PREMIER CDFI PROGRAM

The NJEDA is no longer accepting applications for this program.

FOR QUALIFIED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS (CDFIs) ONLY

Through the Premier CDFI Program, NJEDA can provide small businesses with loan participations, loan guarantees, and line of credit guarantees in partnership with designated Premier Community Development Financial Institutions (CDFIs).

DOLLAR AMOUNT

Up to $500,000 loan participation, loan guarantee, or line of credit guarantee, NJEDA exposure not to exceed 50% of the loan or line of credit amount.

BENEFITS

Lower cost financing for small businesses
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For participating CDFIs, more flexibility and reduced risk by leveraging NJEDA resources.

ELIGIBILITY

NJ Businesses who commit to create or retain one new full-time job for every $65,000 in EDA exposure within two years.
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Businesses must be in operation for one full-year, or three full years for non-profits.
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Applicants must meet guarantor credit score and LTV requirements.

The NJEDA is partnering with CDFIs to ensure that NJ businesses have the resources necessary to expand and that our communities have a healthy climate for growth.

PROGRAM DETAILS
ELIGIBILITY
INTEREST RATES & FEES

PROGRAM DETAILS

In partnership with Premier CDFIs, NJEDA can provide qualified small businesses or not-for-profits financing in the form of a participation, guarantee or direct loan of up to $500,000 of NJEDA exposure, not to exceed 50% of the loan amount. Financing can be used by businesses for fixed assets or term working capital.

ELIGIBILTY

Businesses looking to qualify for a loan from a Premier CDFI must*

Be in operation for at least one full year, or three years for non-profits
Commit to creation or retention of one new, full-time job for every $65,000 of NJEDA exposure within two years.
Businesses/Not-for-Profits must meet minimum Guarantor Credit Score and LTV Requirements, based on the type of applicant and financing detailed below:
Loans: Minimum of one personal guarantor with a credit score greater than or equal to 680, must have minimum historical debt service of at least 1:1.
Guarantees: Minimum of one personal guarantor with a credit score greater than or equal to 680, guarantee not to exceed 50% of the CDFI loan amount, length of guarantee not to exceed five years.
Not-for-Profits: Debit service coverage of at least 1:1.

FEES

Based on the 5-year US Treasury or floor of 2%, whichever is higher, with basis point additions for credit risk.
Application Fee: $300
Commitment Fee: 0.5% of the loan amount
Closing Fee: 0.5% of the loan amount
Guarantee Fee: Up to 0.5% sized to percentage guarantee required, not to exceed 0.5% (for example, 25% guarantee will require a 0.25% fee, 50% guarantee will require a 0.5% fee).

* All fees are non-refundable.

CDFIs with a successful history of lending and portfolio management may be considered for approval as a Premier CDFI. As a Premier CDFI, a financial institution can receive expedited approvals for participations, direct loans, and/or guarantees.

The NJEDA will request the following information from CDFIs seeking a Premier CDFI designation:

Bylaws and Articles of Incorporation
List of the Board of Directors and their professional affiliations
Organizational chart with description of staff positions
Listing of key personnel with resumes
Most recent 3 years financial statements (audited, if available)
Interim P&L and balance sheet
List of operating revenue sources (including restrictions on amounts, conditions, etc)
List of local and private sector support (if applicable)
Ongoing funding commitments (if applicable)
Lending and risk management policies (including underwriting criteria and loan monitoring procedures)
Product description(s) (including rates, terms and allowable uses of loan proceeds) for program(s) that will be utilized for PCP request
Three examples of credit underwriting for transactions similar in size and scope to those anticipated to be funded through PCP
Cash/investment management policy
Sample loan documents (including application, loan agreement, and promissory note)
Current portfolio status report and risk analysis (including aging or portfolio)
Tax Clearance Certificate

NJEDA Legal Questionnaire

QUESTIONS

For more information or to ask a specific question please send an email to smallbusinessservices@njeda.com and a team member will reach out to you.