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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, working capital and/or refinancing of existing debt.

  • 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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Benefits for Small Businesses

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.

EDA partners with Premier Lender banks to provide small businesses with low cost financing that includes EDA loan participation and/or guarantees.  Businesses can use this financing for fixed assets or term working capital.

Click here for a list of 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
 
Banks that have been approved by the EDA for Premier Lender status benefit from faster turnaround and reduced risk through EDA participation.

Premier Lenders that submit requests for loan participations and/or guarantees from the EDA through the Premier Lender Program can expect the following:
 
  • EDA approval or rejection applications in as early as three to five business days.
  • A written commitment letter is issued within two days of approval.
  • Upon notice, closing may occur within three business days of receipt of commitment letter.
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.