NJEDA names managers for $255M in federal SSBCI funds

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:

• The $50 million Blended Capital Fund, which co-invests SSBCI funds in an investment vehicle that supports the purchase of eligible loans from Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs);
• The $60 million Life Science/Health Care Fund, which supports early-stage New Jersey life science and health care businesses; and
• The $20 million Socially & Economically Disadvantaged Individuals (SEDI) Seed Fund, which will support seed and early-stage startups substantially located in New Jersey.

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:

• Calvert Impact, which will leverage and utilize the investment in the Blended Capital Fund to create and administer an NJ Loan Participation program to support state-based small businesses with working capital loans.
• Three firms – Signet Healthcare Management LLC ($12.5 million), Summit-based Tech Council Ventures LLC ($7.5 million) and Princeton-based Syridex Bio LLC (up to $5 million) – will manage portions of the Life Science/Health Care Fund.
• Include Venture Partners LLC (up to $15 million) and Gener8tor Management LLC (up to $5 million) will manage the SEDI Fund.

“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.