Small Business Assistance Highlighted

TRENTON, N.J. (March 13, 2013) – In support of the Christie Administration’s efforts to increase access to capital for growing businesses across the State, the New Jersey Economic Development Authority (EDA) today announced support for large and small companies representing a range of industries and geographic areas.

“From low-cost lending programs to the enhanced Grow NJ incentive, EDA offers a wide array of resources to help companies maintain or expand their operations in the State,” said EDA CEO Michele Brown.  “Our focus on New Jersey’s small businesses remains particularly critical as we work to strengthen our communities and expand employment opportunities for our residents.”

Brown noted that the EDA works with over 40 Premier Lender banking partners to overcome the financial obstacles that can stall the growth of small businesses in the State.

To facilitate its expansion in Bellmawr, National Paper Recycling, Inc. is taking advantage of the New Jersey Business Growth Fund, a partnership of the EDA and PNC Bank.  The company, which has operated as a paper recycler for more than a decade, was approved for a loan that includes a 25-percent EDA guarantee. 

Also in Camden County, Imagine Audio is utilizing the Small Business Fund to acquire property and establish a permanent home in Cherry Hill.  The company, which installs automotive electronics and accessories, was approved for a loan from Investors Bank that includes a 25-percent EDA participation. R & R Investments also tapped the Small Business Fund to acquire property in Westville to support its expansion. The Gloucester County business owns various real estate investment properties for its affiliated operating companies – R & R Associates, R & R Wholesale and S and C Green World Supply. R &R was approved for a loan from Fulton Bank that includes a 47.7-percent EDA participation.

Through the Stronger NJ Business Loan Program, Ocean County-based Berkeley Island Marine, Inc. was approved for a working capital loan to support its ongoing recovery in the aftermath of Superstorm Sandy.  The marine repair service business is located at Trixies Landing along the Barnegat Bay. The loan program, funded through New Jersey’s Community Development Block Grant Disaster Recovery allocation, offers loans of up to $5 million to help small businesses and non-profits that were impacted by Superstorm Sandy, as well as businesses looking to expand within storm-impacted communities.

At its monthly meeting, the Board was updated on the EDA’s strategic partnership with UCEDC. In 2011, EDA entered into a three year contract with the not-for-profit economic development corporation to further expand the array of training, technical and financial assistance services available to entrepreneurs and small businesses throughout New Jersey.  In 2013, UCEDC established a satellite office in Atlantic City with Main Street Atlantic City and is also collaborating with other small business advocates, including Stand Up for Salem, the Latin American Economic Development Association and the Cumberland County One Stop Career Center.  Last year, UCEDC trained or mentored more than 1,500 entrepreneurs, held over 65 business training workshops across the State, and, provided close to $2.9 million in loans to 96 small businesses, 30 percent of which were minority- or woman-owned enterprises.

The EDA Board also approved three projects under the enhanced Grow New Jersey Assistance Program. Spanning Bergen, Middlesex and Burlington counties, these projects would involve the total private investment of more than $10 million, the creation of 120 new jobs and the retention of over 200 jobs at risk of being relocated outside of New Jersey. Together, these projects would lead to an estimated net benefit to the State of more than $88.6 million over the 20-year period required by law.

In New Brunswick, a Grow NJ award was approved to encourage engineering and equipment manufacturer Procedyne Corporation to enhance its facility in New Brunswick, rather than relocate to Pennsylvania.  With Association Headquarters, Inc.’s current lease set to expire this summer, the Board approved a Grow NJ to encourage the association management company to maintain and expand its operations in Mount Laurel instead of Pennsylvania.   To improve its operations, Sony Music is considering the relocation of employees from Manhattan to a site in Rutherford or Long Island City, New York.  The Grow NJ award was approved to encourage the global recorded music business to choose the New Jersey alternative.

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.  Created by Governor Christie and led by Lt. Governor Guadagno, the Partnership is the hub for all economic development activity in New Jersey and 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.

