TRENTON, N.J. (26 de marzo de 2020) – New Jersey Economic Development Authority (NJEDA) aprobó hoy un conjunto de nuevos programas diseñados para apoyar a las empresas y los trabajadores que enfrentan dificultades económicas debido al brote del nuevo coronavirus, COVID-19.
 
El paquete de iniciativas incluye un programa de subsidios para pequeñas empresas, un programa de préstamos sin intereses para empresas medianas, asistencia para prestamistas del sector privado e Instituciones Financieras de Desarrollo Comunitario (Community Development Financial Institutions (CDFI), financiamiento para emprendedores y una variedad de recursos que proporcionan asistencia técnica e información sobre el mercado. En conjunto, las iniciativas proporcionarán más de $75 millones de asistencia financiera estatal y privada, con la posibilidad de que aumenten a más de $100 millones si se dispone de recursos filantrópicos, estatales y federales adicionales. Entre 3,000 y 5,000 pequeñas y medianas empresas contarán con la asistencia de estas iniciativas y están destinadas a complementar las iniciativas federales de recuperación económica anunciadas recientemente.
 
Para obtener más información sobre los programas, visite https://cv.business.nj.gov.
 
“El brote del nuevo coronavirus en New Jersey nos ha llevado a un territorio desconocido y los impactos económicos serán significativos y de gran envergadura, especialmente en Main Street. El alcance y la escala de este nuevo desafío requieren una acción inmediata para apoyar a los trabajadores y a las empresas de New Jersey”, declaró el Gobernador Phil Murphy. “Los nuevos programas de NJEDA anunciados hoy son un paso sumamente importante que mitigará el impacto económico de este desafío sin precedentes, y ayudarán a que los trabajadores y las empresas atraviesen la tormenta y la superen con mayor fortaleza cuando las cosas vuelvan a la normalidad”.
 
La legislatura, a través de A3845, aprobó el desarrollo del programa de subvenciones, el apoyo a las CDFI y la flexibilidad para los prestatarios actuales de NJEDA. Los patrocinadores principales de la legislación incluyen a los asambleístas Roy Freiman, Louis D. Greenwald, Ronald S. Dancer y los senadores Nilsa Cruz-Perez y Brian Stack.
 
Las nuevas iniciativas de NJEDA se centran en las empresas que resultaron más afectadas por el brote del nuevo coronavirus: empresas locales pequeñas, empresas medianas que han tenido que cerrar o reconfigurar drásticamente sus operaciones, y empresas nuevas o en etapa inicial. Los programas proporcionan un conjunto de ofertas compatibles que abordan las diferentes necesidades de estas empresas e incluyen mecanismos para proporcionar financiación y asistencia lo más rápido posible.
 
Muchos de los recursos están diseñados para ser escalables con la inclusión de recursos federales y filantrópicos, si están disponibles. Los socios filantrópicos interesados en realizar donaciones para respaldar el programa de subsidios para pequeñas empresas de NJEDA deben escribir a donations@njeda.com.
 
“Las pequeñas y medianas empresas son el corazón de la economía de New Jersey y es crucial que les proporcionemos los recursos y la asistencia que necesitan para hacer frente al brote del nuevo coronavirus”, afirmó el Director Ejecutivo de NJEDA, Tim Sullivan. “En coordinación con nuestros socios en todo el gobierno estatal, estamos emprendiendo un esfuerzo sin precedentes para asistir a estas empresas y a los residentes de New Jersey que dependen de ellas para su sustento. Son tiempos difíciles, pero los habitantes de New Jersey son resilientes, y juntos superaremos esta situación y reconstruiremos nuestra economía”.
 
El conjunto de nuevas iniciativas incluye lo siguiente:
 

