Furthering the Christie Administration’s commitment to supporting emerging technology companies in the Garden State, the New Jersey Economic Development Authority (EDA) has approved more than $17.6 million in Angel Investor Tax Credit investments to support four New Jersey companies. 
 
“Investors have pumped more than $46 million in private investment funding into New Jersey tech companies since the Angel Investor Tax Credit program was established last year,” EDA CEO Michele Brown said.  “This program continues to strengthen New Jersey’s competitive edge and encourage investment in our most promising companies.”   

Signed into law by Governor Christie in January 2013, the Angel Investor Tax Credit program provides credits against New Jersey corporation business or gross income tax for 10 percent of a qualified investment in an emerging technology business with a physical presence in New Jersey and that conducts research, manufacturing, or technology commercialization in the state.  Investors do not need to be New Jersey residents, nor have any state tax liabilities to take advantage of this program.

At this month’s board meeting yesterday (Dec. 9), the EDA approved Angel Investor Tax Credit investments to support emerging companies in Somerset, Mercer and Middlesex Counties. 

ElectroCore will benefit from three Angel Investor Tax Credit investments totaling $10.33 million.  The electroceutical healthcare company, whose global headquarters are in Basking Ridge, develops non-invasive, patient-administered therapies for treatment for neurological, psychiatric and gastroenterology conditions. 

A $4.25 million Angel Investor Tax Credit investment was also approved in support of Princeton-based Agile Therapeutics, a women’s health specialty pharmaceutical company focused on the development and commercialization of new prescription contraceptive products.  Agile twice benefitted from the state’s innovative Technology Business Tax Certificate Transfer (NOL) Program to support its continued growth.  Administered by the EDA, the NOL Program allows emerging technology and life sciences companies to sell net operating losses and research and development tax credits to unrelated profitable corporations in order to raise cash to finance their growth and operation.

In addition, the Board yesterday approved a $140,000 Angel Investor Tax Credit investment to support Aucta Pharmaceuticals, which is one of more than two dozen current tenants at the EDA’s Commercialization Center for Innovation Technologies (CCIT), located in North Brunswick.  Aucta Pharmaceuticals is a new drug product development company concentrating on novel and generic formulation product development. 

Twenty-one investments totaling more than $2.9 million were also approved to support New Brunswick-based Zipz Inc.  The company utilizes specialized plastics and processes to innovate the single-serve wine category.

Since the launch of the Angel Investor Tax Credit program in July 2013, the EDA has approved 102 investments, representing a total of more than $46 million in private investment in emerging companies.

Companies that have been supported through the Angel Investor Tax Credit program include Middlesex County-based United Silicon Carbide (USCi).  Four Angel Investor Tax Credit investments totaling $4.75 million were approved in 2013 to support USCi.  The company was one of two EDA-supported businesses ranked on NJBiz’s 2014 list of Fastest Growing Companies.  USCi’s technology is designed to replace silicon in semiconductor applications to increase performance and improve efficiency.  
 
USCi also previously benefitted from a $2 million Edison Innovation Green Growth Fund (EIGGF) loan.  In 2011, the Christie Administration launched the EIGGF to help New Jersey clean technology companies advance energy efficient and renewable energy products in the state.  Jointly administered by the EDA and the New Jersey Board of Public Utilities, the EIGGF offers up to $2 million to New Jersey class I renewable or energy efficiency clean technology companies that have begun generating commercial revenues and are seeking matching funding to support the growth of their business. With the positive performance of the company, up to 50 percent of the funding may be converted to a performance grant. 
 
The EDA spoke to USCi President & CEO Dr. J. Christopher Dries to learn more about how the company benefitted from the EDA’s support.

Q&A with USCi President & CEO Dr. J. Christopher Dries
 
What does funding provided through the Angel Investor Tax Credit mean to USCi?

Put simply, the Angel investor tax credit enables USCi investors to invest in the Company at a discount.  While USCi is already an attractive high growth opportunity for our investors, the ability to credit one’s NJ income tax for a portion of the investment provides even more incentive to invest in high technology enterprises based in New Jersey.  For entrepreneurs such as myself and my team, it provides additional motivation to develop and grow businesses within the state. 
 