Support Approved for NJ Businesses in Three Counties

Trenton, NJ (February 27, 2014) – In support of Governor Christie’s commitment to assist the recovery of businesses and communities in the aftermath of Superstorm Sandy, the New Jersey Economic Development Authority (EDA) today announced approval of Stronger NJ Business loans for several storm-impacted small businesses.

“Small businesses are so important to the state’s economy – from the jobs they provide to the resources they offer to residents and other enterprises,” said Michele A. Brown, EDA Chief Executive Officer. “We are happy to support the recovery of Sandy-impacted businesses throughout the state through the Stronger NJ Business Loan Program.”

The following three businesses have been approved for working capital loans through the Stronger NJ Business Loan program after destruction of property, loss of inventory, and disruption of business following Superstorm Sandy.

• Formica Brothers Bakery (FBB), Atlantic City, was approved for a $2.24 million working capital loan for the purchase of inventory and other working capital expenses.  FBB also received a $50,000 Stronger NJ Business Grant.  Established in 1919, FBB hand crafts and bakes over 200 types of bread daily, supplying local businesses, schools and markets. FBB currently employs 36 workers, and expects to create six new jobs in the next two years.
• Royal Baking Corp., Moonachie, was approved for a $1.97 million loan.  Established 55 years ago, the company serves as a commercial bakery offering fresh and frozen products.  It currently employs 50 and expects to create 70 new positions within the next two years.
• Susan Wagner Designs Limited Liability Company, Point Pleasant, was approved for more than $73,000 in working capital assistance, between grants and loans.  The retail shop sells bridal, prom, evening and communion dresses, as well as accessories.  Proprietor Susan Wagner also designs an exclusive line of dresses for her clients.  The business currently employs one full-time and one part-time employee and plans to convert the part-time employee to full-time and add two additional full-time employees.

Stronger NJ Business loans of up to $5 million with zero interest and no principal payments for up to 24 months are available to small businesses impacted by Superstorm Sandy, as well as businesses looking to expand within storm-impacted communities.  Loans can be used to support renovation, new construction, equipment and working capital needs.

To be eligible for the Stronger NJ Business Loan program, entities within the nine most impacted counties as determined by the U.S. Department of Housing and Urban Development (Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean and Union) must evidence a minimum of $5,000 in physical damage to real property or non-perishable and non-consumable inventory; and/or demonstrate that the project will positively impact the economy of the community.

Entities outside of the nine most impacted counties must have at least one impacted location in New Jersey, defined as physical damage to the place of business (must meet the $5,000 physical damage requirement).

In accordance with New Jersey’s Community Development Block Grant (CDBG) Disaster Recovery Action Plan, EDA also administers the Stronger NJ Business Grant program, which supports businesses damaged by the storm with grants of up to $50,000, and the Stronger NJ Neighborhood and Community Revitalization (NCR) Program, which supports the long-term recovery of small businesses and communities by funding long-term economic revitalization priorities. The NCR Program also supports projects that retain or hire new employees, thus contributing to the State’s economy.

For more information on the Stronger NJ Business programs, including the complete list of eligibility and eligible uses of funds, visit www.njeda.gov/strongernjbusiness  or call EDA’s Sandy hotline at 1-855-SANDY-BZ (1-855-726-3929). 

Board Also Approves First ‘Mega Project’ under Grow New Jersey

TRENTON, N.J. (February 24, 2014) – In support of the Christie Administration’s commitment to the revitalization of the state’s urban centers, the Board of the New Jersey Economic Development Authority (EDA) today approved two transformational projects in the cities of Newark and Camden through the Economic and Redevelopment Growth (ERG) Program. Expanded and strengthened under the New Jersey Economic Opportunity Act of 2013, the ERG Program is now the state’s key developer incentive program.

“The ERG Program was designed to revitalize communities, with a specific focus on spurring significant economic development in New Jersey’s urban centers. I’m pleased that these two projects help to move that objective forward,” EDA CEO Michele Brown said. 

