The amount of loans granted to small businesses by New Jersey Economic Development Authority has doubled this year. Loans worth $50 million have been provided this year and it is the highest since the launch of Business Growth Fund about seven years ago.
Loans made by PNC Bank along with State agency providing partial guarantee are designed so as to offer small companies below market rates while simultaneously providing them incentives for their growth. For the economy’s growth, it is found that small and mid sized businesses are very vital and they serve as economy’s bedrock. It is also critical for small businesses to acquire capital at affordable rates, in-order, to continue expansion and growth in a challenging environment.
Businesses can borrow $3 million and should be in a position to create full-time jobs in the state for every $50,000 that is guaranteed by the authority. For this category of loan, manufacturers are the only exception as they need to maintain existing full-time jobs for every single $50,000 guaranteed. It is normal for the authority to provide guarantees of 25 percent or 50 percent.
The Business Growth Fund, since its launch in 2004, has provided $125 million in PNC loans to 265 projects. Just the previous year, 40 businesses received about $25 million fund that has helped to create 160 jobs and preserve 500 jobs.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to