The state’s Economic Development Authority tapped software company Mobility Capital Finance Inc. to be the next participant of its NJ CoVest Fund incentive program, which the state uses to help prop up emerging technology companies.
MoCaFi will receive $250,000 of seed capital from the NJEDA, which under the program does not have to be repaid until year seven of the 10-year loan, with 3 percent yearly interest.
The approval comes as the NJEDA gauges how it can put more incentive dollars into black-and-Latino-owned businesses, and what exactly is keeping that capital from flowing to them.
“[T]he NJEDA is working hard to increase access to capital for emerging companies, with a particular focus on building an inclusive innovation ecosystem that reflects New Jersey’s diverse population,” Tim Sullivan, who heads the EDA, said in a Tuesday statement.
The company plans to use the dollars from the CoVest Fund toward developing low-cost banking services for lower-income residents, including a new debit card program, and a smartphone app.
“We started MoCaFi to be the community bank of the future and to provide low-cost, personalized financing to a population that has been overlooked for far too long,” Wole Coaxum, MoCaFi’s chief executive officer, said in a Tuesday statement from the EDA.
“The funding we’ll receive through NJ CoVest will be instrumental in enabling us to scale our business and expand our value to customers,” Coaxum added.
“Supporting minority-led companies like MoCaFi that focus specifically on serving underrepresented communities bolsters our work,” Sullivan said.