Last week, in recognition of National Small Business Week from April 28 to May 4, the New Jersey Economic Development Authority announced that more than $3.6 million in working capital loans were approved under the NJ Capital Access Fund since the program launched in November 2023.
The $100 million fund, supported by the State Small Business Credit Initiative program and a private capital match, leverages Community Development Financial Institutions and Minority Deposit Institutions to offer technical assistance and an affordable and flexible working capital loan product to assist small businesses and nonprofits with payroll, rent, utilities and other operational business expenses.
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In line with the NJEDA’s commitment to supporting diverse business owners and creating an equitable economy, 52% of the program’s loans were approved for women- and minority-owned small businesses and nonprofits and 72% of the overall funding supported business owners identified as socially and economically disadvantaged individuals.
“Under Gov. Phil Murphy’s leadership, New Jersey remains committed to supporting small business growth by providing increased access to capital and resources to entrepreneurs and small business owners. Through our suite of small business support programs, the NJEDA is helping expand economic opportunities, foster business growth and ensure the longevity and increased vitality of New Jersey’s main streets,” NJEDA CEO Tim Sullivan said. “The milestone announced today demonstrates how the NJ Capital Access Fund is providing a streamlined path to loans for small businesses, allowing them to continue to grow and thrive in the Garden State.”
Utilizing a technology platform provided by the Community Reinvestment Fund, the NJ Capital Access Fund currently works alongside the New Jersey Small Business Development Center and four CDFIs to offer technical assistance and working capital loans up to $250,000 to small businesses and nonprofits that have been operating for at least 12 months, with revenue of $10 million or less and fewer than 50 employees. Participating CDFIs include Renaissance Economic Development Corp., Ascendus, Grow America and Pursuit.
Working capital loans administered by each participating CDFI offer flexible features, including terms from 36 to 60 months, low fees to borrowers, fixed competitive interest rates and no specific collateral requirements. The NJ Capital Access Fund further expands access to capital by purchasing 80% of all eligible working capital loans, allowing the CDFIs to increase lending capacity and provide more loans to underserved communities. To date, the fund has been utilized to purchase $2.9 million in eligible loans.
