated from the program. Nationally, two-thirds of graduates of the program report revenue growth within six months and nearly half report job growth.
 
Additional information on resources for New Jersey businesses impacted by COVID-19 is available at https://cv.business.nj.gov. Comprehensive information about New Jersey’s response to the novel coronavirus outbreak is available here: https://covid19.nj.gov/.
 
 
About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
 
To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, and LinkedIn.
 
About The Goldman Sachs Group
 
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
 
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A telephonic meeting of the Commission of Science, Innovation and Technology (CSIT) Board has been scheduled for Friday, April 24, 2020 at 10:00 am.

CSIT BOARD MEETING
PARTICIPANT DIAL-IN NUMBERS:   1-888-431-3598
PARTICIPANT AUTOMATED CONFERENCE ID:   8068877

 

A copy of the proposed agenda can be found at www.njeda.gov/csit