NJ ENTREPRENEUR SUPPORT PROGRAM

Open in new Tab NJ ENTREPRENEUR SUPPORT PROGRAM The NJEDA is now accepting applications for this program. Please send an email to  [email protected]  to speak with a Technology Innovation Team Member. The NJ Entrepreneur Support Program is a $5 million program that provides a guarantee on a private investor’s convertible note or bridge loan, advanced for working capital to a NJ Startup Business in an NJEDA identified high technology “targeted industry.” PROGRAM DETAILS ELIGIBILITY ASSISTANCE MORE INFO PROGRAM DETAILS The NJ Entrepreneur Support Program is a $5 million program that provides a guarantee of an investor loan advanced for working capital to businesses. Completed applications from investors for guarantees will be considered on a first-come, first-served basis, including the ability to consider multiple guarantees per company towards the $400,000 company exposure cap. Investor loans must be used by New Jersey entrepreneurial companies for working capital. ELIGIBILTY The NJ Startup Business and the Investor must meet the program requirements as detailed below: NJ Startup Business Requirements: Minimum of 50% of employees in New Jersey, as reported on NJWR-30, Federal Form 941, PEO Letter, or other similar documentation, at application submission date Fewer than 225 total employees at the time of application A corporate headquarters in New Jersey (including at least one C suite member with a principal office in New Jersey) Aligned with at least one of the NJEDA’s established targeted industries A valid New Jersey tax clearance certificate from the Division of Taxation Good standing with NJ Workforce Development (DOL) at time of application and at time of any payment events with all decisions of good standing at the discretion of the Commissioner of the Department of Labor Investor / Investment Requirements: Investors can include, but are not limited to, institutional corporations A valid New Jersey tax clearance certificate from the Division of Taxation (if required) Employees/founders are not eligible for the guarantee Qualified investors are not required to be New Jersey residents The bridge loan/convertible note must be dated March 10, 2023 or later, have a minimum of a one-year maturity, be unsecured, and cannot have any current payment requirements (principal or interest) in year one In the event the investor converts the note, it may be eligible for the New Jersey’s Angel Investor Tax Credit Program if all program eligibility is met If the investor converts the note to equity, the Authority will be provided with a warrant for 20% of the guarantee amount, under the same pricing as the investor’s conversion pricing on the Authority’s standard warrant form Investor loans must be used by New Jersey entrepreneurial companies for working capital. Please be advised: New Jersey State law prohibits most cannabis license and certification holders from receiving or continuing to receive an economic incentive from the NJEDA. If the applicant, or any person who controls the applicant or owns or controls more than one percent of the stock of the applicant, has applied for or received a license or a certification from the New Jersey Cannabis Regulatory Commission (NJ-CRC), the applicant is ineligible for this program and should not proceed with an application. If an application is received from an applicant that meets this criteria, the application will be declined and the application fee will not be refunded. ASSISTANCE 80% guarantee of investment amount, not to exceed $400,000 per NJ Company for one year from the date of note issuance The total funding pool for the program is $5 million, and completed applications from investors for guarantees will be considered on a first-come, first-served basis, including the ability to consider multiple guarantees per company towards the $400,000 company exposure cap. MORE INFO