TRENTON, N.J. (November 19, 2018) – The New Jersey Economic Development Authority (NJEDA) is now accepting applications for a new round of funding for municipalities and counties to develop plans to build or augment their local innovation ecosystems. This second round of the Innovation Challenge follows an impressive response to round one of the Challenge, under which nine New Jersey communities were each awarded $100,000 to advance their planning projects in partnership with higher education institutions and other strategic partners. 

The Innovation Challenge was initially announced by Governor Murphy in July, with the first round of approvals unveiled in September. Based on the evaluation and scoring of proposals received, nine contracts of $100,000 each were approved by the NJEDA Board for City of Bridgeton, City of New Brunswick, Passaic County, City of Trenton, Atlantic County, City of Atlantic City, Camden County, Union Township, and Monmouth County.

Due to the robust response to the initial phase of the Innovation Challenge, the NJEDA has allocated an additional $500,000 for grants of up to $100,000 each through a second round.

“As the EDA team begins working with each of the first round of Innovation Challenge winners, we eagerly anticipate proposals for additional projects that will help to lay the groundwork for Governor Murphy’s goal of a stronger and fairer economy,” NJEDA Chief Executive Officer Tim Sullivan said. “Municipalities and counties are embracing the idea of making New Jersey the State of Innovation by engaging with public and private entities to invest strategically in our communities in ways that will lead to inclusive and sustainable economic development.”

Through the Innovation Challenge, the Governor invited communities to challenge old ways of thinking and consider creative and groundbreaking approaches to building public-private and community partnerships, nurturing entrepreneurship, and upgrading infrastructure.

Planning proposals may focus on any number of elements, including:
 

• Driving inclusive economic growth and increasing opportunities to build wealth
• Improving supportive infrastructure, such as broadband capacity, walkability, or access to public transit
• Growing the number of local small businesses
• Providing better access to STEM jobs and other career opportunities
• Attracting top talent and employers
• Increasing commercial activity in under-developed metro areas
• Building an entrepreneurial culture

Specific scoring criteria are outlined in the Innovation Challenge application, and applications will be accepted on a rolling basis. The nine municipalities/counties that were awarded planning contracts through round one of the Innovation Challenge are not eligible to apply for the Innovation Challenge Program in a lead role, but may be included as a partner in applications where they play a non-lead role.

A municipality or county that submitted a proposal under the first round but was not awarded a planning contract is welcome to re-apply.

NJEDA staff recently kicked off a series of meetings to begin working with the nine municipalities and counties that were awarded funding through the pilot round of the Innovation Challenge. The first round of planning projects is expected to be completed within six to nine months.

More details about each of the winning Innovation Challenge projects and an application for the second round of funding can be found at https://www.njeda.gov/innovationchallenge.

About Us

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.

TRENTON, N.J. (November 16, 2018) – Somerset-based Reflik, Inc. and Gridless Power, located in Collingswood, are the first companies to close on funding through the NJ Covest Fund, the New Jersey Economic Development Authority (NJEDA) announced today.

The NJ CoVest Fund is designed to bridge the funding gap between product development and commercialization. The Fund furthers the NJEDA’s ability to support businesses throughout their lifecycle.  
The two emerging-stage technology companies received $250,000 in financing through the Fund.

“New Jersey once held the leading position in driving American innovation, and the time to reclaim that leadership is now,” NJEDA Chief Executive Officer (CEO) Tim Sullivan said. “NJEDA’s continuum of resources for growing businesses, from financing to networking and mentoring opportunities, is designed to support Governor Murphy’s plan for making New Jersey ‘The State of Innovation’.”

Reflik, located in Somerset, creates and maintains a talent acquisition and recruitment platform that utilizes its extensive network of recruiters and industry professionals to create efficiency for human resource professionals looking to find top candidates in less time. The funding provided to Reflik from the NJ Covest fund is matched to funds raised from regional angel investors. MGM Resorts, Canon, and Marsh & McLennan are among the company’s customers.

“It’s an exciting time for us at Reflik as we broaden our network to help our clients find the top-notch talent they are seeking,” Reflik Co-Founder and CEO Ashish Vachhani said. “Thanks to funding from the NJ CoVest Fund, we’ll be able to hire additional staff and expand our customer base.”

Renewable energy company Gridless Power Corporation will use funding from the NJ CoVest Fund loan to further its mission to design, manufacture, and market portable rechargeable batteries that provide vital energy to areas around the world, often in extreme conditions. Since Superstorm Sandy in 2012, when emergency personnel conducting search-and-rescue operations turned to Gridless Power’s batteries to keep their energy and communications systems running, the company has expanded to support a variety of users. These include construction projects, concerts, medical professionals, the Department of Homeland Security, and the cities of New York and Philadelphia. Gridless Power has added event management to the industries its products support.