  • Small Business Emergency Assistance Grant Program (Programa de Subsidios para Asistencia de Emergencia a Pequeñas Empresas): Un programa de $5 millones que otorgará subsidios de hasta $5,000 a pequeñas empresas minoristas, de arte, entretenimiento, recreación, alojamiento, servicios gastronómicos y otros servicios (como servicios de reparación, mantenimiento, servicios personales y de lavandería) para estabilizar sus operaciones y reducir la necesidad de despidos o licencias.
  • Small Business Emergency Assistance Loan Program (Programa de Préstamos para Asistencia de Emergencia a Pequeñas Empresas): Un programa de $10 millones que proporcionará préstamos de capital de trabajo de hasta $100,000 a empresas con ingresos inferiores a $5 millones. Los préstamos realizados a través del programa tendrán plazos de diez años con cero por ciento durante los primeros cinco años, luego se restablecerán a la tasa mínima vigente de la EDA (con un límite de 3.00 %) durante los cinco años restantes.
  • Community Development Finance Institution (CDFI) Emergency Loan Loss Reserve Fund (Fondo de Reserva de Emergencia para Morosidad en Préstamos de la Institución Financiera de Desarrollo Comunitario [CDFI]): Un fondo de reserva de capital de $10 millones para tomar la posición a primer riesgo en préstamos de las CDFI que proporcionan capital de trabajo de bajo interés a microempresas. Esto permitirá que las CDFI resistan los incumplimientos de los préstamos debido al brote, lo que les facilitará otorgar una mayor cantidad de préstamos a tasas de interés más bajas a las microempresas afectadas.
  • CDFI Emergency Assistance Grant Program (Programa de Subsidio para Asistencia de Emergencia de la CDFI): Un programa de $1.25 millones que proporcionará subsidios de hasta $250,000 a las CDFI para escalar operaciones o reducir las tasas de interés mientras dure el brote.
  • NJ Entrepreneur Support Program (Programa de Asistencia a Emprendedores de New Jersey): Un programa de $5 millones que fomentará flujos continuos de capital para empresas de la economía de la innovación, y respaldará temporalmente a un mercado inversor cauteloso al proporcionar garantías del 80 % para préstamos de capital de trabajo a nuevos emprendedores.
  • Small Business Emergency Assistance Guarantee Program (Programa de Garantía para Asistencia de Emergencia a Pequeñas Empresas): Un programa de $10 millones que proporcionará garantías del 50 % en los préstamos de capital de trabajo y eximirá los cargos de préstamos otorgados a través de instituciones que participan en los programas Premier Lender o CDFI existentes de la NJEDA.
  • Emergency Technical Assistance Program (Programa de Asistencia Técnica de Emergencia): Un programa de $150,000 que brindará asistencia técnica a las empresas con sede en New Jersey que soliciten Economic Injury Disaster Loans (préstamos por desastre por lesiones económicas) a través de la U.S. Small Business Administration (SBA). Las organizaciones contratadas recibirán un pago en función de los envíos de solicitudes a la SBA respaldados por la asistencia técnica que proporcionan.

 
Para obtener más detalles sobre los nuevos programas de la NJEDA, incluidos los requisitos de elegibilidad completos, visite, https://cv.business.nj.gov. La información completa sobre la respuesta de New Jersey ante el brote del nuevo coronavirus está disponible en https://covid19.nj.gov/.

The New Jersey Economic Development Authority will hold a special telephonic Board meeting on Thursday, March 26, 2020 at 10 a.m. 

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 line is being provided for both purposes. Please note there may be a delay in accessing the conference line, so members of the public are encouraged to call in 15 minutes prior to the time scheduled to begin.

Participant Dial In Numbers:

877-876-9173  or   785-424-1672

Conference ID: NJEDA

.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.

Please be advised that a Special Telephonic Meeting of the Capital City Redevelopment Corporation Board Meeting is scheduled for 1pm, Tuesday, March 24, 2020.  The Members will convene via conference call only, to discuss and vote upon the Annual Report of the Capital City Redevelopment Corporation.

Members of the public whom wish to speak during the public comment segment of the meeting, pertaining to agenda items, may call into the meeting by using the following conference number:
 
Teleconference #:
1-888-431-3598
Access Code: 8068877

The agenda can be found 48 hours prior to the meeting at our website: www.njeda.gov/ccrc.

TRENTON, N.J. (March 12, 2020) – Pursuant to Executive Order 103 (Murphy 2020) (“EO 103”) in response to increasing numbers of employers encouraging employees to work from home in response to the COVID-19 pandemic, the New Jersey Economic Development Authority (NJEDA) is waiving certain specific requirements related to employee presence in the office for the recipients of awards under employment-based incentive programs. 
 
This waiver will apply if the recipient provides documentation from their Human Resources department that demonstrates their work from home policy directly relates to COVID-19 and the communication to the recipient’s staff that the policy has been invoked. This documentation shall be included in the recipient’s 2020 annual certification submission and an email to the recipient’s Servicing Officer should be sent notifying the NJEDA that this temporary waiver has been instituted. 
 
