Pursuant to New Jersey Governor Phil Murphy’s Economic Development Strategic Plan for the State of New Jersey ("Strategic Plan"), the New Jersey Economic Authority ("EDA") launched a new, dedicated unit ("Unit") to support the small-business community. The Unit will provide New Jersey small-businesses with financial, workforce, and technical support, with a focus on historically underrepresented small businesses such as minority, veteran, disability and LGBTQ-owned enterprises.
Historically, the EDA has provided large corporations with tax breaks and funding mechanisms. However, under the Strategic Plan, the EDA will shift more focus to programs that benefit small companies and entrepreneurs. To more efficiently and effectively reach target communities and sectors, the EDA also announced it is shifting its business development efforts to a regional approach, allowing for greater capacity to help increase access to capital and training for businesses throughout the State and in all stages of development. The regional approach will help to maximize the EDA’s interaction with its diverse array of customers and stakeholders, including businesses and communities.
Through the launch of the Unit, revisions to current EDA programs, and the creation of new ones, the Governor seeks to improve the ability of small businesses to grow and create jobs in New Jersey. For example, the EDA began accepting applications for the newly created $15 million Access Program last month. This program offers low-cost financing in the form of direct loans or loan participation and guarantees. The EDA also revised its existing Premier Lender program to expand the loan term and amortization from 10 years to 30 years and allow for a fixed interest rate for up to 30 years.
Parker McCay will continue to monitor the status of all new and existing EDA programs as the EDA continues to identify new ways to assist small business in support of the Strategic Plan. In the interim, please contact Parker McCay’s Corporate Department with any questions on how the changes made by the EDA so far may benefit your business.
The content of this post is for informational purposes only and should not be construed as legal advice or legal opinion. You should consult a lawyer concerning your specific situation and any specific legal question you may have.