New Jersey Small Businesses Benefit from Customized Financing Solutions Offered by EDA
State Resources Support Small Business Expansion
TRENTON, N.J. (January 11, 2017) – The growth of many small- and mid-sized businesses throughout New Jersey was supported in 2016 by tailored financing solutions created from a toolkit of programs administered by the New Jersey Economic Development Authority (EDA).
“Each of the businesses that make up New Jersey’s diverse small business community have unique financing needs, and in some instances, a business is best served through a combination of EDA programs,” EDA Chief Executive Officer Melissa Orsen said. “We encourage businesses of all sizes to explore the creative and versatile solutions the EDA offers.”
Through its traditional financing programs, which include direct loans, bank participations and guarantees, and tax-exempt bonds, the EDA supported the growth and sustainability of a wide range of small- and mid-sized businesses and not-for-profit organizations across New Jersey in 2016 with more than $538 million in financing, leveraging more than $920 million in public/private assistance. These 157 projects are associated with the expected creation of approximately 1,270 new jobs and an estimated 4,700 construction jobs.
In some cases, EDA small business programs serve as a complement to tax credits offered under the Grow New Jersey (Grow NJ) program, which is administered by the EDA under the Economic Opportunity Act. Through Grow NJ, the State’s primary job creation and retention program, companies with as few as 25 employees may be eligible for “per job” tax credits associated with relocating to New Jersey or creating and retaining jobs at risk of moving elsewhere.
In Middlesex County, New York Popular, Inc. is utilizing a $1.1 million EDA direct loan to acquire and expand a 54,560-square-foot facility consisting of three buildings in Carteret. The company, an apparel wholesaler, was also approved for a $5.3 million tax-exempt bond, and Grow NJ tax credits of $9.7 million over 10 years to encourage the company to relocate all of its operations from Brooklyn, New York, creating 150 new jobs.
Through the EDA’s Premier Lender Program, the EDA partners with more than two dozen banks. Businesses benefit from low-cost financing with quick turnaround time from approval to closing, while the EDA’s exposure by participating in or guaranteeing a portion of a loan reduces the lender’s risk. Businesses can use this financing for fixed assets, working capital, and/or the refinancing of other bank debt.
In Ocean County, Rubbercycle, LLC, a manufacturer of top quality rubber and surfacing for military, commercial and residential use, closed on a $13.5 million loan with Premier Lender TD Bank that included a $2 million EDA participation to acquire a property in Lakewood to house its operations. The company was also previously approved for Grow NJ tax credits of up to $2.4 million over 10 years to encourage it to remain and grow in New Jersey, where it will retain 25 jobs and create 15 new positions, rather than relocate its operations to New York.
Also approved for a TD Bank loan under EDA’s Premier Lender program was Liscio’s Bakery in Glassboro, Gloucester County. In 2016, Liscio’s closed on a $5 million loan with a $1 million EDA participation to help the bakery purchase equipment. Liscio’s, which provides baked goods for wholesale customers in the Mid-Atlantic region, was approved previously for Grow NJ tax credits of up to $13.5 million over 10 years to encourage the company to remain and expand in Glassboro, where it will create 71 new jobs and retain 176 jobs that were at risk of leaving for Pennsylvania.
“The support offered by the EDA has enabled Liscio’s to remain and grow in New Jersey,” said Liscio’s co-owner Chad Vilotti. “As a small and growing business, EDA programs have helped us overcome challenges and ultimately create jobs.”
To learn about EDA resources for small businesses and not-for-profits, visit www.njeda.gov/small_midsize_business and follow @NJEDAWasHere on Twitter and LinkedIn.
The EDA is part of the state’s results-driven Partnership for Action. 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.
All Board actions will take effect at the expiration of the statutory period for the Governor’s review and consideration of the meeting minutes.
To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov or call the Business Action Center at (866) 534-7789.