How has additional state assistance, such as the EIGGF funding loan, contributed to the growth of USCi?

The EIGGF provided critical growth stage financing for our business when we needed it most.  Drawdowns on the loan were tied to significant commercial development milestones, and by aligning these milestones with necessary capital requirements at each stage it mitigated risk to the EDA and BPU, while focusing USCi on commercial business development.  Most importantly, the loan provided working capital for inventory builds associated with our commercial growth. 
 
What is USCi’s biggest success to date?

Our biggest success to date has been significant design wins at multi-billion dollar customers / partners.  These wins were predicated upon exceptional performance by our technical and manufacturing teams, delivering parts to the marketplace that are the best performing SiC electrical components in the world.  Putting together a dedicated team that could accomplish such a feat in a relatively short period of time makes us all at USCi exceptionally proud. 
 
What’s on the horizon for USCi?
 
A continual expansion of our product offerings at higher voltage ratings, higher currents, and availability in module form will take place over the next several years.  We intend to expand our applications engineering and sales support to Southeast Asia and Europe where many of our customers are located.  We’ve nearly doubled our revenue each year for the past several years, and I see the potential of that growth accelerating as we take market share from incumbent Silicon devices and our SiC competitors. 

For more information on the Angel Investor Tax Credit program, visit www.njeda.gov and follow us on Twitter and LinkedIn @NJEDATech.

EDA Approves Key Incentives, Including Job Retention, Creation and Investment In Camden, Newark, New Brunswick

TRENTON, N.J  (December 9, 2014) – Building on the Christie Administration’s commitment to spur economic investment, job creation, and create opportunities in the New Jersey’s urban centers, the New Jersey Economic Development Authority (EDA) today approved assistance for significant projects bringing large-scale investment to some of New Jersey’s largest cities, including Camden, Newark and New Brunswick.  As part of EDA board’s actions today to approve a range of programs, including tax incentives, loans, and bonds that span Northern, Central, and Southern New Jersey, EDA approval was given to two awards totaling nearly $160 million to support world-class businesses in the City of Camden, including the relocation, retention, or creation of nearly 1,000 jobs from Subaru of America and Cooper Health. 

“Thriving cities are the heart of the State’s economy,” said EDA CEO Michele Brown. “The projects approved today will help to spur growth in communities that have historically suffered from disinvestment and create new job opportunities for residents.”

Among the actions taken at the Board meeting, the EDA approved four projects in Newark, which involve the creation of a total of 340 new, full-time jobs and 350 construction jobs.

An award of up to $40 million over 10 years was approved through the residential Economic Redevelopment and Growth (ERG) program to advance the $170 million rehabilitation of the historic building which formerly housed Hahne & Company.  The project aims to energize the community with new residential, academic and retail space, including a Whole Foods Market and a new home for Rutgers University’s Department of Arts, Culture, and Media.
A commercial ERG of up to $2.2 million over 20 years was approved to support the $25 million redevelopment of a vacant warehouse in Newark’s Ironbound community.  Aerofarm is contemplating establishing its manufacturing operations in the facility, where it seeks to create the largest aeroponic farm in the world.  The facility also would serve as the company’s headquarters and R&D center.  Aerofarm was approved for up to $6.5 million in tax credits over 10 years through the Grow New Jersey Assistance (Grow NJ) Program to encourage the company to choose Newark over a competing location in Philadelphia.

The Board also approved assistance to help bring NJTV to the City of Newark. With the support of a $1.25 million loan through the EDA’s Direct Loan Program, Public Media NJ, Inc. will move to space at the Gateway Center.  EDA offers low-interest loans to eligible small and mid-size businesses, as well as not-for-profit organizations, for fixed assets or working capital.  Public Media will use its loan to acquire equipment and renovate the space.

