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–Background–

The State of New Jersey is committed to supporting the growth and success of small businesses. This commitment is evident in the State’s financial support and advocacy services available to the small business community.

—Access to Capital —

The New Jersey Economic Development Authority (EDA) offers a variety of financing and incentive programs to support the growth of small businesses in New Jersey. In 2015, the EDA provided assistance to 55 small businesses through its small business lending programs. This assistance, which totaled more than $32 million, is expected to result in the creation of over 550 new jobs and leverage more than $122 million in public-private investment.

EDA programs available to help your business grow include:

—Bank Partnerships—

Through the Premier Lender Program, EDA partners with banks across New Jersey to provide low- interest financing through loans, loan participations and guarantees, and line-of-credit guarantees to lower the cost of borrowing. Banks that have been approved by the EDA for Premier Lender status benefit from faster turnaround and reduced risk through EDA participation.

—Bond Financing —

The EDA issues conduit tax-exempt private activity bonds, the proceeds of which are used to provide long-term financing for qualified manufacturing firms and 501(c)(3) not-for-profit organizations. Financing can be used for capital improvements and expansion, including real estate acquisitions, new equipment and machinery, and building construction and renovations, as well as working capital for not- for-profit organizations.

— Direct Loans for Small and Mid-Sized Businesses —

EDA can offer low-interest loans that can be used for fixed assets or working capital for businesses that have not yet engaged a bank on potential financing or are working with a bank that is not an EDA Premier Lender. Up to $2 million is available for fixed assets or up to $750,000 for working capital, for up to 10 years with the option of either a fixed or variable below-market interest rate.

—Small Business Fund —

Creditworthy small, minority-owned or women-owned business in New Jersey in operation for at least one full year that may not have the ability to get bank financing, or not-for-profit corporation in operation for at least three full years may be eligible for direct loans of up to $500,000 under the Small Business Fund.

—Access to Technical Assistance —

To help New Jersey’s entrepreneurs and small businesses start, run, and grow, the EDA has formed a strategic partnership with UCEDC, a statewide, not-for-profit economic development corporation dedicated to assisting and financing small businesses and women- and minority-owned enterprises.

— Technology-Focused Programs—

To stimulate growth of New Jersey’s innovation economy and drive commercialization of pioneering technology within the state, the EDA offers a continuum of assistance specifically designed to help technology and biotechnology companies at every stage of growth. From networking and mentoring to financial assistance such as loans and tax credits, hundreds of entrepreneurs, emerging businesses and established companies benefit from EDA support each year.

—Business Advocacy —

The state’s Business Action Center (BAC) can help cut through red tape with professional and coordinated assistance in the resolution of permit applications, licenses, certificates and other business- related approvals. In addition, the BAC team works to encourage entrepreneurship by supporting New Jersey’s businesses, promoting global competitiveness of New Jersey companies, and highlighting the state’s attractiveness as a vacation destination and business investment location nationally and internationally.

—For More Information—

To learn more about the eligibility requirements for each program please visit http://www.njeda.com/small_midsize_business. For information on programs to support technology and life sciences companies, please visit http://www.njeda.com/technology_lifesciences.

To contact us please call 866-534-7789 or submit an online contact form at

http://www.njeda.com/Information-Form

If you need additional information, please contact Andrew Musick at 609-393-7707, ext. 9512, or via e- mail at amusick@njbia.org.

September 22, 2016

This information should not be construed as constituting specific legal advice. It is intended to provide general information about this subject and general compliance strategies. For specific legal advice, NJBIA strongly recommends members consult with their attorney.