STEEL MANUFACTURING COMPANY TO EXPAND IN NEW JERSEY WITH LOW-COST FINANCING FROM EDA
TRENTON, N.J.( April 19, 2007) – The New Jersey Economic Development Authority (EDA) has finalized a $10 million New Markets loan to Super Stud Building Products, Inc. to purchase equipment and help offset costs related to relocating the business from Astoria, New York to Edison, New Jersey. The financing is a result of a $125-million allocation to the EDA under the federal New Markets Tax Credits program.
“Building on the vision of Governor Corzine’s Economic Growth Strategy, the low-interest New Markets loans help to reinvigorate communities and encourage urban investments,” said EDA Chief Executive Officer Caren S. Franzini. “The significance of this project is two-fold because it expands upon New Jersey’s long history of maintaining a strong manufacturing industry, and reaffirms the EDA’s commitment to stimulating economic development in distressed areas throughout the state.”
New Market loans must be used for fixed-asset financing such as building construction, renovations, real estate acquisitions, and equipment purchases and may also include a working capital component. Developers, businesses and nonprofit organizations may apply for the financing for commercial, industrial or mixed-use projects.
The EDA funds will be used to help in the expansion of Super Stud Building Products, Inc., a privately-held company manufacturing the industry’s most diverse offering of steel framing components and accessories for use in the construction of commercial, institutional and residential structures. The loan was made for 10 years at a fixed interest rate of 3 percent, with interest-only payments due for the first seven years. As a result, Super Stud estimates that a total of 193 new jobs will be created in New Jersey within two years.
The New Markets Tax Credits program was enacted in December 2002 as part of the Community Renewal Tax Relief Act and is administered by the U.S. Department of Treasury through the Community Development Financial Institutions Fund. It offers a seven-year, 39-percent federal tax credit for investments made through community development entities, which use the capital derived from the tax credits to make loans to or investments in businesses and projects in low-income communities. There are eligible areas in more than 175 New Jersey municipalities located throughout the state’s 21 counties.
Those interested in applying for funds to grow your business should call (609) 777-4898. Applications are also available online at www.njeda.gov.
The EDA is an independent, self-sustaining state financing and development agency that works to promote economic growth, job creation and the revitalization of New Jersey’s communities with financing assistance, technical support and entrepreneurial training, and real estate development activities.
To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.nj.gov/njbusiness .