Here you will discover how your company can take advantage of the EDA's money-saving offers, such as tax exemptions, well-below-market rate loans and incentive grants for qualifying companies.

Bond Financing

Tax-exempt bond financing is available for eligible companies
seeking financing for capital improvements and equipment. Advantages include very low interest rates (fixed or variable) and longer terms than traditional loans. Tax-exempt bonds of up to $10 million may fund fixed assets, such as real estate acquisitions, machinery, equipment, building construction, and renovations.

Loans and Guarantees

The EDA lends directly to manufacturers at below market interest rates and may also guarantee loans made by private lenders like banks. Financing packages may range up to $4 million for qualified manufacturers through the various loan and guarantee programs. The EDA also offers working capital financing to help manufacturers fund operating expenses and inventory needs for up to $1 million. See News Release: EDA Has $100 Million Available to Help Manufacturers Acquire Facilities, Purchase Equipment.

Incentive Grants for Job Creation

Through the Business Employment Incentive Program (BEIP), the EDA awards grants to expanding or relocating businesses that create new jobs in New Jersey. Companies must create at least 10 new jobs if they are a high-tech/biotech manufacturer and at least 25 new jobs if they are in other industries. Grants may be made for up to 10 years, up to 80% of the state income taxes paid by new employees.

Grants and Low-Cost Financing for Energy Savings

Grants and rebates are available through the Board of Public Utilities to businesses undertaking renewable energy and energy efficiency improvements such as installation of solar panels and more efficient heating, air conditioning and lighting equipment. Manufacturers also may apply to the EDA for up to $750,000 in low-interest loans and guarantees to finance project costs not met by the grants or rebates.

NJ Business Growth Fund

EDA has teamed with PNC Bank to offer well-below-market rate loans for businesses that create jobs in New Jersey. Loans ranging from $100,000 to $2 million are available, with an interest rate of Prime minus 2.5%, or fixed at the five-year U.S. Treasury rate. The EDA will provide up to a 50% guarantee of any loan, increasing a company’s ability to borrow significantly. A Business Growth Fund Loan may be used for equipment or real estate purchases by businesses with annual sales up to $20 million. Manufacturers must pledge that for every $50,000 guaranteed by the EDA, at least one job will be retained in New Jersey.

Back to Manufacturing Counts Home Page

Back to NJBIA Home Page