New Jersey Loan Expansion and Network Development (nj lend)

Open in new Tab New Jersey Loan Expansion and Network Development (nj lend) Checking your eligibility or exploring your financing options? START HERE: Submit Financing Interest Form APPLY HERE New Jersey Loan Expansion and Network Development ( NJ LEND is a 3-year pilot program designed to expand NJEDA’s lending capacity to further support the growth and stability of New Jersey-based businesses. Eligible businesses can access up to $5 million in financing to purchase or refinance owner-occupied commercial real estate, acquire equipment, or secure working capital. Through direct NJEDA loans or partnerships with NJEDA-enrolled Premier Lenders, NJ LEND broadens financing options for both for-profit and non-profit businesses, helping them manage the costs most critical to their operations. This program strengthens NJEDA’s ability to provide comprehensive financial support and ensures businesses have access to the capital they need to successfully navigate today’s evolving economic environment. AMOUNT Fixed Assets (Owner Occupied Commercial Real Estate or Equipment) $2,000,000.01-$5 million ………. Working Capital $750,000.01- $1 million ………. Line of Credit Guarantee $750,000.01 – $1 million ………. Refinancings are capped at $2.5 million. BENEFITS Higher Loan Limits: Access up to $5 million in financing for owner-occupied commercial real working capital needs. ………. Flexible Financing Options: Finance your project through direct NJEDA loans or, in partnership with NJEDA Premier Lenders, through loan participations or line of credit guarantees. ………. Favorable Loan Terms: Terms up to 30 years for real estate, 10 years for equipment, 7 years for working capital. ………. NJEDA fixed interest rates based on Treasury rates. ELIGIBILITY New Jersey-based small businesses in operation for at least two full years (nonprofits for at least 3 full years) that: Have no more than 750 employees. ………. Commit to the retention and/or creation of one new full-time job for every $65,000 of NJEDA exposure within 2 years of closing. ………. Meet a 1.1x global debt service coverage ratio; 1.0x debt service coverage for nonprofits. ………. Secure the loan with fixed assets ( real property and machinery/ equipment). ………. Homebased businesses are ineligible. ………. Additional eligibility requirements are outlined in the NJ LEND board memo and product specifications. LOAN AMOUNTS ELIGIBILITY RATES & TERMS fees Questions LOAN AMOUNTS For NJEDA direct loans: Fixed Asset Loan (Owner-occupied commercial real estate or equipment): $2,000,000.01-$5 million Working Capital Loan: $750,000.01 – $1 million For loan participations and line of credit guarantees financed in partnership with Premier Lender banks*: Fixed Asset Loan Participation(Owner-occupied commercial real estate or equipment): $2,000,000.01 – $5 million *NJEDA will participate in up to 50% of the bank loan amount. Working Capital Loan Participation: $750,000.01 – $1 million *NJEDA will participate in up to 50% of the bank permanent working capital loan amount. Line Of Credit Guarantee $750,000.01- $1 million *NJEDA will Guarantee of up to 50% of the bank line of credit amount. Any request for refinancing is capped at $2.5 million. ELIGIBLE USES of FUNDS The NJ LEND program funds are designated to support businesses through the following uses: Purchase or Refinance of Commercial Real Estate : Purchase of owner occupied commercial real estate located in NJ (the business must occupy and operate from at least 51% of the square footage of the NJ commercial property). Equipment Acquisition : Purchase of new equipment excluding rolling stock and soft costs