TRENTON, N.J. (January 24, 2020) – When New Jersey’s Angel Investor Tax Credit Program expansion took effect on January 1, it, among other things, doubled the amount of tax credits angel investors can receive on qualified investments into early-stage New Jersey technology and life sciences companies. The expansion has been hailed by the investor community as a necessary and important step in increasing the amount of capital injected into eligible businesses, an integral part of Governor Phil Murphy’s vision to reclaim New Jersey’s role as a leader in innovation.
 
The Angel Investor Tax Credit Program offers a 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 that conducts research, manufacturing, or technology commercialization in the state. Businesses must have fewer than 225 employees, and at least three quarters of those employees must work in New Jersey. The program is administered by the New Jersey Economic Development Authority (NJEDA) in partnership with the Department of the Treasury’s Division of Taxation. 
 
In addition to increasing the tax credit from 10 percent to 20 percent of a qualified investment, the program now offers an additional five percent bonus available for investments in a business located in a qualified opportunity zone, low-income community, or a business that is certified by the State as minority- or women-owned. 
 
“With the expansion of our Angel Investor Tax Credit Program, we’re building upon the robust suite of tools that entrepreneurs can leverage to grow their companies, create new jobs, and bring their products to market,” said NJEDA Chief Executive Officer Tim Sullivan.  
 
Jumpstart NJ Angel Network Chairman Stephen Dyer has been a vocal advocate of the expansion of the Angel Investor Tax Credit Program. JumpStart, one of the largest angel-investing networks in the Mid-Atlantic region, began in 2003 as a collaborative effort between the NJEDA and the New Jersey Technology Council (NJTC).
 
NJEDA spoke to Dyer about how he sees the expansion of the Angel Investor Tax Credit Program impacting New Jersey’s innovation ecosystem:
 
How do you see the expansion of the Angel Investor Tax Credit Program benefitting New Jersey’s investors in the future?  Similarly, how do you see it impacting the startup community moving forward?

Raising angel capital will always be a challenge as the demand for capital far exceeds the supply available from angel investors. An informed angel investor will certainly factor the benefits from the NJ Tax Credit Program into their decision on where they are going to commit their capital. I believe that the expansion of the program will lead to an in increase the amount of dollars individuals are willing to invest in the New Jersey startup community. This is a win-win situation for both the investor and the early-stage companies, as well as the State’s innovation community as a whole.
 
What advice do you have on how early-stage companies can use the expansion of this program as they pitch to investors?

The Angel Investor Tax Credit Program is a tremendous tool for entrepreneurs to leverage. The NJEDA has many programs and resources that are well detailed on its website and understanding what is available is important as you make decisions. My word of advice is to make sure you understand the details of the program to ensure that the capital you are raising from angels qualifies for the program. For example, if the capital the early-stage company is pitching is structured as convertible debt (instead of equity), it precludes investors’ capital from initially qualifying for the Tax Credit Program.

What do you recommend to a person looking to begin investing as an angel ?
I have two recommendations.  First, join an angel group!  This will open you up to deal flow, assist in analyzing the potential investment opportunity you find of interest, support diligence, as well as economies and diversification created with additional capital from other angel group members.  Second, with respect to specific investment opportunities, the talent of the entrepreneur and their team can often be more important than the market problem the business is attempting to solve.
 
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.

TRENTON, N.J. (January 21, 2020) – The New Jersey Economic Development Authority (NJEDA) Board last week approved the creation of the i6 Challenge Support Program, a pilot grant program that will provide $100,000 of matching funding to a maximum of three New Jersey-based projects applying for funding through the federal i6 Challenge each year. Applications will be due in February 2020. More information, including eligibility requirements and application materials, will be available on the NJEDA website soon.

“Fostering the most diverse and inclusive innovation economy in the nation is critical to achieving Governor Murphy’s vision of a stronger, fairer New Jersey,” said NJEDA Chief Executive Officer Tim Sullivan. “The NJEDA’s new i6 Challenge Support Program moves us closer to that goal by supporting New Jersey entrepreneurs and startups and strengthening our innovation clusters to build a stronger more robust state innovation ecosystem.”

The i6 Challenge is a US Economic Development Administration (US EDA) program designed to spur innovation capacity-building across the US. The i6 funds proof-of-concept and commercialization programs which result in business creation, accelerated paths to export, increased foreign direct investment, and new jobs. This includes technology advisement, market evaluation, business planning, mentorship, and improved access to early-stage capital. Programs can be physical or virtual, and both new and existing programs can qualify for funding.

