Access to capital can make a significant difference for small businesses looking to grow, manage operating expenses, or invest in new opportunities. However, securing traditional financing isn’t always easy, particularly for smaller businesses.
The New Jersey Economic Development Authority (NJEDA) Main Street Lending Program offers another potential financing option for eligible New Jersey businesses, with loans ranging from $10,000 to $100,000.
Through a partnership with TEC Capital and The Enterprise Center of New Jersey, the program provides flexible lending options for business owners who need capital but may have difficulty accessing other financing opportunities.
Here’s what New Jersey business owners should know about the program.
Eligible businesses may qualify for loans with the following terms:
Loan Amounts: $10,000 to $100,000
Interest Rate: 5%
Repayment Period: Up to 10 years
Payment Moratorium: 12 months after closing
Credit Score: No minimum credit score requirement
Prepayment Penalty: None
Origination Fee: 1%
These terms are designed to provide small businesses with additional flexibility when accessing capital and planning for repayment.
The program is intended for smaller, for-profit businesses operating in New Jersey. To qualify, businesses must generally meet the following requirements:
Have fewer than 10 full-time employees.
Generate less than $1.5 million in annual revenue, based on the most recent federal tax return.
Operate as a for-profit business.
Maintain a commercial location in New Jersey. Home-based businesses may also qualify.
Have a current New Jersey Business Tax Clearance Certificate.
Meeting these requirements does not guarantee loan approval. Business owners should review the full program guidelines and confirm their eligibility before applying.
One of the program’s benefits is the flexibility in how approved funds can be used.
Eligible expenses include:
Equipment: Purchasing equipment needed to operate or expand the business.
Inventory: Maintaining or increasing inventory levels.
Payroll: Covering employee compensation and other eligible operating expenses.
Marketing: Investing in marketing efforts to reach new customers and grow the business.
Rent: Covering commercial rent and other qualifying operating costs.
There are some restrictions. Funds cannot be used to refinance existing debt or pay for construction or repair projects exceeding $1,999.99. Businesses holding or applying for a New Jersey cannabis license are also ineligible.
In addition to the Main Street Lending Program, TEC offers other financing options that may better align with a business’s needs, including:
Micro Loans: Up to $50,000.
Small Business Loans: $50,000 to $500,000.
TEC also provides business advisory services to help owners strengthen their financials, prepare loan applications, and make informed business decisions.
Before pursuing a loan, it’s important to understand your business’s financial position and how additional capital would support your goals.
Reviewing financial statements, evaluating cash flow, understanding existing obligations, and preparing accurate financial records can help you determine how much funding your business may need and whether the proposed repayment terms are manageable.
Having organized financial information can also help streamline the application process and put you in a better position to evaluate available financing opportunities.
Contact our office at (856) 667-4100 or reach out to your Alloy Silverstein advisor to discuss whether the NJEDA Main Street Lending Program may be a fit for your business. We can help you evaluate your business’s financial position, understand eligibility requirements, and determine whether additional planning or preparation may be needed before pursuing financing.
Having a clear picture of your business’s financials can help you make informed decisions about your next steps.
Empowering business owners and individuals in South Jersey and Philadelphia to feel confident through proactive accounting and advisory solutions.