“As companies across the state formulate plans to continue conducting business while mitigating the potential risk of COVID-19, this waiver will alleviate concern about jeopardizing incentives for which they have been approved,” said NJEDA Chief Executive Officer Tim Sullivan. “Health and safety are our top priorities, and we want to support companies in making decisions that protect their employees and communities while ensuring New Jersey's economic well-being." 
 
The waiver applies to recipients of awards under the Business Employment Incentive Program (“BEIP”), Business Retention and Relocation Assistance Grant Program (“BRRAG”), Urban Transit Hub Program (“HUB”), and the Grow New Jersey Program (“Grow NJ”) who are normally bound by the following requirements in NJEDA rules:
 

  • N.J.A.C. 19:31-10.2: In BEIP, the requirement that a full-time employee “spend at least 80 percent of his or her time at the site” to meet the definition of “full-time employee at the qualified business facility.”
  • N.J.A.C. 19:31-14.2: In BRRAG, the requirement that a full-time employee “spend at least 80 percent of his or her time at the site” to meet the definition of “full-time employee at the qualified business facility.”
  • N.J.A.C. 19:31-9.2: In HUB, the requirement that a full-time employee “spend at least 80 percent of his or her time at the site” to meet the definition of “full-time employee at the qualified business facility.”
  • N.J.A.C. 19:31-18.2: In Grow NJ, the requirement that a full-time employee “must spend at least 80 percent of his or her time at the qualified business facility” to meet the definition of “eligible position” or “full-time job.”  

The waiver shall only apply to the time the State is in a Public Health Emergency and that a State of Emergency, as proclaimed in EO 103, is in effect.
 
Award recipients with questions should reach out directly to their assigned Incentives 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.
 

RichardKasmin200px.png  By Richard Kasmin, NJEDA Chief Economist

Differential access to capital has impacted inequality throughout history. This issue of the Economist’s Corner examines how access to capital has affected people of color in New Jersey in the past and what we can do to address persistent inequalities moving forward. 

Capital

In economics, capital refers to assets that can generate economic benefits. Generally, the first thing that comes to mind is physical capital, or fixed assets such as machines, computers, and structures such as offices and manufacturing plants. But not all capital is tangible. There are intangible assets, such as the knowledge and skills people build up through education and experience. These assets are otherwise known as human capital.
 
Economists dating back to the father of economics, Adam Smith, have conceptualized and sought to understand the impact of human capital. In his famous publication known as The Wealth of Nations, Smith wrote, “The acquisition of … talents during … education, study, or apprenticeship, costs a real expense, which is capital in [a] person. Those talents [are] part of his fortune [and] likewise that of society.” Smith here is making the case that education and experience constitutes capital as it requires costly investment and has clear economic value to a society.

So, how can we assess the value of human capital? Many economists have tried to understand the economic value of education. Work by eminent economists(1) has sought to produce estimates of wage and salary income as a function of years and quality of education, age, and experience. Such studies consistently show significant positive returns to years of education. In short, more education equals more income.

But that more education equals more income does not mean all education is of the same value or that “equal” education creates equal value. Rather, the formal education system is but one institution that develops the mind of the individual. This was made clear over 50 years ago in James Coleman’s landmark Equality of Educational Opportunity study, which was commissioned as part of 1964 Civil Rights Act. The Coleman study showed wide disparities in test scores along racial lines, which was of no surprise at the time. What was surprising was Coleman’s conclusion as to the cause. As stated in the report, “One implication stands out above all: That schools bring little influence to bear on a child’s achievement that is independent of his background and general social context; and that this very lack of an independent effect means that the inequalities imposed on children by their home, neighborhood, and peer environment are carried along to become the inequalities with which they confront adult life at the end of school.” In other words, education matters, but so do many other factors, including a person’s support system, opportunities available outside the classroom, and the neighborhood they grow up in. 

Deficit or Debt?

