The New Jersey Economic Development Authority Board of Directors approved a review of the Main Street micro-business loan on Sept. 14, removing the collateral requirement for business owners.
The pilot product, a successor to the Micro-Business Loan Program, provides financing of up to $50,000 to eligible New Jersey micro-businesses with gross annual revenues of $1.5 million or less and that 10 full-time employees or less at the time of the request and for three months prior to the date of the request.
Additional requirements for companies interested in applying include:
- must be legally registered to do business in New Jersey with a business location in the Garden State,
- must have been formed at least six months before the date of the application,
- must be in good standing with the New Jersey Department of Labor and Workforce Development and the NJ Department of Environmental Protection at the time of application,
- and must provide a current tax clearance certificate prior to approval to demonstrate good standing with the NJ Division of Taxation.
Loan applications will be launched on October 6 at 10 a.m. EDT.
“The Main Street Micro-Business Loan will be a tremendous boon to small businesses working hard to grow their footprint in the Garden State,” said NJEDA CEO Tim Sullivan. “Removing capital barriers for our state’s smallest businesses is another step toward realizing Governor Murphy’s vision of a stronger, fairer economy because more micro-business owners won’t have access to the financing they need to create more family and economic jobs. Opportunities.”
Eligible businesses can apply for funding from a $20 million fund to cover future operating expenses. Of this total funding, $8 million will be reserved to support eligible entities located in New Jersey’s Opportunity Zones.
Loans have a repayable component. According to the rules of the program, the borrower is required to make payments from the second year to the end of the fifth year.
Instead of requiring collateral, the program’s underwriting criteria will be based solely on credit rating. At least one owner must have a credit score of 600 or higher to be considered eligible.
NJEDA says applications will be considered on a first-come, first-served basis. Only one application per EIN is allowed.
On September 26 at 2:00 p.m., NJEDA will host an information session on the Main Street Micro Business Loan. More information about the program, the application process and the listening session can be found here.