Just north of Newark, a $684,000 direct loan will help establish a recording and filming facility in Union City for Water Music Recorders, Inc. Plans for the building include nine studios and two residential units.  The loan will help the related real estate entity acquire the 32,000-square-foot building.

In nearby Bayonne, manufacturer AP&G Co. was approved for up to $10 million in tax-exempt bonds to support the purchase and renovation of its new headquarters, as well as the acquisition of machinery and equipment.  AP&G was previously approved for a Grow NJ award to encourage the company to relocate from Brooklyn. The EDA offers tax-exempt bond financing to eligible manufacturing companies and not-for-profits to provide access to capital and enable entities to borrow money at a lower cost.

Considering a move to New Brunswick, Florida-based Radical Cosmetics was approved for a Grow NJ award of up to $2.25 million to encourage the company to relocate its manufacturing business and 30 jobs to the State. 

The Grow NJ Program also helped encourage growth in southern New Jersey cities.

With an expansion of its business model, healthcare service provider PATHS, LLC is considering the purchase of a new facility in Pennsauken or growing its operations in Allentown, PA. A Grow NJ award of up to $3.28 million will help encourage the company to choose New Jersey, leading to the creation of 40 new jobs and the retention of 40 “at risk” jobs.

Additionally, Grow NJ awards were approved to encourage significant investment in the City of Camden. Subaru of America was approved for up to $117.8 million to establish its new headquarters and service/training center in the City over a location in Philadelphia. This project involves the creation of 100 new jobs and the retention of 500 “at risk” jobs.  Cooper Health is considering expanding its footprint in the City by consolidating back office operations from various locations to one Camden facility rather than relocating these operations to Philadelphia. Cooper was approved for up to $39.9 million in tax credits. The project involves the retention of 353 “at risk” jobs and the creation of 19 new jobs.

The Board also approved $500,000 for Trenton-area Regional Business Assistance Corporation (RBAC) through the Loans to Lenders program, which offers capital to financial intermediary organizations who can effectively reach small businesses in local markets. These organizations have the ability to offer term loans and lines of credit to micro-enterprises and small businesses not qualified for traditional bank financing. 

EDA Board meetings are typically held at 10 a.m. on the second Tuesday of each month at 36 West State Street in Trenton.  The Board meeting schedule, as well as Board agendas and minutes, are available at www.njeda.gov.  All Board actions will take effect at the expiration of the statutory period for the Governor’s review and consideration of the meeting minutes.

The EDA is part of the State’s results-driven Partnership for Action, the hub for all economic development activity in New Jersey. The Partnership is comprised of four interconnected and highly focused organizational elements: Choose New Jersey, the Business Action Center, the Office of the Secretary of Higher Education and the EDA. 

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

Progress Continues toward Addressing Emergency Fuel Supply Challenges

Para ver esta información en español, haga clic aquí.
 

Trenton, NJ – In support of the Christie Administration’s ongoing commitment to addressing emergency fuel supply challenges highlighted during Superstorm Sandy, the NJ Economic Development Authority (EDA) today announced new approvals under the Retail Fuel Station (RFS) Program. The $7 million grant program allows targeted retail fuel stations, on and near evacuation routes, faster and more reliable access to back-up power during an energy emergency.
 
This round of 29 approvals represents grants totaling $1.23 million.  To date, 62 stations have completed  required environmental and design reviews and can now move forward with  plans to install back-up power solutions using grants provided through the RFS Program.  Of the 62 approvals, 42 will install permanent generators, while 20 will rely on “quick connect” devices, which provide connection points for mobile generators.  Grants for the approved stations total more than $3 million.

“The RFS program is a critical component of the State’s overall strategy to rebuild in a resilient manner,” said EDA CEO Michele Brown.  “Each new approval is meaningful for the sense of security it will help to foster on a very local level during emergencies.”

The RFS Program, which is voluntary, is funded through the federal Hazard Mitigation Grant Program. Eligible stations, which were identified by state homeland security and emergency management personnel, will use the funds to purchase generators or quick connects.  Stations were targeted for the program based on factors including proximity to evacuation routes and gasoline storage capacity. The application deadline was March 21, 2014.
                                                                                              
The  stations approved under the RFS Program are in addition to the 22 gas stations located on the Garden State Parkway, the New Jersey Turnpike, and the Atlantic City Expressway already equipped with back-up power for outages.  