Coleman’s finding does not refute the idea that more education increases human capital, but it does suggest formal education alone cannot overcome prior built-up deficits in human capital. If you consider the racial education achievement gap as more a function of past human capital investment deficits than a function of current education production, you are faced with a startling thought – you can’t properly address the achievement gap without considering the accumulation past generations’ deficits. And the accumulation of past deficits is commonly referred to in economics as a debt. This existence of an education debt was conceptualized by Dr. Gloria Ladson-Billings in her American Education Research Association 2006 Presidential Address(2). Ladson-Billings’ contention is, if the existence of this education debt generates current human capital deficits, you cannot possibly fix the deficit without fixing the debt. At a minimum, Ladson-Billings’ contention is we must take a holistic approach to address the achievement gap.

NJ Labor Market Outcomes by Race/Ethnicity 

Keeping this framework in mind, we can turn our attention to the economic data in New Jersey, what inequalities persist, and what policies the State has in place to tackle them.

First, let’s look at some of the recent data and trends by race and ethnicity related to the labor market and income. Clearly there are significant disparities in labor market outcomes by race. Employment rates as of 2018 were rising for white, black, and Hispanic New Jerseyans, yet employment rates for minorities continued to lag that of white people. Real incomes were rising across the board as the economic expansion continued to mature. Yet for black people, as of 2018, the level of real income remained below where it was prior to the recession. And large disparities in real income by race and ethnicity persisted.

  NJMR1.jpg  NJMR2.jpg
Source: American Community Survey data

As the following chart shows, as of 2018, sharp disparities in educational achievement persisted by race and ethnicity. Given the evidence that more educational attainment yields more income, these educational achievement disparities probably explain a significant portion of disparities in labor market outcomes.

  NJMR3.jpg

However, there is good news. Educational achievement rates for minorities are rising. Since the end of the recession through 2018, the share of the population aged 25+ with a college degree or more is up significantly among all major racial and ethnic groups. 

  NJMR5.jpg
Source: American Community Survey

NJ Entrepreneurship by Race/Ethnicity

Studies show education level is positively correlated with entrepreneurship and entrepreneurial success(3).  Thus, lower levels of education among racial and ethnic minorities may be a barrier to entrepreneurship(4).  Certainly in New Jersey, disparities in labor market outcomes and educational attainment are reflected in business ownership data. 

According to the most recent publicly available data, non-Hispanic white people owned approximately 69 percent of New Jersey businesses while accounting for approximately 54 percent of the working-age population. This contrasts with non-Hispanic black people, who owned approximately 7 percent of businesses but accounted for approximately 14 percent of the working-age population. Hence, the data indicates disparities in business ownership along racial lines.

  NJMR5-(1).jpg
Source: Survey of Business Owners, 2012

The disparities are even larger once you consider the share of businesses with employees, as distinct from sole proprietorships. As of 2012, only 5 percent of black-owned businesses and 11 percent of Hispanic-owned businesses had employees. By contrast, 25 percent non-Hispanic white-owned businesses and 32 percent of Asian-owned businesses had employees. When you aggregate the data, for companies with employees: 77 percent are owned by non-Hispanic white people, 2 percent by black people, 15 percent by Asians, and 6 percent by Hispanics. For companies without employees: 67 percent are owned by non-Hispanic white people, 9 percent by black people, 9 percent by Asians, 14 percent by Hispanics.

  NJMR6.jpg
Source: ​Survey of Business Owners, 2012

The positive news on this front is the most recent data on firms with employees shows solid growth in black-, Hispanic-, and Asian-owned firms.

NJMR7.jpg
Source: ​Annual Survey of Entrepreneurs, 2016; Survey of Business Owners, 2012

New Jersey’s Holistic Approach

In this piece, we’ve discussed the significance of human capital for economic value creation, presented views on the causes and significance of racial and ethnic achievement gaps, and provided evidence on how underinvestment in human capital is evident in economic data. To address the issue of an education or general human capital debt calls for a holistic approach. 

Governor Murphy’s Economic Plan for a stronger, fairer New Jersey takes a holistic approach to addressing this challenge by making high quality education from Pre-K through college more affordable and taking on other barriers to success with criminal justice reform and direct investments in underserved communities. Governor Murphy’s recently-released talent-based economic development strategy – “Jobs NJ: Developing Talent to Grow Business in the Garden State” – builds on these efforts to expand opportunities for career-seekers to gain skills and for employers to fill their talent needs. The plan lays out a collaborative, whole-of-government approach to enhance equity in the Garden State by ensuring all career-seeking New Jerseyans have the education and training necessary to access high-quality employment and that businesses and employers offering high-quality employment can quickly and efficiently fill their talent needs.

