NJ Incentives | Finance, Loans, IRB, Workforce Development

A comprehensive list of New Jersey financial aid, loans, grants, abatements, workforce development, exemptions, funds & capital investment opportunities.


https://businessfacilities.com/2016/03/nj-incentives-and-workforce-development-guide/
A comprehensive list of New Jersey financial aid, loans, grants, abatements, workforce development, exemptions, funds & capital investment opportunities.
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New Jersey Incentives and Workforce Development Guide

NJ Incentives | Finance, Loans, IRB, Workforce Development

For a list of New Jersey economic development agencies that can help with the site selection process, visit our Online Site Seekers’ Guide.

 

New Jersey Partnership for Action: Created by Governor Chris Christie and led by Lt. Governor Kim Guadagno, the Partnership for Action is a four-pronged public-private approach for all economic development activity in New Jersey and the starting point for all initiatives, policies and efforts to grow New Jersey’s economy and create quality, sustainable jobs in our communities. The four elements of the Partnership include:

  • Choose New Jersey, an independently funded and operated 501(c)(3) nonprofit corporation created to encourage and nurture economic growth throughout New Jersey;
  • the Business Action Center, which reports directly to the Lt. Governor and provides the business community with a single point of contact, applying a proactive, customer-service approach to businesses’ interactions with State government;
  • the New Jersey Economic Development Authority (EDA), serving as the state’s financing arm; and
  • the office of the Secretary of Higher Education which coordinates, plans, and develops policies, and advocates for the state’s higher education system.

 


FINANCING & GRANTS

Bond Financing: A creditworthy manufacturing company, a 501(c)(3) not-for-profit organization or an exempt facility in New Jersey can apply for long-term financing under the Bond Financing Program. $500,000 to $10 million in tax-exempt bonds for for-profit companies, with both a fixed or variable interest rate, and terms up to 20 years for real estate and 10 years for equipment. Or, $500,000 with no dollar limit in tax-exempt bonds for qualified not-for-profit organizations.

  • Tax-exempt bonds for eligible for-profit companies can be used to finance capital improvements and expansions, including real estate acquisitions, new equipment, machinery, building construction and renovations.
  • Tax-exempt bonds for not-for-profit organizations seeking capital to expand community services can be used to finance land and building acquisitions, new construction and renovations, equipment purchases, debt refinancing and working capital.
  • Government tax-exempt bonds can be used for projects that are owned and operated for the benefit of local, county and state government bodies.
    Direct Loans for Small and Mid-Sized Businesses: New Jersey businesses in need of financing and committed to job creation/retention may be eligible for up to $2 million for fixed assets, or up to $750,000 for working capital with the option of either a fixed or variable below-market interest rate.

Edison Innovation Fund: The Edison Innovation Fund seeks to develop, sustain and grow technology and life sciences businesses that will lead to well-paying job opportunities for New Jersey residents. The Edison Innovation Fund is structured as subordinated convertible debt and benefit technology and life sciences companies by providing growth capital to directly fund uses such as hiring key staff, product marketing and sales.

Garden State Growth Zone (GSGZ) Business Improvement Incentive: The GSGZ Business Improvement Incentive is a new pilot program that aims to enhance the vibrancy of commercial corridors through building improvements (façade and interior) in the five Garden State Growth Zones (Atlantic City, Camden, Passaic, Paterson and Trenton.) The program will offer grants of up to 50% of total project cost, grant amount not to exceed $20,000, to businesses operating within the first-floor of a commercial corridor in the GSGZ that are planning to make building improvements, with a minimum project cost of $5,000.

Garden State Growth Zone (GSGZ) Business Lease Incentive: The GSGZ Business Lease Incentive is a new pilot program that aims to enhance the vibrancy of commercial corridors through business attraction and retention in the five Garden State Growth Zones (Atlantic City, Camden, Passaic, Paterson and Trenton.)  This program will offer a subsidy of 15% of an annual lease payment, for two consecutive years, to for profit businesses and non-profit organizations in eligible areas that plan to lease at least 500 square feet of new or additional market-rate, first-floor office, industrial or retail space for a minimum five-year term.