Under the RFS Program, a significantly broader reach of gas stations within a quarter of a mile of key evacuation routes across the State will benefit from quicker access to back-up energy.

The RFS Program is two-tiered: targeted retail stations along targeted routes with fuel storage capacity between 30,000 gallons and 35,000 gallons were eligible for up to $15,000 to purchase quick connect technology or offset a portion of the cost of purchasing a generator; targeted retail stations along critical routes with fuel storage capacity greater than 35,000 gallons were eligible for up to $65,000 in funding toward the purchase and installation of an onsite generator.

Under the grant parameters, eligible fuel stations were required to serve both diesel and gasoline, except in very limited instances where a station does not sell diesel but is the only available retail fuel outlet within a quarter mile of an identified evacuation route. In addition, a limited number of gas stations with less than a 30,000 gallon capacity were eligible for $15,000 in grant funding as they were also the only stations available on an identified evacuation route.

A map and list indicating the location of the approved stations is available at www.njeda.gov/retailfuelstations.

In addition to the RFS Program, the State also acquired and will maintain a strategic cache of emergency generators that can be deployed through state emergency responders during a major power outage to critical assets such as shelters, hospitals, public safety facilities, and retail fuel stations.  The generator cache will be stored by the New Jersey Department of Transportation at strategically located facilities to help cover north, central and south response needs.  

In addition, the New Jersey Office of Homeland Security and Preparedness has been working with the U.S. Department of Homeland Security to explore ways to increase the resiliency of the State’s petroleum storage, distribution and supply systems.

Se continúa avanzando en la solución de los problemas de suministro de combustible de emergencia

Trenton, NJ – En apoyo al compromiso de la Administración Christie para abordar los problemas de suministro de combustible de emergencia, evidenciados por el huracán Sandy, la Autoridad de Desarrollo Económico de New Jersey (EDA, por sus siglas en inglés) anunció hoy que fueron aprobadas nuevas estaciones de servicio bajo el Programa de Estaciones de Servicio Minorista (RFS, por sus siglas en inglés). Los US$7 millones concedidos por el Programa, permitirán que las estaciones de combustible minoristas -que se encuentran cerca de las rutas de evacuación- tengan combustible de respaldo de manera más rápida y confiable durante una emergencia energética.
 
Esta nueva ronda de 29 estaciones aprobadas, representa un monto total en subsidios de US$1.23 millones. Hasta la fecha, en 62 estaciones minoristas se han completado las requeridas revisiones medioambientales y de diseño y, ahora, se puede seguir adelante con los planes de instalar soluciones de respaldo de energía mediante subsidios proporcionados a través del programa de RFS.  De las 62 aprobaciones, en 42 de ellas se instalarán generadores permanentes, mientras que 20 estaciones se basarán en dispositivos de "conexión rápida", que proporcionan puntos de conexión a generadores móviles. Los subsidios para las estaciones aprobadas suman en total más de US$3 millones.

"El programa de RFS es un componente crítico de la estrategia general del Estado para reconstruir con resiliencia" -dijo la Directora Ejecutiva de la EDA, Michele Brown.  "Cada nueva aprobación es significativa para ayudar a crear un sentimiento de seguridad a nivel muy local durante las emergencias".

El programa de RFS, que es voluntario, se financia a través del Programa de Subsidios para Mitigación de Riesgos de índole federal. Las estaciones elegibles que fueron identificadas por el personal de seguridad del Estado y gestión de emergencias, utilizarán los fondos para comprar generadores o conectores rápidos. Las estaciones fueron identificadas por el programa a partir de factores estratégicos, tal como la proximidad a rutas de evacuación y capacidad de almacenamiento de gasolina. La fecha límite para la presentación de solicitudes, era el 21 de marzo de 2014.

