FAQ


How do I get a grant to start a business?

The concept of “grant/free money” from the state government or federal government does not exist. However, the EDA offers low-interest loans to small and mid-sized businesses that meet our qualifications.

Does the EDA provide financing for working capital or debt consolidation?

The EDA reviews/considers these type of financial requests. We will review your proposal to determine where you obtained the loan, the original loan amount, the approximate balance and how the money was used. We will also look at the public purpose and creditworthiness of the company. The financial request will need to meet EDA’s qualifications.

What is the EDA’s interest rate?

The EDA’s interest rate is generally 1% below the bank rate. The rate is determined by a number of variables, such as type of industry, project location, and job creation. We can offer either a fixed rate or a floating rate.

What is the maximum amount of money I can borrow?

To determine the maximum loan amount, the EDA will need to know your total project costs, how much equity you can put into the company, over what time period the money will help the company, and your intended use for the money.

Does my business have to be located in a targeted area or be a targeted business (such as manufacturing) to qualify for funding through the EDA?

The EDA reviews each business plan/proposal on a case-by-case basis. Your business plan should address the following questions:

  • Is your business a startup or an existing company?
  • Where will your business be located?
  • What type of business is it?
  • What is the total project cost?
  • How will the money be used?
  • How many employees do you currently have? How many employees do you anticipate within two years?
  • How do you plan to obtain other sources of funding?

Where do I go to get help to write a business plan?

EDA partners with a select group of organizations that provide a wide array of services to New Jersey small businesses and entrepreneurs, including assistance with writing a business plan. Learn more about EDA’s technical assistance partners.

Can the EDA partner with my bank or any other credit provider?

Yes, the EDA can partner with a bank or credit provider to help you potentially achieve a blended interest rate.

Does the EDA provide financing for my business located outside of NJ?

No, the business must be located in New Jersey in order to qualify for any EDA resources.

How do I register my business?

To register in the State of New Jersey as a small, minority-owned, or woman-owned business, contact the New Jersey Division of Minority and Women Business Development at (609) 292-2146, or visit http://www.nj.gov/njbusiness/contracting/.

Do I qualify for a grant or low-interest loan since I am a woman, minority or have a small business?

The EDA reviews each business plan/proposal on a case-by-case basis. Your business plan should address the following questions:

  • Is your business a startup or an existing company?
  • Where will your business be located?
  • What type of business is it?
  • What is the total project cost?
  • How will the money be used?
  • How many employees do you currently have? How many employees do you anticipate within two years?
  • How do you plan to obtain other sources of funding?

What is tax-exempt bond financing and who can use it?

Interest income earned by purchasers of tax-exempt bonds is exempt from both federal and state income taxes. These savings are passed on to borrowers in the form of below-market interest rates. Qualified borrowers or uses include:

  • Manufacturing facilities
  • Government-owned public airports, docks and wharfs
  • Water and sewer services, sewage disposal facilities, solid waste disposal facilities, electric and gas furnishing facilities, and qualified hazardous waste facilities
  • Certain not-for-profit 501(c)(3) entities, including service organizations, educational institutions and healthcare facilities
  • Certain assisted living facilities that qualify as residential rental projects
  • Municipal governments and other governmental entities