“The time between product development and commercialization is an extremely critical time for companies like Gridless Power and we are grateful for the NJEDA’s support as we continue to grow,” Gridless Power Co-Founder and President Patrick Murphy said.  

NJ Covest Fund financing provided to Gridless Power complements funding received from Connected VC and an angel syndicate including members from the Investors’ Circle-Social Venture Network.  

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, with no payments due for the first seven years.

Both Reflik and Gridless Power are past participants in the NJEDA’s New Jersey Founders & Funders events. Hosted semi-annually by the NJEDA, New Jersey Founders & Funders connects early-stage technology and life sciences companies with investors in “speed dating” sessions to discuss strategies, business models, and funding opportunities with potential investors.

A complete list of NJ CoVest Fund program guidelines and company requirements and an application can be found at www.njeda.gov/njcovest.

About Us

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. 

NJEDA Establishes Dedicated Small Business Unit
Announcement Follows Recent Efforts to Expand Access to Capital for Small Business Community
 
TRENTON (November 16, 2018) –To help advance a key component of Governor Phil Murphy’s comprehensive economic plan, the New Jersey Economic Development Authority (NJEDA) today announced it has realigned operations to better foster a dynamic, supportive environment for New Jersey’s entrepreneurs and small businesses, including the creation of a new dedicated small business unit.  This follows other recent efforts of the NJEDA focused on increasing access to growth capital for historically underrepresented businesses.   
 
“Our vision for a stronger and fairer economy in New Jersey includes removing the barriers that small businesses face in growing and creating jobs here,” said Governor Murphy. “Offering greater pathways to capital and providing step-by-step support through a dedicated NJEDA unit staffed by a diverse and experienced team will help ensure that companies have the tools they need to thrive and succeed in New Jersey.”
 
The EDA’s new small business unit is charged with providing robust financial, workforce, and technical support to the State’s small business community, with a focus on historically underrepresented firms, including women, minority, veteran, disability, and LGBTQ-owned enterprises. The new unit will be led by Christina Fuentes, who has served as a Senior Business and Community Development Officer at the NJEDA since 2015, and focus on identifying economic opportunities in targeted and underserved communities. This unit will also include a Senior Small Business Liaison, a new position focused on outreach directly to historically underrepresented businesses and the organizations serving these enterprises. This position will also lead the development and implementation of proactive inclusion initiatives at the NJEDA.
 
“Making government work better is a pillar of Governor Murphy’s stronger and fairer economic plan, and the NJEDA is continuing to take steps to ensure that we are able to provide the most comprehensive and accessible assistance to small businesses in communities across the State,” said NJEDA CEO Tim Sullivan. “The NJEDA’s new small business unit will allow us to meaningfully engage with a broader group of stakeholders, and provide a dedicated resource entirely focused on creating new economic opportunities and strengthening communities.”  
 
To more efficiently and effectively reach target communities and sectors, the NJEDA also announced it is shifting its business development efforts to a geographic approach, allowing for greater capacity to help increase access to capital and training for businesses throughout the State and in all stages of development. The regional approach will help to maximize the NJEDA’s interaction with its diverse array of customers and stakeholders, including businesses and communities. Among the new resources that will be marketed to small businesses, the NJEDA announced last week that applications are now open for the $15 million Access Program. Access offers low-cost financing in the form of direct loans or loan participation and guarantees, providing more flexibility to businesses by placing greater emphasis on cash-flow with less reliance on hard collateral. In addition, the NJEDA acted to enhance its existing Premier Lender and direct lending programs, tripling the NJEDA’s loan term and amortization to 30 years and allowing for fixed interest rates for up to 30 years. 
 
Sullivan noted that the NJEDA is continuing to identify new and innovative ways to assist small businesses in support of Governor Murphy’s economic development plan goals, which is focused on improving the State’s competitiveness and business climate. This includes exploring more effective delivery models for technical assistance and identifying enhanced partnership opportunities with Community Development Financial Institutions.
 
To learn more about EDA resources for small businesses, visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter and LinkedIn.
 
To read Governor Murphy's full economic plan, please visit: www.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.
 
###
 
 

Program Sees Injection of Nearly $21 Million into New Jersey Innovation Ecosystem

TRENTON, N.J. (November 15, 2018) – The New Jersey Economic Development Authority (NJEDA) has announced the approval of a record-breaking 61 applications through the State’s Angel Investor Tax Credit Program during the third quarter of 2018. The approvals represent the infusion of nearly $21 million in private capital into 13 technology and life sciences companies throughout the Garden State. This uptick in activity highlights momentum generated by Governor Phil Murphy’s focus on re-establishing New Jersey as the State of Innovation.

