May 3, 2024
Four Minute reading
52% of loans were approved for women- and minority-owned small businesses and nonprofits
TRENTON, NJ (May 3, 2024) – In honor of National Small Business Week (April 28-May 4). New Jersey Economic Development Authority (NJEDA) Today, we announced the approval of over $3.6 million in working capital financing. NJ Capital Access Fund, since the program began in November 2023.Managed by designated fund manager culvert impact, a $100 million fund supported by the State Small Business Credit Initiative (SSBCI) program and private capital matching, will leverage community development financial institutions (CDFIs) and minority depository institutions (MDIs) to provide technical assistance and We offer flexible working capital at affordable prices. This loan product helps small businesses and nonprofit organizations with payroll, rent, utilities, and other operating expenses.
In line with NJEDA's commitment to supporting diverse business owners and building an equitable economy, 52 percent of the program's loans were approved for women- and minority-owned small businesses and nonprofits, and 72 percent of total funding provided support to business owners who were deemed to be suffering from social injustice. Economically Disadvantaged People (SEDI).
“Under Governor Phil Murphy’s leadership, New Jersey remains committed to supporting small business growth by increasing access to capital and resources for entrepreneurs and small business owners. Through our small business support programs, we help expand economic opportunity, foster business growth, and extend the longevity and vitality of New Jersey's Main Streets.” NJEDA Chief Executive Officer Tim Sullivan said: “The milestones announced today highlight how the New Jersey Capital Access Fund provides a streamlined path to small business lending, enabling small businesses to continue to grow and thrive in the Garden State. It shows.”
Leverage the technology platform provided by Community Reinvestment Fund, USAthe New Jersey Capital Access Fund is currently New Jersey Small Business Development Center The four CDFIs will provide technical assistance and working capital loans of up to $250,000 to small businesses and nonprofit organizations that have been in operation for at least 12 months, have revenue of $10 million or less, and fewer than 50 employees. Participating CDFIs include: Renaissance Economic Development Corporation, Ascendas, grow americaand Pursuit. Working capital loans managed by each participating CDFI offer flexible features, including terms ranging from 36 to 60 months, low fees to borrowers, competitive fixed interest rates, and no specific collateral requirements. The NJ Capital Access Fund will further expand access to capital by purchasing 80 percent of all eligible working capital loans, helping CDFIs increase their lending capacity and bring more to underserved communities. Allow financing to be provided. To date, this fund has been used to purchase $2.9 million in qualified loans. For more information on eligibility requirements and to pre-register, please visit: https://njcapitalaccessfund.com.
In May 2023, NJEDA announced Calvert Impact will manage the New Jersey Capital Access Fund and leverage the department's $50 million investment and State Small Business Credit Initiative (SSBCI) funds. Calvert Impact is a nonprofit investment firm that has supported community and economic development organizations for nearly 30 years with a focus on financing sectors overlooked by mainstream capital markets.
“At Calvert Impact, we understand that supporting small business owners is key to sustainable and equitable economic growth. We are excited to see how committed they are to enriching our community.” Joe Meginnes, strategic director at Calvert Impact, said: “And with the recent launch of a technical assistance portal where entrepreneurs can apply for financing and, once received, receive support to most effectively deploy their funds, we hope that momentum will continue to grow. ”
female management blue sky potteryThe Long Branch and Hoboken-based New Jersey Capital Access Fund was used to obtain financing through CDFI partners. Ascendas. Blue Skies Pottery offers courses, classes, and memberships for those interested in creative pursuits.
“Having a positive impact on the community has been a core value of our pottery studio since we opened in 2022.” Valerie Danton, owner of Blue Skies Pottery, said:. “Thanks to Ascendas’ support, we are prioritizing partnership opportunities with local businesses, adding classes and staff for our growing special needs program, and providing need-based tuition to students and members who need support.” We were able to offer a fee option.
pink room shapewearis a minority and women-owned business located in Union and Elizabeth that received financing through: Pursuit, another New Jersey Capital Access Fund CDFI partner. The company is committed to improving lives by providing quality shapewear that provides comfort and safety.
“With so many opportunities available today, it's never been easier to find and leverage resources to grow your business and help your community and team grow together. ” said Maria Sparacio, owner of The Pink Room Shapewear. “Opportunities like this give women and minorities the ability to open doors and expand their businesses. Thank you NJEDA for making a difference and supporting us.”
Funding for the NJ Capital Access Fund will be allocated from $255 million in federal SSBCI capital allocated to New Jersey by the U.S. Treasury. NJEDA used his SSBCI funds to create six programs that provide financial assistance to New Jersey small businesses. Learn more about SSBCI-funded programs here. here.
For more information about NJEDA's small business assistance programs, please visit: https://www.njeda.gov/smallbusinessservices/.
About NJEDA
The New Jersey Economic Development Authority (NJEDA) serves as the state's primary agency for promoting economic growth. NJEDA focuses on critical strategies to build strong, dynamic communities, create good jobs for New Jerseyans, and provide a path to a stronger, more just economy. We are committed to making the country a national model for sustainable economic development. Through partnerships with diverse stakeholders, NJEDA develops and implements initiatives that improve the state's economic vitality and quality of life and strengthen New Jersey's long-term economic competitiveness.
For more information about NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit: https://www.njeda.gov Follow @NewJerseyEDA Facebook, twitter, Instagramand linkedin.
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