NJEDA Program Helps to Draw Investment Interest into Innovative NJ Startups
NJ Entrepreneur Support Program provides guarantees to support investments into Garden State companies
TRENTON, N.J. (February 5, 2024) – The New Jersey Economic Development Authority (NJEDA) continues to accept applications for the New Jersey Entrepreneur Support Program, which was launched in 2020 to help Garden State entrepreneurs navigate COVID-19 related cashflow constraints, then relaunched in March of 2023 in light of challenges in the economy and venture banking system. The $5 million program encourages investors to provide additional funding to businesses by providing an NJEDA guarantee on loans advanced for working capital purposes.
According to estimates from PitchBook, venture capital and angel investment activity has declined since 2021, with a 40 percent reduction in the amount of companies receiving investment and a 50 percent decrease in investment funding. To respond to declining investment activity and unsteady market conditions, especially in the life sciences sector, the NJEDA aims to boost investor confidence in New Jersey companies and increase access to capital for founders through the Entrepreneur Support Program.
“Increased investment into New Jersey companies is essential to supporting Governor Phil Murphy’s vision of bolstering the Garden State’s longstanding leadership in innovation,” said NJEDA Chief Executive Officer Tim Sullivan. “Especially in industries like biotechnology, the New Jersey Entrepreneur Support Program provides a unique solution to assist New Jersey companies in their financing endeavors when opportunities for private investment are not available.”
The NJ Entrepreneur Support Program provides investors with a one-year guarantee of up to 80 percent on a convertible note or bridge loan to a qualifying company. Multiple notes or loans to a qualified company can receive guarantees up to a maximum of $400,000 per company. To qualify for the program, a company must have an office located in New Jersey with a minimum of 50 percent of employees located in the state, have fewer than 225 employees, and be a part of at least one NJEDA targeted industry. For a full list of targeted industries, click here. Qualified investors under the program must be independent from the company, and the proposed investment must not mature for at least one year, cannot require payment for at least a year, and must be unsecured.
For a full list of eligibility requirements and further information on the program, visit https://www.njeda.gov/njesp/.
About the NJEDA
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.
February 29, 2024
NOTICE OF NJEDA BOARD MEETING - 03/07/2024
The New Jersey Economic Development Authority's next public Board Meeting will be held in person and via teleconference on Thursday, March 7, 2024, at 10:00 am.
February 20, 2024
NJEDA to Create Grant Program to Help Small Business Owners Purchase Commercial Properties
TRENTON, N.J. (February 20, 2024) – The Board of the New Jersey Economic Development Authority (NJEDA) has approved the creation of a pilot program that will help boost small business owners’ liquidity following the purchase of a commercial property.
February 15, 2024
NJEDA to Hold Monthly Office Hours Highlighting Innovation Programs
TRENTON, N.J. (February 15, 2024) – To respond to challenges faced by New Jersey technology and biotechnology companies in raising capital, the New Jersey Economic Development Authority (NJEDA) is launching monthly Innovation Programs Office Hours to highlight programs offered by the Authority to stimulate the innovation economy.