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Premier Lender Program


  • Dollar Amount

    Up to $2 million loan participation or $1.5 million loan guarantee for fixed assets


    Up to $750,000 loan participation or $1.5 million loan guarantee for term working capital.


    Up to $750,000 line of credit guarantee.

  • Uses

    Fixed assets or term working capital.

  • Benefits

    For small businesses,
    Lower cost financing


    For participating banks,
    Faster turnaround and reduced risk

  • Eligibility

    Must commit to create or retain one new full-time job for every $65,000 in EDA exposure within two years


    1.1X Debt Service Coverage
    Ratio


    100% loan-to-value
    for real estate
    and 90% for equipment

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The New Jersey Economic Development Authority (EDA) wants to ensure that New Jersey businesses have the resources necessary to expand and that our communities have a healthy climate for growth. That’s why we partner with banks to overcome the financial obstacles that can stall the growth and expansion of New Jersey-based businesses.

The Premier Lender Program Creates a Win-Win Opportunity for Businesses and Participating Lenders:


Benefits for Businesses:

  • Access to low-cost financing that includes EDA loan participation and/or guarantees, and line of credit guarantees.
  • Financing can be used for fixed assets or working term capital.
  • Attractive interest rates and terms.


“The financing enabled us not only to quadruple our space, but to also hire additional mechanics. We now have the capacity to seamlessly support more and larger clients.”

- Dennis Galloway, Owner
  DG and Sons (Rochelle Park, NJ)


“The funding provided has been pivotal to our efforts to bring our manufacturing in-house, affording us greater control over production and creating skilled jobs here in New Jersey. Our new capabilities will enable us to be more efficient and more responsive to our clients.”

- David Ronner, CEO
  ICF Mercantile (Warren, NJ)


Benefits for Participating Lenders:

Provides lenders with more flexibility by reducing the lender’s overall exposure.

  • Faster turnaround on requests including:
    • Approval or rejection of applications in 3-5 business days.
    • Written commitment letter issued within two days of approval.
    • Upon notice, closing may occur within three business days.

“EDA helps make things happen. There are lots of good businesses that are short on capital. With the help of the EDA, we can bridge the gap so businesses can retain liquidity with lower equity requirements.”

- Mark Noto, Senior Vice President, Investors Bank
Source: NJ Business Magazine

(Participation in EDA’s Premier Lender Program allows Valley National Bank to make loans it normally couldn’t consider based on collateral requirements.) “We can be more creative on loan structure, capital and liquidity issues. That helps companies that want to expand focus on productivity and growth, not just capital needs.”

- Jim Trouwborst, Senior Vice President, Valley National Bank
Source: NJ Business Magazine

Click here for a list of participating EDA Premier Lenders.


Program Details:

In partnership with EDA Premier Lender banks, EDA can provide the following loan participations/guarantees and line of credit guarantees:

  • Up to 50% of the bank loan amount for fixed asset loans; maximum EDA participation of $2,000,000; maximum EDA guarantee of $1,500,000; total EDA exposure not to exceed $2,750,000.
  • Up to 50% of the bank loan amount for working capital loans; maximum EDA participation of $750,000; maximum EDA guarantee of $1,500,000; total EDA exposure not to exceed $2,250,000.
  • Guarantee of up to 50% of the bank line of credit amount; not to exceed $750,000.

Eligibility Requirements:

Business applicants looking to qualify for a loan from a Premier Lender must*:
 
  • Be in operation for at least two full years.
  • Commit to creation or retention of one new, full-time job for every $65,000 of EDA exposure within two years.
  • 1.1X Debt Service Coverage Ratio
  • 100% loan-to-value for real estate and 90% for equipment
* Other credit criteria apply
 
Interest Rates and Borrower Fees:

Based on the 5-year US Treasury or floor of 2%, whichever is higher, with basis point additions for credit risk.
 
  • Application fee: $1,000.
  • Commitment fee: $750, payable at acceptance of term sheet.
  • Guarantee fee: Up to 0.5% sized to percentage guarantee required, not to exceed 0.5%. (For example, 25% guarantee will require a 0.25% fee, 50% guarantee will require a 0.5% fee.)


Division of Taxation Tax Clearance Certificate required.  Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.

  • Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance.
  • If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the Business Incentive Tax Clearance can be printed directly through PBS.
Please note:  It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate.  If a current and clear certificate is not evidenced to EDA at time of closing, EDA will not proceed with closing.


To learn more about the Premier Lender program or other products and services, contact us today at 866-534-7789 or click here to have an EDA representative contact you.