The New Jersey Economic Development Authority on March 23 announced that seven new micro business lenders have been awarded funding under the Main Street Lenders Grant program.
To date, the program has facilitated more than 250 loans totaling more than $8.8 million, supporting nearly 3,000 small businesses across the state through technical assistance and access to capital.
The Main Street Lenders Grant program offers eligible lenders grants of up to $1.5 million each, with up to $500,000 reserved for technical assistance needs. Entities approved for the grant provide flexible and low-cost financing through working capital term loans to qualified New Jersey micro businesses, as well as technical assistance to help micro businesses access capital. These lenders also offer one-on-one advisory services, educational programming and support based on each business’s specific needs.
“The Main Street Lenders Grant program reflects New Jersey’s ongoing commitment to small businesses and inclusive economic growth,” said NJEDA Chief Executive Officer Evan Weiss. “Access to capital continues to be a barrier for many micro businesses but this program is helping ensure entrepreneurs have the resources needed to succeed, leading to greater job growth and economic activity, particularly in disadvantaged communities.”
Loans provided by approved and participating lenders are available for eligible micro businesses with less than 10 full-time employees and less than $1.5 million in annual revenue. The loans carry no prepayment penalties, with interest rates capped at 5% and no payments for at least 12 months after closing.
Micro businesses may use the loan funding for a wide range of business working capital expenses, including equipment purchases, rolling stock, payroll, marketing, inventory, rent or mortgage payments, property taxes, utilities, and other day-to-day operational costs.
The following lenders received $1.5 million in funding and are accepting microbusiness loan applications:
- Ascendus, Inc.: offers loans between $10,000 and $100,000 with loan terms up to six years and interest rates of 5%.
- Carver Federal Savings Bank: offers loans between $10,000 and $50,000 to businesses that have a commercial or home-based location in New Jersey.
- Cumberland Empowerment Zone Corporation (CEZC): offers for-profit and nonprofit businesses in Cumberland County loans between $10,000 and $25,000 with no collateral required, and from $25,001 and $100,000 with collateral required.
- Grow America: offers loans between $10,000 and $100,000, with interest rates not to exceed 5%.
- Invest Newark: provides loan amounts between $10,000 and $100,000 to home-based, non-profit, sole proprietors, and start-ups with a commercial location in Newark.
- Renaissance Economic Development Corporation: offers loans between $10,000 and $50,000 with 60-month terms and 5% fixed rates to businesses in Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Passaic, Somerset, Sussex, Union, and Warren Counties.
- TruFund Financial Services, Inc.: offers loans between $10,000 and $100,00 to for-profit and nonprofit organizations located in low- to moderate-income (LMI) areas and that employ LMI workers.