Washington Street University Housing Urban Renewal Associates, LLC was approved for an ERG award worth up to $23.1 million to advance a major historic renovation project. The $94.8 million project involves the rehabilitation of 15 Washington Street in Newark, a 21-story, 263,000-square-foot structure originally completed in 1930 for American Insurance Company and later donated to Rutgers. The building was home to Rutgers Law School from 1978 to 1999, and has remained vacant since that time. The proposed plan calls for its rejuvenation through the creation of an estimated 211,000 square feet of student housing. The building also would house approximately 52,000 square feet of office and other non-student residential space, including common and academic space for students and residence life staff. While the Act does not include an employment requirement for residential ERGs, the project is anticipated to create approximately 200 construction jobs.

The Board also approved Broadway Associates 2010 LLC for an ERG award worth up to $13.4 million to advance a $56.7 million project that will help advance the rehabilitation of 175 homes on 22 different street fronts in Camden, all within a half-mile of the city’s central business district.  The project will help to significantly improve conditions in the area, which is currently comprised of vacant lots and run-down homes. The homes were originally renovated in 1991 under the Department of Housing and Urban Development’s (HUD’s) Section 8 program. This project has been approved for a new 20-year Section 8 contract as part of HUD’s Rental Assistance Demonstration Program. An estimated 50 jobs are expected to be created during the construction phase.

Through the enhanced Grow New Jersey Program, Dietz & Watson, Inc. was approved for an award of up to $3.08 million annually over 10 years. The project is classified as a ‘Mega Project’ under the Economic Opportunity Act for its plans to locate a manufacturing facility in a port district, make a capital investment in excess of $20 million, and create or retain more than 250 employees. This represents the first ‘Mega Project’ to be approved by the Board. 

Established in 1940, Dietz & Watson is a family-run manufacturer and distributor known for its high-quality meats. The company lost its warehouse and distribution center in Delanco when it was completely destroyed by a fire last September. With the majority of its staff and operations relocated to Philadelphia, the company is looking to utilize the Grow New Jersey program to re-establish its presence in Burlington County. The alternative is remaining in Philadelphia. If New Jersey is chosen, the company plans to reconstruct its 160,000-square-foot cold storage building, construct a 25,000-square-foot building to house its corporate offices, and expand with the addition of a 16,000-square-foot fleet maintenance garage.

The prospective Delanco facility would create 213 new full-time jobs, and support the retention of 135 “at risk” jobs. The company estimates the capital investment of over $40.8 million.  In addition to the Grow NJ award, the Business Action Center assisted Dietz & Watson through their valuable customer service approach, providing ongoing support and interdepartmental advocacy.

“The Economic Opportunity Act’s impact on job creation and investment is already showing significant results, and the approval of Dietz & Watson for a GROW NJ award is a perfect example of why we’re so optimistic for the future,” said Lt. Governor Kim Guadagno. “With these stronger incentives, the Business Action Center’s advocacy efforts are not only more effective, but allows them to engage companies like Dietz & Watson, confident in New Jersey’s heightened competitive advantage.”

In support of Governor Christie’s commitment to assist the recovery of businesses and communities in the aftermath of Superstorm Sandy, the EDA approved the selection of Asbury Park, Sea Isle City, Keansburg and the Highlands for the first round of $5 million in grants under the Streetscape component of the Stronger NJ Neighborhood and Community Revitalization (NCR) Program. Any remaining projects from Round One that reached the minimum scoring threshold have been rolled into Round Two, for consideration for a grant from the remaining $5 million.

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.  Created by Governor Christie and led by Lt. Governor Guadagno, the Partnership is the hub for all economic development activity in New Jersey and 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. 

More information and applications for the Grow NJ and ERG programs are available at Grow NJ and ERG websites: https://www.njeda.gov/GrowNJ and https://www.njeda.gov/ERG.

To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov. For more information on the Stronger NJ Business programs, visit http://application.njeda.com/strongernjbusiness or call 1-855-SANDY-BZ (1-855-726-3929).