The US EDA i6 Challenge has a strict 1:1 funding match requirement, which means the amount of funding applicants receive through the program is limited to the amount of non-federal funding they can raise. The NJEDA program will help applicants be more competitive and, where applicants are successful, increase the Federal funding they are eligible to receive. More broadly, the i6 Challenge Support Program aims to grow New Jersey’s innovation economy by fostering collaboration between entities within innovation clusters.

The program will operate on a pilot basis for one year and will be capitalized through the Economic Recovery Fund (ERF). The NJEDA will cap grants at $100,000 per applicant, and maximum of three awards, with any awards contingent on the applicant receiving a federal i6 award.

The 2020 application for the NJEDA i6 Challenge Support Program is expected to be available in January with applications due in February. The NJEDA anticipates notifying winners in March.
 
 
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.
 

The New Jersey Economic Development Authority's next public Board Meeting will be held on Thursday, January 16, 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.

During the weekend of January 18-19, EDA will be performing scheduled maintenance on the web servers that host www.njeda.gov, iDMS, affirmative action and the online application web sites. Because users may experience loss of data when submitting forms, EDA is disabling the iDMS, affirmative action and online application sites completely during this time. These areas should be working normally following the maintenance period. We apologize for any inconvenience this may cause.

 Computer software manufacturer Sembient recently joined the growing list of startups approved to receive rent through NJ Ignite.

TRENTON, N.J. (January 7, 2020) – Computer software manufacturer Sembient recently joined the growing list of startups approved to receive rent support through the New Jersey Economic Development Authority’s (NJEDA’s) NJ Ignite program. The startup moved to Building 78 at Kearny Point late last year.

NJ Ignite helps technology and life sciences startups realize the benefits of collaborative workspaces by providing up to nine months of rent support for startup technology and life sciences businesses that are moving to an approved collaborative workspace.

Sembient develops computer software that provides spatial analytics and real-time occupancy data to help businesses understand how their spaces are being used. This information feeds companies’ decisions on how to best design and operate indoor environments that are productive and comfortable for employees and visitors.

“Our Software-as-a-Service product enables our clients to create intelligent workspaces that improve the employee experience and reduce real estate and energy costs,” said Sembient Chief Executive Officer and Co-founder Aleksandar Jovicic. “We look forward to expanding our company with the support of the collaborative work environment at Kearny Point and the NJ Ignite program."

NJ Ignite is made possible through a combination of support from the NJEDA and the collaborative workspace, with the NJEDA covering up to six months’ rent and the collaborative workspace covering rent for half the length of NJEDA’s commitment. As a supplement to a financial commitment, participating incubators, accelerators, and coworking spaces are required to offer tenants a minimum of eight innovation-ecosystem-building events per year, such as Meetups, guest speakers, and office hours with professionals such as lawyers, accountants, and consultants. Sembient will have the opportunity to partake in these benefits.

“NJ Ignite offers startups and entrepreneurs the necessary real estate to expand their businesses,” NJEDA Chief Executive Officer Tim Sullivan. “Coworking spaces provide the perfect setting for startups to learn from one another and for entrepreneurs to collaborate with fellow innovators. This dynamic is an essential element toward realizing Governor Phil Murphy’s vision for making New Jersey the State of Innovation.”

Considered one of the most significant adaptive reuse initiatives in the region, Kearny Point is an up-and-coming modern workplace that is home to a diverse community of pioneering businesses. Building 78, the first building to be redeveloped under its multiphase plan, features creative flex office spaces and a co-working facility known as Kearny Works. Later this month Kearny Point will open The Annex, which features two floors of state-of-the-art creative office space, modern amenities and break-out areas in a historic, naturally lit crane-way.

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.
 

TRENTON, N.J. (2 de enero de 2020) — La New Jersey Economic Development Authority (NJEDA) ha anunciado hoy que ha empezado a aceptar solicitudes para el Micro Business Loan Program El programa piloto ha sido diseñado para proporcionar una financiación de hasta 50 000 dólares a empresas emergentes y microempresas con fines de lucro de Nueva Jersey. Estas empresas pueden utilizar la financiación como capital de trabajo o para comprar material. 

Para asegurar que la financiación es accesible a las empresas emergentes y microempresas que más lo necesiten, una empresa debe tener ingresos anuales de menos de 1 500 000 de dólares en el año fiscal actual y no puede tener más de 10 empleados a tiempo completo en el momento de la solicitud. Las empresas emergentes pueden ser consideradas para recibir esta financiación, pero primero deben demostrar que han completado un programa de formación empresarial o sesiones de asesoramiento del Small Business Development Center.

