STATE PROGRAM CONNECTS SMALL BUSINESSES AND BANKS FOR LOANS
By Joe Cutter
June 27, 2011
A loan program underwritten by the New Jersey Economic Development Authority seeks to loosen the lending purse strings for small businesses.
The program is called the, “Main Street Business Assistance Program”. The aim is to provide small businesses in New Jersey with a wider number of lending options and increased access to capital while also reducing the credit risk for the lending banks.
New Jersey Economic Development Authority spokesman Tim Lazura says they track all of their successes for the program by jobs created, jobs retained and investment made.
In 2010, NJEDA provided financial support to over 80 small businesses throughout the state., supported over 2,200 existing jobs and generated more than 600 new ones.
The Main Street program will guarantee up to 50 percent of a bank loan for the small business, and can also direct loans up to 25 percent of the total financing.
Benefits of the NJEDA program include:
- Innovative loan and incentive programs to help small businesses in New Jersey gain access to financing to survive and grow
- Increased lending options and access to capital
- Loan guarantees up to 50% of a bank loan
- Direct loans/loan participations up to 25% of the total financing
- Line of credit guarantees up to 50% of the line of credit amount for preferred lenders
- and banks reduce their exposure and risk
NJEDA is continuing to grow its network of community and commercial banks, to help small businesses with their financial needs.
Small business owners can call The Business Action Center at 866 534 7789, or go online at www.newjerseybusiness.com for more information.