Part of addressing the problem is also realizing how long it takes for investments in human capital to reap benefits, so although investments in human capital are incredibly important, they may not sufficiently help people currently active in the labor or entrepreneurial market. On this front, we must appreciate how human capital is linked to access to financial capital. The evidence shows access to financial capital is lower for minority owners. For instance, one study found minority-owned businesses often rely more on personal and family wealth than external debt or equity for business financing(5).  Another study showed that among businesses with annual gross receipts of $500,000, 17 percent of minority-owned businesses received loans, compared to 23 percent for nonminority-owned businesses(6).  And access itself is not the only issue. Studies have shown minority owners, even when they need funding, are less likely to seek loans from banks for fear of rejection(7). 

There are multiple NJEDA administered programs that focus on the problems of minority access to financial capital. The recently-expanded Angel Investor Tax Credit includes a 5 percent credit for investments made in firms located in Opportunity Zones and minority- or women-owned firms, and the new NJ Accelerate program matches loan funding up to $250,000 for start-up businesses, with an additional 5 percent loan for minority- and women-owned business enterprises. Furthermore, the NJEDA recently released a request for information to inform the potential creation of a diversity seed fund that would focus on driving capital to Black- and Latinx-owned enterprises. These programs, together with Governor Murphy’s other investments in a more holistic approach to addressing the human capital debt, should help move us toward a stronger, fairer New Jersey.

For more information on the Economist’s Corner, or to view the archive of Economist’s Corner postings, please visit www.njeda.gov/economistcorner.

Sources:
1  Jacob Mincer, Gary Becker, and James Heckman, to name a few
2 Ladson-Billings, G. (2006). From the achievement gap to the education debt: Understanding achievement in      US schools. Educational researcher, 35(7), 3-12.
3 Fairlie, Robert, and Alicia Robb. 2010. “Disparities in Capital Access between Minority and Non-Minority-Owned Businesses: The Troubling Reality of Capital Limitations Faced by MBEs.” Minority Business Development Agency, U.S. Department of Commerce, Washington, DC.
4. Barr, M. S. (2015). Minority and women entrepreneurs: Building capital, networks, and skills. Hamilton
Project Discussion Paper 2015-03. Washington, D.C.: Brookings Institution.
5 Robb, Alicia. 2013. “Access to Capital among Young Firms, Minority-Owned Firms, Women-Owned Firms, and High-Tech Firms.” Office of Advocacy, U.S. Small Business Administration, Washington, DC.
6 Fairlie and Robb, 2010.
7 Bates, Timothy, and Alicia Robb. 2013. “Small-Business Viability in America’s Urban Minority Communities.” Urban Studies. http://usj.sagepub.com/content/51/13/2844.full.pdf+html.

 

TRENTON, N.J. (March 10, 2020) – The New Jersey Economic Development Authority (NJEDA) today released a request for information (RFI) seeking input from stakeholders on the need for a “Green Fund” to support investments in clean energy technology. This is an important step toward increasing private investment in the deployment of clean energy technologies such as energy efficiency and renewable energy.
 
“Investing in New Jersey companies that are deploying solutions to pressing clean energy challenges is not only critical for protecting our environment, but is also an opportunity to bolster our economy and create good jobs for New Jersey residents,” said NJEDA Chief Executive Officer Tim Sullivan. “This RFI is an important first step that will pave the way for us to create a green financing mechanism, such as a Green Bank or a Green Fund, that effectively channels public and private funding to achieve our bold clean energy goals.”
 
Governor Murphy’s New Jersey Energy Master Plan sets forth a robust, actionable set of seven strategies and recommendations to enable the State to achieve its ambitious commitments to expanding clean energy and reducing greenhouse gas emissions between now and 2050. The plan recognizes that meeting these commitments will require a significant amount of private capital investment—and that New Jersey’s government can and should play a critical role in mobilizing this capital by expanding opportunities for innovative and low-cost financing and leveraging public dollars to grow private sector investment.

“Achieving the goals outlined in the Energy Master Plan is critical to protecting New Jersey’s environment and long-term economic success. In issuing this RFI, we’re doing the work today to ensure we’ll have the capital investments we’ll need tomorrow to deploy cleantech solutions on a large scale. This includes establishing a green financing mechanism that works for New Jersey’s business, investors, and workers,” said New Jersey Board of Public Utilities President Joseph L. Fiordaliso.

