NJEDA approves $11M in grants to fund micro businesses

Matthew Fazelpoor//November 1, 2022//

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The New Jersey Economic Development Authority (NJEDA) announced Nov. 1 that it approved $11 million through its Main Street Lenders Grant.

The program, which launched over the summer, awards grants to eligible Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), and other entities that have at least 10 years of experience lending to small and micro businesses. It is funded with $15 million from the Main Street Recovery Program and offers eligible lenders grants of up to $1.5 million each, with up to $500,000 reserved for technical assistance needs.

Those lenders then provide flexible and low-cost financing through working capital term loans and technical assistance to qualified micro businesses.

The NJEDA approved the funding to eight lenders and financial institutions, including: Elizabeth Development Co. of New Jersey, Pursuit Lending, Union County Economic Development Corp. (UCEDC), The Enterprise Center Capital Corp., Eastern American Certified Development Co., Greater Newark Enterprises Corp., Cooperative Business Assistance Corp. (CBAC), and Regional Business Assistance Corp.

Tim Sullivan, far right, attends Gov. Phil Murphy's signing of an executive order more than doubling New Jersey's offshore wind goal on Nov, 19, 2019 at Liberty Science Center in Jersey City. (Edwin J. Torres/Governor's Office) — Sullivan

“The Main Street Lenders Grant is another testament to Gov. Phil Murphy’s commitment to equity and inclusion and supporting small businesses to ensure economic prosperity in New Jersey,” said NJEDA Chief Executive Officer Tim Sullivan. “Forty percent of the funding to support loans will be set aside for micro businesses in Opportunity Zone-eligible census tracts, allowing underserved areas the chance for continued growth.”

Micro businesses can apply for financing by directly contacting and applying to the aforementioned lenders.

NJEDA Program Manager for Business Banking Naimah Marshall said that local lenders were paramount for being able to reach and support New Jersey small businesses during the pandemic.

“And they remain vital partners in our efforts to build a stronger, fairer, and more equitable economy,” said Marshall. “Through the Main Street Lenders Grant, we are enhancing our ability to connect micro businesses that often have difficulty accessing financing with the resources they need to succeed.”