Las estaciones de servicio minorista, aprobadas bajo el programa de RFS, se suman a las 22 gasolineras ubicadas en la Garden State Parkway, New Jersey Turnpike y Atlantic City Expressway, ya equipadas con energía de respaldo durante los cortes de energía.   

Bajo el programa de RFS, una cobertura mucho más amplia de gasolineras dentro de un cuarto de milla de las rutas de evacuación críticas, en todo el Estado, tendrá como ventaja el acceso más rápido a energía de respaldo.

El programa de RFS tiene dos niveles: uno, dirigido a estaciones de servicio a lo largo de rutas identificadas con capacidad de almacenamiento de combustible entre 30,000 galones y 35,000 galones, elegibles para un subsidio de hasta US$15,000 para comprar tecnología de conexión rápida o compensar en parte el costo de comprar un generador; el otro, concentrado en estaciones de servicio minorista a lo largo de rutas críticas con capacidad de almacenamiento de combustible superior a 35,000 galones, elegibles para un subsidio de hasta US$65,000 para financiar la compra e instalación de un generador en el sitio.

Bajo los parámetros de esos subsidios, las estaciones de servicio de combustible elegibles proveerán tanto diésel como gasolina, excepto en casos muy limitados cuando en una estación no se vende diésel pero es el único punto de venta de combustible al por menor sólo disponible dentro de un cuarto de milla de una ruta de evacuación identificada. Además, un número limitado de gasolineras con una capacidad menor de 30,000 galones, fue elegible para un subsidio de US$15,000, en la medida en que también eran las únicas estaciones disponibles en una ruta de evacuación identificada.

Un mapa y una lista que indican la ubicación de las estaciones aprobadas, están disponibles en www.njeda.gov/retailfuelstations.

Además del programa de RFS, el Estado también adquirió y mantendrá una reserva estratégica de generadores de emergencia que pueden ser implementados a través de servicios de emergencia estatal durante un apagón de envergadura para asistir a infraestructura crítica, tal como refugios, hospitales, instalaciones de seguridad pública y estaciones de combustible al por menor.  La reserva de generadores será almacenada por el Departamento de Transporte de New Jersey en instalaciones ubicadas estratégicamente para ayudar a cubrir las necesidades de atención en el Norte, Centro y Sur de New Jersey.

Además, la Oficina de Seguridad Interna y Preparación de New Jersey colabora con el Departamento de Seguridad Nacional de los Estados Unidos para explorar otras maneras de aumentar la resiliencia de los sistemas de almacenamiento, distribución y suministro de petróleo del Estado.

TRENTON (December 4, 2014) – Continuing the Christie Administration’s commitment to  growing the state’s vibrant technology industry, the New Jersey Economic Development Authority (EDA) announced today that it has closed on a $1 million loan to support Bergen County-based Ivy Sports Medicine.

Located in Montvale, Ivy Sports Medicine manufactures and markets innovative tissue growth and repair products.  The EDA approved the loan through the Edison Innovation VC Growth Fund in July and closed the transaction in late November.  The company plans to use the funding for growth capital, and anticipates adding employees to its New Jersey workforce within the coming years.  
“We encourage emerging and established technology companies in New Jersey to take advantage of the  broad array of programs the State offers to support this important industry,” EDA CEO Michele Brown said.  

Created in 2011 to enhance support of early stage businesses that have attracted funds through venture capital investors, the Edison Innovation VC Growth Fund helps companies directly finance uses such as hiring key staff, product marketing and sales. Up to $1 million in subordinated convertible debt financing is available for venture capital-supported technology companies with minimum trailing 12 month commercial revenues of $500,000.  There is a 1:1 VC match funding requirement.

The EDA recently announced that Ivy Sports Medicine is one of 44 companies that will receive funding through the state’s Technology Business Tax Certificate Transfer (NOL) Program in Fiscal Year 2015.  These 44 recipients will share a total of $54 million through the program.  Ivy Sports Medicine also received funding through the program last year.  Administered by the EDA and the New Jersey Department of Treasury’s Division of Taxation, this competitive program enables tech and biotech companies to sell New Jersey tax losses and/or research and development tax credits to raise cash to finance their growth and operations.