To date, financing mechanisms similar to the fund the NJEDA is considering have been established in nine states and a number of municipalities and counties across the United States. Green financing mechanisms are also under development in several other states. The NJEDA is considering a wide range of approaches to establishing and operating a Green Fund that will achieve the State’s goal of stimulating private sector investment in clean energy; rapidly reducing New Jersey’s carbon footprint and the emission of harmful pollutants into the State’s air and water; and providing direct economic benefits to New Jersey residents such as good jobs and lower energy costs.
 
The RFI released today seeks input from all  individuals and organizations that have an interest in how a Green Fund may be established and operate in the State, including commercial banks, specialty lenders, businesses developing clean energy initiatives in New Jersey, current and potential suppliers within the clean energy supply chain, and organizations with specialized knowledge and expertise related to the creation and operation of green banks, green funds, and similar financing mechanisms. The questions focus on standing up the proposed Green Fund as well as how to best manage it over the long term to ensure the greatest benefit for New Jersey.
 
The RFI is available here: https://www.njeda.gov/Bidding-Opportunities-General/Economic-Transformation-RFIs

All questions concerning this RFI must be submitted in writing no later than 11:59pm ET, on March 27, 2020 via e-mail to: RFI-PotentialGreenFund@njeda.com. The subject line of the e-mail should state:  QUESTIONS-2020 RFI-OET-CE-102—POTENTIAL GREEN FUND.” Answers to questions submitted will be publicly posted on the Authority’s website on or about April 2, 2020.
 
All RFI responses must be submitted in writing no later than 11:59pm ET, on April 17, 2020 via e-mail to:  RFI-PotentialGreenFund@njeda.com . The subject line of the e-mail should state: “RFI Response-2020-RFI-OET-CE- 102-Potential Green Fund.”
 
To read Governor Murphy's full economic plan, please visit: https://nj.gov/economicplan
 
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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Company Offers Banking Services and Financial Literacy and Personal Finance Tools
 
TRENTON, N.J. (March 10, 2020) – The New Jersey Economic Development Authority (NJEDA) today approved a $250,000 convertible note for Mobility Capital Finance, Inc. (MoCaFi) through the NJ CoVest Fund. The Newark-based financial technology company plans to use the financing to build up its business operations, product development, and sales revenue.

The NJ CoVest Fund helps emerging technology companies like MoCaFi scale commercialization.
MoCaFi is a data-driven, mobile community bank that serves financially underserved communities by offering low-cost access to banking services, tools to build credit and access to capital at scale. The company’s financial inclusion platform includes a mobile app and a prepaid Mastercard® debit card. The card enables customers to access financial services such as check cashing, custom loans, sending money, debit cards, etc. at low or no cost from anywhere in the country. MoCaFi also offers its users financial literacy, data analytics and personal finance tools. MoCaFi’s mobile app is available on Android and iOS systems.

“We started MoCaFi to be the community bank of the future and to provide low-cost, personalized financing to a population that has been overlooked for far too long,” said MoCaFi Founder & Chief Executive Officer Wole Coaxum. “The funding we’ll receive through NJ CoVest will be instrumental in enabling us to scale our business and expand our value to customers.”

Under Coaxum’s leadership, MoCaFi graduated from Newark Venture Partners (NVP) Lab accelerator in the spring of 2018 and is based in NVP’s coworking space in Newark.
 
The NJ CoVest Fund provides funding to New Jersey-based early-stage technology companies in the form of convertible notes with warrants, requiring a negative pledge and springing lien on protected intellectual property. No payments are required on the notes for seven years to allow companies sufficient time to grow. With a total funding pool of $3 million, eligible technology companies can receive investments ranging from $100,000 to $250,000. NJ CoVest funds feature three percent interest and 10-year maturity. A complete list of NJ CoVest Fund program guidelines and company requirements and an application can be found at www.njeda.gov/njcovest.

“Under Governor Murphy’s leadership, the NJEDA is working hard to increase access to capital for emerging companies, with a particular focus on building an inclusive innovation ecosystem that reflects New Jersey’s diverse population,” said NJEDA CEO Tim Sullivan. “Supporting minority-led companies like MoCaFi that focus specifically on serving underrepresented communities bolsters our work and moves us closer to our goal of a stronger, fairer New Jersey economy.”

