The New Jersey Economic Development Authority (NJEDA) announced last week it approved several firms to manage $255 million in funds awarded to the state via the federal State Small Business Credit Initiative (SSBCI).
In December, the U.S. Department of Treasury approved New Jersey’s 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.
The SSBCI program is aimed at spurring lending and access to capital into small businesses, especially those that would not otherwise have access to funding.
“The federal funding awarded to New Jersey will help support small and early-stage businesses across the state and propel our economy forward,” said Gov. Phil Murphy.
Following that approval, the NJEDA announced the creation of three funds:
In February, the NJEDA issued Notices of Investment Opportunities (NIOs) seeking investment managers for each fund.
The NJEDA says the managers will be responsible for raising – or contributing to the raising of – private capital, managing the fund’s day-to-day operations, and developing and maintaining a pipeline of prospective, New Jersey-based small businesses that can benefit from the fund.
The investment managers for those three funds include:
“The investment managers we selected will be able to leverage their expertise and multiply the impact our dollars will have on businesses across the state,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello.
“Together, these three funds will help position New Jersey businesses for long-term growth and success,” said NJEDA Chief Executive Officer Tim Sullivan.
Sullivan said that the governor’s economic strategy has centered on connecting entrepreneurs and small business owners with capital in an equitable and inclusive manner, thanking New Jersey’s two U.S. Sens. Bob Menendez and Cory Booker, both Democrats, for their part in securing this federal funding.
“These three funds will provide small and early-stage businesses in New Jersey with the financial resources and support they need to fulfill their potential and realize their dreams while boosting the state’s economy,” said Menendez. “They will also ensure greater access to credit and capital for businesses across the State of New Jersey, including those located in underserved areas and led by diverse individuals.”
“These funds will spark growth and empower the ingenuity of New Jersey’s small businesses, which are the backbone of our economy and our communities,” said Booker.s