EDA officials said the $2 million pilot program is intended to provide grants to Community Development Financial Institutions, Minority Depository Institutions and other organizations that lend to small and microbusinesses to support the costs associated with scaling up their operations and offering direct assistance to more New Jersey-based businesses.
EDA CEO Tim Sullivan said the group is glad to be able to help those helping small businesses.
“Throughout the pandemic, lenders that specifically support microbusinesses have been crucial to helping the most at-risk small businesses keep the lights on, but the ongoing challenges of the pandemic have strained these organizations,” he said. “The Micro Lender Support Grant Program awards announced today will provide much-needed resources to help CDFIs and other lenders continue supporting micro- and small businesses that need help, while increasing their capacity to serve even more businesses in need.”
The following organizations have been selected to receive grants through the Micro Lender Support Grant Program:
- Union County Economic Development Corp.
- Cooperative Business Assistance Corp.
- Elizabeth Development Co. of N.J.
- Grameen America Inc.
- N.J. Community Capital
- Reinvestment Fund
- 1st Bergen Federal Credit Union
- Greater Newark Enterprises Corp.
- Lakewood Development Corp.
These grants are intended to be used to support operating expenses associated with servicing micro- and small businesses, such as hiring additional staff or opening new offices, and the buying down of interest rates of loans offered to small and microbusinesses.