Today’s NJ CoVest Fund approval comes less than two weeks after the NJEDA issued a Request for Information seeking insights into the obstacles and disparities that Black and Latinx entrepreneurs face as well as suggested measures that could address these inequalities. Responses to the RFI are due by April 23.

To learn about the multitude of resources available to help technology and life sciences companies thrive, visit https://www.njeda.gov/tls and follow @NewJerseyEDA on Facebook, Twitter, and LinkedIn.

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Teleplus.jpg
TelePlus HealthCare Founder Dr. Suzanne Shugg among 14 female entrepreneurs to participate in the inaugural information session and office hours of the newly-launched New Jersey chapter of Golden Seeds. 
 

TRENTON, N.J. (March 6, 2020) – TelePlus HealthCare Founder Dr. Suzanne Shugg was among 14 female entrepreneurs to participate in the inaugural information session and office hours of the newly-launched New Jersey chapter of Golden Seeds. The event, hosted in partnership with First Lady Tammy Murphy and the New Jersey Economic Development Authority (NJEDA), afforded entrepreneurs the opportunity to meet one-on-one with investors and receive feedback on their business models. Golden Seeds is a national angel investor network dedicated to investing in women-led companies.

Dr. Shugg, a serial New Jersey entrepreneur, pitched her Summit-based healthcare technology startup to investors and described her company’s integrated software platform that is designed to improve healthcare with a preventative and telemedicinal approach. She detailed how TelePlus HealthCare connects patients who have heart failure or sleep apnea using mobile devices to monitor their condition. Teleplus Healthcare’ platform aims to improve patient outcomes by providing patient education, scientific management algorithms, efficiently identifies patients who need expedited management. In addition, TelePlus has partnered with University of Pennsylvania to start the first MD education certification and sleep management platform that was completed this week. 

New Jersey is home to 13 of the top 20 pharmaceutical companies, and numerous world-class hospitals and research universities.

“Locating in the Garden State gives us access to the specific industry players that we’re trying to reach,” Dr. Shugg said. “I was excited to learn about the newly-created New Jersey chapter of Golden Seeds and thrilled to see women building up women during last week’s event.”

Dr. Shugg also noted she that she gained insight into Golden Seeds’ investing process and invaluable feedback during her time at the event. She hopes to continue the conversation with several investors in the weeks ahead.  

“Providing access to capital is fundamental to building a stronger and more diverse and inclusive innovation ecosystem in New Jersey,” NJEDA Chief Executive Officer Tim Sullivan said. “Under Governor Murphy’s leadership, we’re continuing to create ways to connect women-led businesses to funding and to provide mentoring opportunities for female businesses leaders.”

Last week’s event was held at The Co-Co, a collaborative workspace in Summit. The women-focused coworking and co-learning space for entrepreneurs and solopreneurs participates in the NJEDA’s NJ Ignite program. NJ Ignite helps technology and life sciences startup companies realize the benefits of collaborative workspaces – incubators, accelerators, and coworking spaces – by providing up to nine months of rent support for startup technology and life sciences businesses that are moving to an approved collaborative workspace. To date, 18 collaborative workspaces have been approved to participate in the program.
Dr. Shugg, practices as a lipid specialist at NJ Cardiology Association and was an adjunct professor at Rutgers University for the past several years. She also previously founded NJ-based Scientific Wellness.

To learn about the multitude of resources available to help technology and life sciences companies thrive, visit https://www.njeda.gov/tls and follow @NewJerseyEDA on Facebook, Twitter, and LinkedIn.

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TRENTON, N.J. (March 5, 2020) – The New Jersey Economic Development Authority (NJEDA) today announced that it will host a series of NJEDA Roadshow events, designed to raise awareness of the Authority’s resources for municipalities, communities and businesses of all sizes across all sectors. The events, which will be held in all 21 counties, are being created in coordination with economic development partners at the county and municipal levels.

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.

The Roadshows will give business owners, investors, entrepreneurs, and community partners the opportunity to learn all that the NJEDA offers, without having to travel outside of their local areas. Attendees will hear presentations by NJEDA staff and will then have the opportunity to ask questions.