For more information on Edison Innovation VC Growth Fund, the NOL Program and other support for the technology industry, visit www.njeda.gov and follow us on Twitter and LinkedIn @NJEDATech.

TRENTON (Nov. 10, 2014) – Furthering the Christie Administration’s commitment to bolstering the State’s technology industry, the New Jersey Economic Development Authority (EDA) today announced that technology companies across the State were approved for assistance through the various programs available to grow this critical sector of New Jersey’s economy.

“Strengthening the technology industry in New Jersey remains a top priority of the State and the EDA,” said CEO Michele Brown. “We’re pleased to offer a continuum of assistance to support these innovative and dynamic companies throughout their life cycle.”

At today’s Board meeting, the EDA approved a $400,000 Edison Innovation VC Growth Fund loan for Phone.com, a cloud-based telecommunications company located at NJIT’s Enterprise Development Center in Newark. The company will use the loan to support growth capital needs, including marketing and product development.  Phone.com has received various awards, and was most recently recognized in the Inc. 500/5,000 list and Deloitte Technology’s Fast 500.  The company, which also benefited from an Edison Innovation VC Growth Fund loan in 2013, expects to expand its workforce to 16 employees within the coming years.

Launched in 2011, the Edison Innovation VC Growth Fund supports venture capital supported technology companies with minimum trailing 12 month commercial revenues of $500,000.  Up to $1 million in subordinated convertible debt financing is available to support growth capital needs, including key hires, product rollout, product enhancement, and marketing/sales.  There is a 1:1 VC match funding requirement.

An Angel Investor Tax Credit investment was also approved to support Eos Energy Storage LLC, an Edison-based company that develops novel, low-cost energy storage solutions for the electric utility and transportation industries.  To date in 2014, 32 investments have been approved under the Angel Investor Tax Credit Program, representing the injection of nearly $12 million of capital into New Jersey emerging technology and life sciences companies.

Signed into law by Governor Christie in January 2013, the program provides credits against New Jersey corporation business or gross income tax for 10 percent of a qualified investment in an emerging technology business with a physical presence in New Jersey and that conducts research, manufacturing, or technology commercialization in the state.

In other Board action, tax credits of up to $7.45 million over ten years were approved through the Grow New Jersey Assistance Program to support Diogenix Inc. The molecular diagnostics company is considering moving a small laboratory from Maryland to the City of Camden in order to expand and transform it into a federally-compliant and accredited facility. The project would involve the creation of an estimated 71 new jobs in the State.

Additionally, through the Clean Energy Manufacturing Fund (CEMF), assistance was recently approved for two other New Jersey-based technology companies – ENER-G Rudox, Inc. and SIEL America, Inc.  Together, these companies anticipate the creation of more than 30 new jobs.

ENER-G Rudox, which develops, delivers and finances sustainable energy solutions and technologies for the North American market, was approved for up to $3.3 million.  The funding will help the company create an advanced manufacturing facility for cogeneration and energy efficient systems in East Rutherford.   SIEL America, a Parsippany-based manufacturer of grid-tied and photovoltaic inverters, was approved for $500,000 to support working capital needs.

A joint program of the EDA and the New Jersey Board of Public Utilities, CEMF allows New Jersey clean technology manufacturers to receive funding under two separate components: project assessment and design, and project construction and operation.  In total, a qualified manufacturer of Class I renewable energy or energy efficiency systems, products or technologies may be eligible to receive up to $3.3 million in grants and loans.  Up to $300,000 is available as a grant to assist with the manufacturing site identification and procurement, design, and permits. Up to $3 million is available as a ten-year loan to support site improvements, equipment purchases, and facility construction and completion.

For additional information about the EDA’s support of the technology industry, follow us on Twitter and LinkedIn @NJEDATech.  To learn more about opportunities for business growth throughout New Jersey, visit the State’s business portal at www.NewJerseyBusiness.gov