New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31B - DIRECT LOAN PROGRAM › Subchapter 1 - DIRECT LOAN PROGRAM › Section 19:31B-1.1 - Program description

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The Authority is empowered to make direct
				  loans to applicants that are unable to obtain funding from conventional sources
				  even with the help of an Authority guarantee.
(b) Except as otherwise provided in this
				  subsection, direct loans are available in a maximum amount of $ 2,000,000 for
				  fixed asset financing and $ 750,000 for working capital.
1. For the Smart Growth Pre-development Loan
				  Program, the maximum loan amount will be $ 1 million.
2. For the Brownfields Loan Program, the
				  maximum loan amount will be $ 5,000,000 and the minimum shall be $
				  100,000.
3. The maximum amount of
				  combined total financing under the Smart Growth Pre-development and Brownfield
				  Redevelopment loan program(s) is $ 1.0 million.
4. The maximum amount of total financing for
				  the New Jersey Growth Fund Program shall be $ 1 million per
				  transaction.
5. For the urban loan
				  product, the maximum loan amount will be $ 3 million, not to exceed 50 percent
				  of the total project costs, for those projects wherein the tenant or owner will
				  provide from non-Authority sources a capital investment of under $ 70 million;
				  and $ 5 million for those projects wherein the tenant or owner will provide
				  from non-Authority sources a capital investment of over $ 70 million.
6. For the Edison Innovation Angel Growth
				  Fund, the Authority may award up to $ 250,000 in convertible debt financing to
				  leverage private angel investments, on a two to one angel matching fund
				  requirement, to a business that has generated a minimum of $ 250,000 in prior
				  12-month commercial revenues; for the Edison Innovation VC Growth Fund, the
				  Authority may award up to $ 1 million in convertible debt financing to leverage
				  institutional venture backed investments or strategic investments that may be
				  made by a variety of sources, including, but not limited to, commercial or
				  institutional entities, nonprofit organizations with a similar focus, or
				  universities, all of whom are interested in providing funding to advance the
				  business in which they invest, on a one to one matching fund requirement, to a
				  business that has generated a minimum of $ 500,000 or for the Edison Innovation
				  Angel Growth Fund a minimum of $ 250,000 in prior 12-month commercial revenues;
				  and, for the Edison Innovation Growth Stars Fund, the Authority may award up to
				  $ 500,000 in convertible debt financing, on a one to one matching fund
				  requirement, to a business that has generated a minimum of $ 2 million in prior
				  12-month commercial revenues. Except as otherwise provided, the total amount of
				  assistance that a business may receive under the various programs funded by the
				  Edison Innovation Fund, or any similar assistance provided by any other State
				  agency, shall not exceed $ 1 million dollars. Notwithstanding the foregoing,
				  any amount received by a business under the Edison Innovation Growth Stars
				  Fund, Edison Innovation Clean Energy Manufacturing Fund, and Edison Innovation
				  Green Growth Fund, shall not be considered in the $ 1 million dollar
				  limit.
7. For the Loans to Lenders
				  component of the Fund for Community Economic Development, the maximum loan
				  amount will not exceed $ 750,000, except that Loans to Lenders may be used to
				  develop grocery stores and supermarkets with a maximum loan amount of $ 3
				  million, provided that no more than $ 4 million will be used for this purpose.
				  For the pre-development assistance component of the Fund for Community Economic
				  Development, the maximum loan amount will not exceed $ 50,000 per
				  project.
8. For the Real Estate
				  Impact Fund:
i. The maximum loan amount for a
				  developer or business will be $ 3 million, not to exceed 25 percent of the
				  total project costs; and the total amount of public assistance that a developer
				  or business may receive shall not exceed 50 percent of the total project costs;
				  and
ii. The maximum loan amount for
				  a municipality will be $ 750,000; the loan amount for a municipality shall be
				  the lesser of 100 percent of the total project costs or the property's
				  appraised value in its remediated state, divided by 120 percent, rounded to the
				  nearest one hundred dollars.