Since the beginning of Governor Phil Murphy’s administration in 2018, the NJEDA has significantly broadened the financial and technical support it provides to small businesses, developers, investors, and people working to revitalize commercial corridors throughout New Jersey’s cities and towns.

“Under Governor Murphy’s leadership, the NJEDA and our partners throughout the administration have developed a robust suite of new tools and programs to invest in people, encourage innovation, and revitalize local communities,” said NJEDA Chief Executive Officer Tim Sullivan. “Through these roadshows, we’re taking our resources directly to the marketplace and ensuring that local municipalities, counties, and business owners know all that we have to offer.”

Attendees at the Roadshow events will hear about the following tools, in addition to many others:

  • A $1 million microbusiness loan pilot program targeted to businesses with fewer than 10 employees that contribute great vitality to our communities but who often cannot qualify for “small business” programs;
  • A $15 million Small Business Access loan program, which provides access to capital to minority-, women-, LGBT-, veteran- and immigrant-owned businesses;
  • A $15 million Brownfield Redevelopment Loan program, designed to return legacy industrial sites to productive reuse;
  • Multiple new technical assistance programs to help municipalities, small businesses and entrepreneurs acquire the skills and credentials needed to thrive in the state’s innovation economy;
  • NJ Ignite, which provides critical rent support to early-stage New Jersey companies working from one of the 18 collaborative coworking spaces in the Ignite network throughout the state;
  • An enhanced Angel Investor Tax Credit that provides a 20% credit for qualifying investments in New Jersey startups (up from 10% prior to the governor signing an enhanced bill into law) and a 5% additional credit if the business is women- or minority-owned, or located in one of the state’s 169 Opportunity Zones.

The first three Roadshows will be held March 11 in Passaic County, March 12 in Somerset County, and March 16 in Atlantic County. Information about these events, and others that are currently scheduled, can be found at: https://www.njeda.gov/about/Public-Information/County-Roadshow-2020
 
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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Notice of Public Meeting

The New Jersey Economic Development Authority's next public Board Meeting will be held on Tuesday, March 10, 2020 at 10 a.m. at the EDA offices at 36 West State Street, Trenton. 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.
 
NJEDA offers the public the opportunity to offer public comments during the Open portion of its Board Meetings. Pursuant to provisions of the Open Public Meetings Act, N.J.S.A. 10:4-12, NJEDA is entitled to permit, regulate or prohibit public participation in its meetings.  Members of the public who are interested in offering comment should review the NJEDA’s policy on public comment, which is established to maintain order and prevent disruption of the meeting. The NJEDA’s policy on public comment can be found at www.njeda.gov/publiccomment.

Notice of Public Hearing (TEFRA)

The New Jersey Economic Development Authority (the “Authority”) will hold a public hearing in accordance with the public notice requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended, on March 10, 2020 at 10:00 a.m., at the offices of the Authority, located at 36 West State Street, Trenton, New Jersey 08625, with respect to the following application for private activity bond financing:

Application Number: PROD #00187739

Name and Address of Applicant, Operator and Manager of Project: 

Yeshivat Yagdil Torah Inc
100 James Street, 
Lakewood, New Jersey 08701

Additional Operator/Tenant: Yeshivas Ahavas Torah Inc

Project Location: 

100 James Street, 
Lot 10 in Block 345,
Lakewood, New Jersey 08701

Maximum Amount of Issue Requested: Not exceeding $5,000,000

Description of Project:
 

Bonds are to be issued to (i) refinance existing debt of the Applicant that was used for the purchase and rehabilitation of the buildings at the Project Location for use as a school; and (ii) fund the construction of additional facilities, including a study hall, expanded gym area and dining area, all purpose room and classrooms. Proceeds of the bonds will also pay certain costs of issuing the bonds and fund various funds and accounts. 
 
At the meeting, members of the public may appear in person or by attorney to express their views, which may either be provided orally or may be submitted in writing at the Authority's address above, concerning the proposed issuance of bonds and the location and nature of the Project to be financed thereby.

PRIVATE ACTIVITY BOND FINANCINGS OF THE NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY ARE NOT OBLIGATIONS OF THE STATE OF NEW JERSEY, NOR ANY COUNTY OR MUNICIPALITY THEREOF. FUNDING FOR SUCH FINANCINGS ARE SECURED PRIVATELY THROUGH CONVENTIONAL LENDING SOURCES.