New Jersey Advantage Program: Creditworthy New Jersey business in need of financing and committed to job creation/retention in New Jersey may be eligible for financing through the New Jersey Advantage Program, a joint program of the EDA and TD Bank. 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.), or Up to $5 million TD Bank line of credit with partial, subordinate EDA guarantee of up to 50%, not to exceed $500,000. 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.

Premier Lender Program: EDA partners with Premier Lender banks to provide small businesses with low cost financing that includes EDA loan and line of credit participation and/or guarantees. Businesses can use this financing for fixed assets, working capital to meet operating needs, and/or the refinancing of other bank debt. In partnership with EDA Premier Lender banks, EDA can provide the following loan and line of credit participations/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.
  • Up to 50% of the bank line of credit amount; not to exceed $750,000

Real Estate Impact Fund: The goal of the Real Estate Impact Fund is to support and foster redevelopment in strategic urban and other significant locations that would not otherwise occur in the near term and to strengthen existing and catalyze future development opportunities and private investment. The Fund will advance economic development by supporting projects consistent with local redevelopment plans or strategies, attract private investment, and by creating or retaining jobs.  Under the Private Component of the Fund, for profit and non-profit developers and business entities with demonstrated experience in successfully completing real estate development projects may be eligible for financing of up to $3 million for costs associated with projects located within Targeted Areas.  Under the Public Component of the Fund, properties in Targeted Areas, that are owned by the municipality, local redevelopment agency or county improvement authority may be eligible for financing of up to $750,000 for eligible project costs.

Small Business Fund: A small, minority-owned or women-owned business in NJ in operation for at least one full year or not-for-profit corporation in operation for at least three full years may qualify for up to $500,000 for credit scores greater than or equal to 680; and up to $500,000 for Not-for-Profits with 1.0X historical debt service coverage. Financing may be used for fixed assets and working capital.

 

 

TAX INCENTIVES

Angel Investor Tax Credit Program: The New Jersey Angel Investor Tax Credit establishes credits against corporation business or gross income taxes for the purposes of stimulating investment in New Jersey emerging technology businesses. Taxpayers, filing in New Jersey, who invests in calendar year 2012 or after, in a qualifying New Jersey emerging technology business with fewer than 225 employees, at least 75% of whom work in New Jersey, may be eligible for tax credits for up to 10% of a qualified investment in an emerging technology business with a physical presence in New Jersey and that conducts research, manufacturing, or technology commercialization in the state.

Economic Redevelopment and Growth Program (ERG): The State’s key developer incentive program. For commercial projects, an incentive grant reimbursement of up to 20% of total project cost, with additional grant funding of up to 40% possible based on project type and/or location. For residential projects, a tax credit of up to 20% of total project cost and a bonus of an additional 10% (for a total of 30%) if the project constructs and reserves at least 10% of the residential units for moderate income housing.

Grow New Jersey Assistance Program (Grow NJ): Grow NJ is a powerful job creation and retention incentive program that strengthens New Jersey’s competitive edge against tax incentive programs in surrounding states. Businesses that are creating or retaining jobs in New Jersey may be eligible for up to tax credits ranging from $500 to $5,000 per job, per year with bonus credits ranging from $250 to $3,000 per job, per year. Through recent enhancements to the program, geographic boundaries have been extended, and capital investment and employment eligibility requirements have been reduced.

Technology Business Tax Certificate Transfer (NOL) Program: The Technology Business Tax Certificate Transfer Program enables technology and biotechnology companies that have promise but are not currently realizing a profit to turn net operating losses and R&D tax credits into capital. Net operating losses and R&D tax credits may be sold for at least 80% of their value, up to a maximum lifetime benefit of $15 million per business

 

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