The Angel Investor Tax Credit Program offers a 10 percent refundable tax credit against New Jersey corporation business or gross income tax for qualified investments in an emerging technology business with a physical presence in New Jersey and that conducts research, manufacturing, or technology commercialization in the state. Applications must be submitted within six months of the date of investment.

Between January and September, the NJEDA approved 121 Angel Investor Tax Credit Program applications representing nearly $60 million in investments made into 30 New Jersey technology and life sciences companies. 

In the third quarter alone, the NJEDA saw an 85 percent year-over-year growth in approved applications and a 2.5x year-over-year growth in investment amount and approved tax credits compared to 2017. Six companies participated in the Angel Investor Tax Credit Program for the first time between July and September.

“We are seeing a significant upswing in interest in the Angel Investor Tax Program this year, which furthers Governor Murphy’s goal of creating a stronger and fairer economy by not only investing in emerging companies, but also attracting capital into our state,” NJEDA Chief Executive Officer Tim Sullivan said.

Companies that participated in the Angel Investor Tax Credit Program for the first time during the third quarter of 2018 include:

Trinity Medical Devices, Inc. provides single patient use physician non-preference medical devices. These devices are used by hospitals, ambulatory surgery centers and homecare customers in the areas of anesthesia and respiratory.  Trinity benefited from over $3.9 million in investments made by fifteen first-time participants in the Angel Investor Tax Credit Program.  The funding was used to support immediate growth initiatives, as well as new product offerings.
 
Leap Insurance LLC. has created a technology that pre-qualifies renters and insures rent payments to landlords. The company held a ribbon-cutting ceremony in August at its new location in Jersey City, a move that was made possible by more than $1.7 million in funding secured from investors who participated in the Angel Investor Tax Credit Program in the third quarter of 2018. The funding was also used to hire additional employees in New Jersey.
 
Holmdel-based Hope Portal Services, d/b/a Hope Trust, is a technology-based trust company specializing in helping families and their loved ones with special needs. Their team of social workers, medical professionals, lawyers and financial experts craft individualized plans for caring for individuals with unique challenges, and utilize trust assets to meet the identified trust goals. Three investors have invested a total of $600,000 in the company’s pre-seed round through the Angel Investor Tax Credit program through the third quarter. The funds enabled Hope Trust to develop the technology that powers their services and hire key C-level staff.
 
Axle Technologies Inc., located in Jersey City, offers an on-demand smartphone and web-based application that provides a new age logistics and communicational platform to the trucking industry. Funding from a $20,000 investment by an investor participating in the Angel Investor Tax Credit Program is expected to support the hiring of additional employees and improving the reliability and stability of the product.

About Us

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.

TRENTON, N.J. (November 9, 2018) – The New Jersey Economic Development Authority (NJEDA) today unveiled several enhancements to its lending programs to help increase access to growth capital for small, women, minority, and veteran-owned businesses.  The NJEDA also announced that applications are now open for its newest program unveiled last month – Access, which offers small businesses more flexibility by placing greater emphasis on cash-flow with less reliance on hard collateral.

“The NJEDA is now better positioned to provide more dynamic support to small businesses, particularly those firms that have been historically underserved – a key component of Governor Phil Murphy’s plan for a Stronger and Fairer Economy,” said NJEDA CEO Tim Sullivan.  “New Jersey’s small business community employs an estimated 50 percent of our residents, and it is critical to the State’s long-term economic competitiveness that we create an environment where these businesses can thrive.”

At its monthly meeting today, the NJEDA Board approved enhancements to its Premier Lender Program, a partnership with more than two-dozen banks throughout New Jersey that is designed to help small businesses overcome financial obstacles that can stall growth and expansion through EDA loan participations and guarantees.  Changes include extending the EDA’s loan term and amortization from 10 years to 30 years. This enhancement also applies to the EDA’s direct loan programs, which can offer up to $3 million for fixed assets and up to $750,000 for working capital. In addition, the EDA will now be able to fix interest rates for up to 30 years across its small business lending programs.

Applications for the new Access program are now available via www.njeda.gov/access. NJEDA will initially be making a total of $15 million available for small businesses through Access. Basic eligibility requirements include: the business has been in operation for at least two full years; the average historical and global debt service over the past two years is at least 1.25x; and, the FICO score for 50 percent of the personal guarantors must be at least 700.

To read Governor Murphy's full economic plan, please visit: /wp-content/uploads/pdfs/StrongerAndFairerNewJerseyEconomyReport.pdf
 
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 EDA resources for businesses call EDA Customer Care at 609-858-6767 or visit https://www.njeda.gov  and follow @NewJerseyEDA on Facebook, Twitter and LinkedIn.
 
###