Up to $5 million TD Bank term loan with a partial, subordinate EDA guarantee of up to 50% (not to exceed $2 million for fixed assets and $1.5 million for working capital.)
Up to $5 million TD Bank line of credit with partial, subordinate EDA guarantee of up to 50%, not to exceed $500,000
Fixed assets, working capital or refinancing of existing debt
Lower interest rates
Optional fixed or variable below-market interest rates
See "Program Details" below
The approval process involves both TD Bank and the EDA, and both organizations will work together in making a credit decision on each loan application. Applicants under this program must meet specific eligibility requirements including:
- Applicant must be doing business in New Jersey
- Create or retain jobs
- 1.1X Historical/Global Debt Service Coverage Ratio.
- Loan-to-value up to 80%.
- Must be authorized to do business in New Jersey. A Corporate Status report will be obtained by EDA to confirm this.
- .25-.50 discount off of TD prevailing rates
- Up to 10 years for commercial real estate, machinery, or equipment loans.
- 1 year term for lines of credit.
- Application fee: $1,000
- Commitment fee: $750
- 25 bps above standard EDA guarantee fee which is set at 1 bps for each percentage of guarantee times the amount of guarantee times number of years of the guarantee. (i.e. 30% guarantee would use a calculation of 30 bps + 25 bps for a total of 55 bps times the guarantee amount times # years.)
- Commitment extension: $750
- $1,000 modification fee for guarantee renewals
Division of Taxation Tax Clearance Certificate required. Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.
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.
- 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.
* All fees are non-refundable.