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The New Jersey Economic Development Authority (NJEDA) announced the opening of the $100 million NJ Capital Access Fund late Tuesday afternoon, aimed at providing working capital loans with competitive interest rates to help support New Jersey small businesses.

Last December, the U.S. Department of Treasury approved New Jersey’s federal State Small Business Credit Initiative (SSBCI) application, awarding the NJEDA $255 million to create programs that will provide financial and technical assistance to small and micro businesses as well as early-stage, innovation-focused companies located here in the Garden State.

In May, the NJEDA announced it approved several firms to manage those resources as well as the creation of several funds to distribute it. The Nov. 28 announcement marks the next step in the process.

The NJEDA says that the NJ Capital Access Fund will leverage Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs). It will be funded by $50 million from those federal SSBCI dollars awarded to the NJEDA. Calvert Impact, the designated fund manager, will match and utilize that investment for a $100 million fund.

Nonprofit Calvert Impact of Bethesda, Md., has a nearly three-decade-long track record of supporting community and economic development organizations — including more than 231,000 small businesses in 2022.

NJEDA says it designed the fund to help small businesses and nonprofits by leveraging a technology platform through the Community Reinvestment Fund, USA.

The funds, along with the raised private capital, will be used to purchase up to 80% of every eligible loan by participating community lenders. Working alongside six CDFI partners, businesses that have been operating for at least 12 months with a revenue of $10 million or less and fewer than 50 employees will be eligible for working capital loans up to $250,000 offering flexible features, such as no minimum credit score or collateral requirements, terms from 36 to 60 months, low borrowing fees, and competitive fixed interest rates.

NJEDA Chief Executive Officer Tim Sullivan says the fund serves as a testament to the Murphy administration’s unwavering commitment to supporting New Jersey small businesses — increasing access to much-needed capital as businesses face a credit crunch and inflationary pressures in this post-pandemic period.

“This program, which is being administered by Calvert Impact on behalf of the NJEDA, will bolster community lending infrastructure and provide a streamlined path for small businesses in need of loans, helping revitalize a core component of our state’s diverse economy,” said Sullivan.

“Small businesses across New Jersey deserve access to capital to support their continued growth,” said Beth Bafford, Calvert Impact’s vice president of strategy. “We are excited to partner with NJEDA and our CDFI partners to bring this innovative public-private partnership to New Jersey’s smallest businesses, which are vital to the character of their communities and the vibrancy of their local economies.”

More details on the NJ Capital Access Fund as well as eligibility requirements and pre-applications can be found here.