Applications for the New Jersey Entrepreneur Support Program continue to be submitted to the New Jersey Economic Development Authority. The $5 million program encourages investors to provide additional funding to businesses by providing an NJEDA guarantee on loans advanced for working capital purposes.
The NJEDA launched the program in 2020 to help Garden State entrepreneurs navigate COVID-19 related cashflow constraints, then relaunched it in March 2023 in light of challenges in the economy and venture banking system.
According to estimates from PitchBook, venture capital and angel investment activity has declined since 2021, with a 40% reduction in the amount of companies receiving investment and a 50% decrease in investment funding.
To respond to declining investment activity and unsteady market conditions, the NJEDA aims to boost investor confidence in New Jersey companies and increase access to capital for founders through the Entrepreneur Support Program.
“Increased investment into New Jersey companies is essential to supporting Gov. Phil Murphy’s vision of bolstering the Garden State’s longstanding leadership in innovation,” NJEDA CEO Tim Sullivan said. “Especially in industries like biotechnology, the New Jersey Entrepreneur Support Program provides a unique solution to assist New Jersey companies in their financing endeavors when opportunities for private investment are not available.”
For a full list of eligibility requirements and further information on the program, click here.