ROSELLE RESTAURANT TO EXPAND WITH HELP FROM MAIN STREET BUSINESS ASSISTANCE PROGRAM
Trenton, NJ (August 17, 2009) –The New Jersey Economic Development Authority (EDA) has finalized a $150,000 loan participation with the owners of a Roselle Borough restaurant under a new program established by Governor Jon S. Corzine and the state Legislature to help New Jersey businesses cope with the effects of a national economic downturn.
The EDA participation in the $450,000 TD Bank loan will enable owners George Andrianos, Louis Andrianos and Angelo Vayas to finance construction costs associated with renovations to the Cavalier Restaurant-Banquet on Wood Avenue. The funding was made under the Main Street Business Assistance Program, which enables qualified small and mid-size businesses and nonprofit organizations in New Jersey to access capital by providing state support for bank lending through loan participations and credit enhancements.
“Restaurant’s like Cavalier are a quintessential part of New Jersey and I am pleased that the Main Street initiative was able to provide the funding to ensure Cavalier remains and flourishes in Roselle,” said Governor Corzine. “This program is one of several critical initiatives established under the Economic Assistance and Recovery Plan to aid businesses during the national recession and Cavalier’s continued growth is great news for New Jersey.”
Originally established in 1986 as a diner, the Cavalier Regency and Cavalier Social Banquet rooms were recently added to the facility to host wedding receptions and other social events. Cavalier expects to maintain its current staff of 28 and add six new positions as it continues to expand in Roselle. The renovation project also is expected to create 11 construction jobs. In addition to assistance from the EDA and TD Bank, UCEDC also supported this project.
“New Jersey has been a great place to grow Cavalier and we are very excited to be able to expand our services by opening up a new banquet facility to host wedding receptions and other social events,” said Louis Andrianos, co-owner of Cavalier. “We are thankful to receive support from the state and TD Bank under the Main Street program and look forward to continued success in New Jersey.”
Developed in partnership with the New Jersey departments of Banking and Insurance and Treasury and the state’s banking community, the Main Street program has been funded by a $50-million state appropriation. The program has 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 through the EDA’s 14 Preferred Lender partners. To qualify, borrowers must be in business at least two years, maintain jobs in New Jersey and meet other EDA eligibility requirements.
“Small businesses are such an important part of the local community and our nation’s economy, and TD Bank is proud to participate in the innovative Main Street program that benefits everyone involved,” said Nicholas Miceli, market president, TD Bank. “We remain a financially stable and committed partner that is actively lending to businesses of all sizes.”
For term loans secured by fixed assets like buildings and equipment, the EDA will provide a maximum participation of 25 percent, or $1 million, in a bank loan and a maximum bank loan guarantee of 50 percent, up to $2 million. For working capital loans to cover operating expenses, the EDA will provide up to 25 percent of a bank loan, not to exceed $750,000, and a maximum guarantee of 50 percent, up to $1.5 million. The aggregate EDA exposure cannot exceed 50 percent of the total bank loan amount to a total maximum of $2 million. The interest rate on EDA loan participations is fixed at 5 percent for a maximum of five years. Borrowers also can use the Main Street program to refinance higher-interest debt.
The line of credit guarantee, which can be used for fixed assets or working capital, is set at a maximum of 50 percent of the bank amount, up to a maximum of $250,000.
Applications and program details for the Main Street program is available online at www.njeda.gov. For more information on the Main Street Business Assistance Program, you also may call 1-(800) 537-7397 or e-mail MainSt@njeda.com.
About TD Banknorth and TD Bank
Following TD Bank Financial Group’s acquisition of Commerce Bancorp Inc. on March 31, 2008, TD Banknorth and Commerce Bank merged on May 31, 2008, to become TD Bank, America’s Most Convenient Bank. Today, TD Banknorth and TD Bank form one of the 15 largest commercial banks in the United States with $126 billion in assets, and provide customers with a full range of financial products and services at more than 1,000 convenient locations from Maine to Florida. TD Bank, N.A., is headquartered in Cherry Hill, N.J., and Portland, Maine. TD Banknorth and TD Bank are trade names of TD Bank, N.A. For more information, visit www.TDBanknorth.com and www.TDBank.com.
TD Banknorth and TD Bank, America’s Most Convenient Bank, are members of TD Bank Financial Group of Toronto, Canada, a top 10 financial services company in North America and one of just three triple-AAA-rated banks on the New York Stock Exchange.