Neighborhood and Community Revitalization Grants Support Refurbishment of Waterfront and Downtown Areas

Trenton, NJ (February 24, 2013) – In support of Governor Christie’s commitment to helping storm-impacted small businesses and communities recover, the New Jersey Economic Development Authority (EDA) today announced that four New Jersey municipalities have been selected by the EDA from the first round of applications for $5 million in grants from the Streetscape component of the EDA-administered Neighborhood and Community Revitalization (NCR) Program.  The four selected municipalities are Highlands, Asbury Park, Keansburg and Sea Isle City. 

A total of $10 million in grants of $125,000 to $1.5 million per project will be provided for “Main Street” revitalization improvements such as, streetscapes, lighting, sidewalks, façade enhancements, and code-related and other physical upgrades to commercial areas to support the recovery of economic activity in commercial corridors in impacted towns and cities throughout the State.

“New Jersey’s downtown districts help to create cohesiveness and viability in our communities,” said EDA Chief Executive Officer Michele A. Brown. “Supporting these main street areas, particularly in Sandy-impacted communities, is critical as small businesses continue to rebuild and recover.”  

Any remaining projects from Round One, which deadlined December 6th, 2013, that reached the minimum scoring threshold have been rolled into Round Two, for consideration for a grant from the remaining $5 million.   The deadline for Round Two was January 21st, 2013.

The EDA-approved projects include: 

• Highlands – replacement of old and cracked sidewalks and curbs, installation of pedestrian-scale street lights, bike racks, benches and trash receptacles to support the community at large;
• Asbury Park – replacement of old conventional highway style poles and light fixtures with new energy efficient LED lights along its entire boardwalk.  In addition to replacing existing lighting, the city will extend lighting on the boardwalk north of Convention Hall;
• Keansburg – a revamp of Main Street and Carr Avenue to reconstruct roadways, build sidewalks and make the downtown safer for pedestrians, with repairs and improvements to the drainage systems greatly improving the economic vitality of the area;
• Sea Isle City – development of the beach-to-bay corridor, in particular development of a streetscape what will enhance the downtown business district, to help the city recover from impacts of the storm.

The four Streetscape projects from Round One will now move on for federally required environmental reviews by the DEP.   

Storm-impacted New Jersey municipalities with established traditional business districts are eligible. A ‘Main Street’ district is defined as a commercial or mixed-use zoned area with a concentration of older or historic buildings within its boundaries. Project evaluation criteria include: location in a HUD-designated impacted county, anticipated completion date, benefit to a low-to-moderate income community, applicant’s experience with projects of similar size and scope, and the extent to which the project will enhance the neighborhood and community at large.

Other support provided through the NCR program includes:

• $52.5 million allocated to help advance development and public improvement (D&I) projects with grants and/or loans, up to a maximum of $10 million per project. Under this program, $5 million has been provided to the towns of Seaside Park and Seaside Boro for demolition and debris removal following the fire, leaving $47.5 for D&I projects.
• The EDA awarded five grants of $500,000 each to five Community Development Financial Institutions to fund small business loans in the nine most impacted counties.  This represents the full $2.5 million available to CDFIs through the NCR program.

Due to unanticipated demand for grant funding under the D&I component of the program, which far exceeds the availability of funds, the EDA board today approved a review and scoring process to determine recommended project approvals and funding levels.  Through this process, priority will be given to applications from low-to-moderate income (LMI) areas that were submitted during the initial six-week application period.  If these projects are not fully able to utilize the full $47.5 million, the process also addresses how the remainder of projects will be evaluated and how funding will be allocated.

Following HUD’s approval of New Jersey’s Community Development Block Grant (CDBG) Disaster Recovery Action Plan, in addition to the Stronger NJ NCR program, the EDA administers the $100 million Stronger NJ Business Grant program, which provides grants of up to $50,000 to New Jersey businesses damaged by the storm and the $100 million Stronger NJ Business Loan program, which offers loans of up to $5 million with no interest or principal payments for up to 24 months.

For more information on the Stronger NJ Business programs visit http://application.njeda.com/strongernjbusiness or call EDA’s Sandy hotline at 1-855-SANDY-BZ (1-855-726-3929).