«El nuevo Micro Business Loan Program ayudará a llenar un vacío en el conjunto de recursos de la NJEDA al permitirnos ofrecer una financiación de bajo costo a empresas muy pequeñas, a menudo empresas emergentes», declaró Tim Sullivan el director ejecutivo de la NJEDA. «Pensamos que es fundamental mejorar el acceso al capital y apoyar a las microempresas a medida que crecen, crear empleos e invertir en nuestras comunidades para construir una economía más fuerte y justa en Nueva Jersey».

El Micro Business Loan Program funcionará como un programa piloto durante un periodo de hasta tres años a partir de la fecha en que las solicitudes se pongan a disposición del público o hasta que el suministro total de fondos de 1 000 000 de dólares esté completamente agotado.

En noviembre de 2019, el gobernador Phil Murphy firmó el Decreto Ejecutivo número 91, en el que se establece una Public Bank Implementation Board, que se encargará de planificar el desarrollo de un banco público para Nueva Jersey. Gracias a la visión del gobernador Murphy de un banco público, los fondos públicos podrían destinarse a reducir las necesidades insatisfechas de capital comunitario. El Micro Business Loan Program servirá como proyecto de demostración inicial de cómo un banco público puede servir para ofrecer financiación a bajo costo y con condiciones flexibles a empresas emergentes que pueden tener dificultades para acceder a la financiación bancaria convencional.

Acerca de la New Jersey Economic Development Authority
La New Jersey Economic Development Authority (NJEDA) constituye el organismo principal del estado para impulsar el crecimiento económico. La NJEDA se compromete a hacer de Nueva Jersey un modelo nacional para el desarrollo económico inclusivo y sostenible al centrarse en estrategias clave que ayudan a construir comunidades fuertes y dinámicas, crean buenos puestos de trabajo para los residentes de Nueva Jersey y proporcionan vías para una economía más fuerte y más justa. Mediante la asociación con una variedad diversa de partes interesadas, la NJEDA crea y aplica iniciativas para mejorar la vitalidad económica y la calidad de vida en el estado, a la vez que fortalece la competitividad económica a largo plazo en Nueva Jersey.

Para obtener más información sobre los recursos de la NJEDA, llame al servicio de atención al cliente de la NJEDA al 609-858-6767 o visite https://www.njeda.gov y siga @NewJerseyEDA en Facebook, Twitter y LinkedIn.

TRENTON, N.J. (December 18, 2019) – The New Jersey Economic Development Authority (NJEDA) today announced that it is now accepting applications for its Micro Business Loan Program. Designed to provide financing to early-stage and micro businesses in New Jersey, the pilot program makes financing of up to $50,000 available to for-profit New Jersey businesses, who can use the financing for working capital or to purchase equipment. 

To ensure that the financing is accessible to the early-stage and micro businesses that need it most, to qualify, a business must have annual revenues of less than $1,500,000 in the most current fiscal year, and cannot have more than 10 full-time employees at time of application. Startup businesses may be eligible for financing, but must first demonstrate that they have completed an entrepreneurship training program or Small Business Development Center counseling sessions.

“The new Micro Business Loan Program will help to fill a gap in the NJEDA’s suite of resources by enabling us to offer low-cost financing to very small, often early-stage companies,” said NJEDA CEO Tim Sullivan. "Improving access to capital and supporting micro businesses as they grow, create jobs, and invest in our communities is critical to building a stronger, fairer New Jersey economy.”

The Micro Business Loan Program will operate as a pilot program for a period of up to three years from the date applications were made available to the public, or until the $1,000,000 total funding pool is fully exhausted.

Last month, Murphy signed Executive Order #91, establishing a Public Bank Implementation Board, which will be tasked with planning the development of a public bank for the Garden State. Under Governor Murphy’s vision for a public bank, public funds could be directed toward reducing unmet community capital needs. The Micro Business Loan Program will serve as the initial demonstration project for how a public bank could serve to make financing available, at a low-cost and with flexible terms, to early-stage businesses that may have difficulty accessing conventional bank financing.

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, 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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A meeting of the Capital City Redevelopment Corporation (CCRC) Board has been scheduled for Tuesday, December 17, 2019 at 10:00 am in the EDA Board Room, 36 West State Street, Trenton, NJ.

 

A copy of the proposed agenda can be found at http://web.njeda.com/ccrc/page.aspx?id=2461

A meeting of the Commission of Science, Innovation and Technology (CSIT) Board has been scheduled for Friday, December 13, 2019 at 10:00 am at Rutgers University, Winants Hall, 7 College Avenue, New Brunswick, NJ.

 

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

The New Jersey Economic Development Authority's next public Board Meeting will be held on Tuesday, December 10, 2019 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.