GOVERNOR CORZINE TOUTS SMALL BUSINESS GROWTH AND EXPANSION
Trenton, N.J. (August 27, 2009) – While touring two southern New Jersey small businesses, Governor Jon S. Corzine today applauded their efforts to expand operations and grow jobs in the Garden State. Severino Pasta Manufacturing Company in Westmont and Moorestown-based EMS Formation, both of which recently expanded, received assistance from the State through innovative programs that allow businesses to access capital by providing state support for bank lending through loan participations and guarantees.
“By partnering with banks, particularly during these challenging economic times, New Jersey is able to help businesses overcome the financial obstacles that can stall their growth and expansion,” said Governor Corzine. “Small businesses are the backbone of our State’s economy and I am pleased that we were able to ensure the continued success and growth of two long-standing businesses and create jobs.”
The Governor said that companies like Severino Pasta and EMS Formation are contributing to the positive gains in private sector job growth being experienced in the Garden State. Earlier this week, the N.J. Department of Labor reported the addition of 13,000 private sector jobs to the New Jersey economy.
Severino Pasta Manufacturing Company has had its family-run retail and manufacturing shop in Westmont for over 35 years. Founded by Joseph and Anna Maria Severino, the company is run today by the second generation of the Severino Family. The company manufactures handmade, authentic artisan’s pasta and recently expanded its warehousing distribution operations at its second facility in Cherry Hill. In addition to its retail shop, Severino also supplies its products to restaurants, supermarkets, hotels, and wholesalers in the New Jersey and Philadelphia areas. Severino received a $200,000 PNC Bank loan, with a 25-percent EDA guarantee under the New Jersey Business Growth Fund, a below-market interest rate loan program jointly run by the New Jersey Economic Development Authority (EDA) and PNC Bank. Severino expects to maintain its current staff of 36 and recently hired two new employees.
“We really are a family-minded company that depends on and supports our local community, for everything from supplies to employees,” said Louis Severino, co-owner of Severino. “We’re thankful to the state for helping us acquire our loan from PNC Bank, which will support our continued growth in New Jersey.”
EMS Formation designs and manufactures hardware and software products for the defense, aviation, data communications and transportation industries, with a leading position supplying wireless hardware that enables in-flight connectivity. Formation, Inc. was founded in Moorestown in 1970 and joined EMS Technologies, Inc. in 2009. Customers include Rockwell Collins, Airbus, Aircell, Panasonic, and L-3 Communications as its customers. The company has grown from a staff of 68 to 132 over the last 17 months and its year-over-year revenue growth has increased 97-percent. EMS Formation received a $750,000 Sovereign Bank loan, with a $375,000 EDA participation to purchase equipment under the Statewide Loan Pool for Business, a program that brings together the resources of the EDA with scores of New Jersey financial institutions to make it easier for banks to lend money that supports business growth.
“We greatly appreciate the assistance we received from the state, which has helped facilitate our dramatic growth,” said R. Nim Evatt, vice president and general manager of EMS Formation. “Without the EDA and Sovereign Bank partnership, we would have had to pay double to finance this equipment at a pivotal time in our company’s growth strategy.”
Building on the past success of the state’s partnership with the banking community, Governor Corzine created the Main Street Business Assistance Program as part of his Economic Assistance and Recovery Plan. The new program aims to help New Jersey businesses cope with the effects of the national economic downturn and offers two components – a loan participation and/or guarantee product that is being offered through participating banks and a line of credit guarantee offered for the first time by the EDA. To qualify, borrowers must be in business at least two years, maintain jobs in New Jersey and meet other EDA eligibility requirements.
Applications and program details for the Main Street program are available online at www.njeda.gov or by calling 1-(800) 537-7397 or e-mailing MainSt@njeda.com.
To learn more about three companies that were able to expand with help from the NJEDA and meet some of their new employees, watch the video at http://www.youtube.com/user/jonscorzine