PREMIER LENDER PROGRAM
Checking your eligibility or exploring your financing options? START HERE:
The New Jersey Economic Development Authority (NJEDA) wants to ensure that New Jersey businesses have the resources necessary to expand and that our communities have a healthy climate for growth. That’s why we partner with banks to overcome the financial obstacles that can stall the growth and expansion of New Jersey-based businesses and not-for-profit organizations.
Up to $2 million loan participation or $1.5 million loan guarantee for fixed assets.
Up to $750,000 loan participation or $1.5 million loan guarantee for term working capital.
Up to $750,000 line of credit guarantee.
Fixed assets
Term working capital
Businesses who commit to the retention and/or creation of one new full-time job for every $65,000 of NJEDA exposure within 2 years.
1.1x debt service coverage ratio; 1.0x debt service coverage for non-profits.
Must be able to provide fixed assets (e.g. real property and machinery/equipment).
Homebased businesses are ineligible.
Benefits for Businesses / Not-for-Profit Organizations:
- Access to low-cost financing that includes NJEDA loan participation and/or guarantees, and line of credit guarantees.
- Financing can be used for fixed assets or term working capital.
- Attractive interest rates and terms
Benefits for Participating Lenders:
Provides lenders with more flexibility by reducing the lender’s overall exposure.
Faster turnaround on requests including:
- Access to low-cost financing that includes NJEDA loan participation and/or guarantees, and line of credit guarantees.
- Financing can be used for fixed assets or term working capital.
- Attractive interest rates and terms
The Premier Lender Program Creates a Win-Win Opportunity for Businesses and Participating Lenders
PROGRAM DETAILS
In partnership with NJEDA Premier Lender banks, NJEDA can provide the following loan participations/guarantees and line of credit guarantees:
- Up to 50% of the bank loan amount for fixed asset loans; maximum NJEDA participation of $2,000,000; maximum NJEDA guarantee of $1,500,000; total NJEDA exposure not to exceed $2,750,000.
- Up to 50% of the bank loan amount for working capital loans; maximum NJEDA participation of $750,000; maximum NJEDA guarantee of $1,500,000; total NJEDA exposure not to exceed $2,250,000.
- Guarantee of up to 50% of the bank line of credit amount; not to exceed $750,000.
ELIGIBILITY
Business applicants looking to qualify for a loan from a Premier Lender must*:
- be in operation for at least two full years;
- commit to the retention and/or creation of one new full-time job for every $65,000 of NJEDA exposure within 2 years;
- have a 1.1X Debt Service Coverage Ratio (for businesses; 1.0X Debt Service Coverage Ratio (for nonprofits);
- have a 100% loan-to-value for real estate and 90% for equipment; and
- be able to provide fixed assets (e.g. real property and machinery/equipment).
Homebased businesses are ineligible.
*Other credit criteria may apply
Please be advised: New Jersey State law prohibits most cannabis license and certification holders from receiving or continuing to receive an economic incentive from the NJEDA. If the applicant, or any person who controls the applicant or owns or controls more than one percent of the stock of the applicant, has applied for or received a license or a certification from the New Jersey Cannabis Regulatory Commission (NJ-CRC), the applicant is ineligible for this program and should not proceed with an application. If an application is received from an applicant that meets this criteria, the application will be declined and the application fee will not be refunded.
FEES
Based on the 5-year US Treasury or floor of 1%, whichever is higher, with basis point additions for credit risk.
- Application Fee: $1,000
- Commitment Fee: $750, payable at acceptance of term sheet
- 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
TAX CLEARANCE CERTIFICATE
Division of Taxation Tax Clearance Certificate required. Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) online portal.
- Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance
- If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the Business Incentive Tax Clearance can be printed directly through PBS.
- Additional, instructions detailing how to secure your tax clearance certificate are available for download.
Please be advised: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to NJEDA at time of closing, NJEDA will not proceed with closing.
PREVAILING WAGE
Projects utilizing NJEDA financial assistance for construction related costs are subject to state prevailing wage requirements.
Effective April 1, 2020, all construction contracts in which prevailing wage applies must provide proof of valid NJ Department of Labor Construction Registration Certification. Please email PWCR@dol.nj.gov if you have any questions about this requirement. Please be advised that a valid Contractor Registration Certificate is required to perform construction on this NJEDA financially assisted project.
QUESTIONS
Connect directly with your area’s NJEDA Business Banking Representative
Select Your County Below to Get Started
Additionally, for more information or to ask a specific question, please send an email to BusinessBanking@njeda.gov and a team member will reach out to you.