July 17, 2008
2 minute read
EDA ADDS ROMA BANK TO ITS LIST OF PREFERRED LENDERS
Trenton, N.J. (July 17, 2008) – The New Jersey Economic Development Authority (EDA) has approved Roma Bank as its newest Preferred Lender. The program, which supports Gov. Jon S. Corzine’s commitment to enhance New Jersey’s economy, streamlines the EDA’s loan-approval process and speeds the flow of capital to growing businesses in the state.
Roma Bank, founded in 1920, is headquartered in Robbinsville and has 13 locations in Mercer, Burlington, and Ocean counties with more than $922 million in total assets.
“Our Preferred Lender Program offers an attractive choice for EDA banking partners and their borrowers that seek affordable capital for fixed assets like buildings and equipment, working capital for operating expenses and refinancing higher-cost debt,” said EDA Chief Executive Officer Caren S. Franzini. “We are excited to add Roma Bank to our list of Preferred Lenders, and eager to work with this community bank to better serve the financial needs of businesses in Mercer, Burlington, and Ocean counties.”
The program features a three-day turnaround time for loan approval and applies to transactions in which the EDA buys a participation in bank financing and/or guarantees a portion of a bank loan. It is designed to create new opportunities for EDA’s lending partners because it makes funds available at below-market interest rates with flexible terms for growing New Jersey businesses. Quick turnaround time from approval to closing provides a strong incentive for borrowers, while the EDA’s exposure by participating in or guaranteeing a portion of a loan reduces the lender’s risk.
“We are pleased to become part of the EDA’s Preferred Lender Program,” said former Senator Peter Inverso, Roma Bank president and CEO. “This further enables Roma to address the credit needs of small business in our communities.
“This lending program is an important element in promoting business growth and statewide economic prosperity,” he continued. “We look forward to working closely with the EDA in the years ahead in support of the many value-added financial programs available for New Jersey-based companies.”
Under the Preferred Lender Program, the EDA provides up to 50 percent of the bank loan amount for fixed asset loans, with a maximum participation of $1.25 million and a maximum guarantee of $1.5 million. For working capital loans, the EDA offers up to 50 percent of the bank loan amount, with a maximum participation of $750,000 and maximum guarantee of $1.5 million. EDA participation and guarantee terms may be up to 10 years for fixed asset loans and up to five years for working capital loans.
Borrowers of low-interest EDA funding under the Preferred Lender Program have the option of choosing a fixed rate indexed to the five-year Treasury rate or a variable rate indexed to the Prime Rate. Businesses must be New Jersey-based, in operation for at least two years, and commit to creating at least one new job per $50,000 in EDA exposure. Manufacturers need only to maintain one job per $50,000 of EDA exposure.
The EDA is an independent, self-sustaining state financing and development agency that works to promote economic growth, job creation and the revitalization of New Jersey’s communities with financing assistance, technical support and real estate development activities.
To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov.