Murphy on state’s quick actions for tech companies: ‘Proud that we can lead the pack in doing this’

Governor says it is essential state supports companies that contribute to economy, innovation ecosystem and dynamism of cities

Gov. Phil Murphy on Monday stressed the state’s support for companies impacted by the recent failures of two banks — Silicon Valley Bank in California and Signature Bank in New York.

In addition to discussing three initiatives that are being launched by the New Jersey Economic Development Authority, Murphy said the state wanted to make a statement about its support for those impacted.

“Our goal is to ensure that every New Jersey company caught up in this mess is able to keep the lights on, meet payroll, pay rent and continue their day-to-day operations,” he said. “Ensuring the success of innovation-driven New Jersey businesses is a vital component in building the economy of the Next New Jersey.

“Now, more than ever, it is essential that our state supports companies that contribute to our economy, innovation ecosystem and the dynamism of our cities.”

New Jersey was one of just a few states to actively seek and announce solutions this weekend. SVB collapsed on Friday; Signature was closed over the weekend.

“I’m proud that we can lead the pack in doing this,” he said.

Despite the federal government promising to back the full amounts of deposits in both banks — more than the standard $250,000 — Murphy said the state is moving forward with three initiatives.

On Monday morning, the EDA launched its Angel Match program to help early-stage businesses bridge funding gaps as they scale their operations and refine their products.

On Wednesday, the Murphy said the Entrepreneur Support Program will launch to support repayment of investor loans advanced for working capital purposes. The program is designed specifically to help companies facing a liquidity crisis.

In addition, the EDA will be scheduling a special board meeting for consideration of further steps to provide emergency liquidity.

“By offering this suite of programs for New Jersey entrepreneurs impacted by the SVB and Signature collapses, we will continue to keep residents employed and support companies that are vital to our innovation ecosystem and our economic future,” Murphy said.