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NJEDA Provides Enhancements to Lending Programs for Small Businesses
By Jeffrey D. Winitsky on November 9, 2018

On November 9, 2018, the New Jersey Economic Development Authority ("NJEDA") provided an outline of several new enhancements to its existing lending programs for small businesses in New Jersey.  In particular, the NJEDA announced changes to its "Premier Lender Program" and its small business lending programs, as well as the implementation of the new "Access Program."

The Premier Lender Program provides financial access by small businesses to certain NJEDA-preferred lenders that includes NJEDA loan participation and/or loan guarantees and line of credit guarantees, which allows for lower interest rates and easier access to financing fixed assets and working capital.  Further information regarding the Premier Lender Program can be found at the NJEDA's website at

Changes to the Premier Lender Program include extending the NJEDA's loan term and amortization from 10 years to 30 years, which changes also apply to the NJEDA's direct loan programs.  In addition, the NJEDA will now be able to fix interest rates for up to 30 years across its small business lending programs.

The "Access Program" is a pilot lending program that provides financing to small businesses in New Jersey, either in the form of direct loans through NJEDA, or through loan participations or guarantees in partnership with a NJEDA Premier Lender.  The Access Program is different from other NJEDA financing programs in that it provides greater flexibility to borrowers by placing greater emphasis on the borrower's cash flow and less emphasis on hard collateral.  Basic eligibility requirements for Access program lending include:  (a) the business has been in operation for at least two full years; (b) the average historical and global debt service over the past two years is at least 1.25x; and (c) the FICO score for 50 percent of the personal guarantors must be at least 700.  Applications for the Access Program are now available for small businesses through the NJEDA's website at

To the extent you would like any additional information about the enhanced funding programs offered by the NJEDA for small businesses, please contact the attorneys in Parker McCay's Finance and Corporate departments at any time.

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.

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