Over 100 small businesses and nonprofits have been approved for more than $8.6 million in working capital loans under the NJ Capital Access Fund, according to a recent announcement from the New Jersey Economic Development Authority.
Supported by the State Small Business Credit Initiative (SSBCI) and a private capital match, the $100 million fund, administered by fund manager Calvert Impact, leverages Community Development Financial Institutions (CDFIs) and Minority Deposit Institutions (MDIs) to offer an affordable and flexible working capital loan product and technical assistance to assist small businesses and nonprofits.
“Under Governor Murphy’s leadership, New Jersey has prioritized expanding access to capital for small businesses, fueling business growth and revitalizing downtowns and commercial districts across the state,” NJEDA Chief Executive Officer Tim Sullivan said. “The NJ Capital Access Fund plays a key role in NJEDA’s comprehensive range of small business support programs, offering a streamlined pathway for entrepreneurs to secure the funding necessary for growth in the Garden State.”
Through the NJ Capital Access Fund, small businesses and nonprofits can receive working capital loans of up to $250,000 to assist with rent, utilities, payroll, marketing, and other operational business expenses.
The working capital loans offer flexible features, including terms from 36 to 60 months, low fees for borrowers, fixed competitive interest rates, and no specific collateral requirements. SSBCI funds are used to purchase up to 80 percent of every eligible working capital loan administered by participating community lenders, which increases lending capacity and provides more loans to underserved communities.
“The Capital Access Fund provides critical, flexible financing that small businesses need to thrive,” Joe Meginnes, director of Calvert Impact’s Access Small Business Program said. “We’re proud to partner with New Jersey to demonstrate that increasing the capacity of community lenders can be a powerful catalyst for broader economic growth and community development.”
NJ Capital Access Fund is one of the many resourceful financing tools that the NJEDA has to offer small businesses and nonprofits. For decades, NJEDA has deployed a range of loan products, including participations, guarantees, and direct loans, to help New Jersey-based businesses grow and thrive.
The Small Business Fund provides flexible, low-cost financial assistance of up to $500,000 to small businesses and nonprofits. To date, the program has supported over 60 loans totaling more than $17 million.
The Direct Loan Program is designed to expand access to capital and fuel business growth through direct NJEDA financing. The program has provided over 680 loans, delivering more than $273 million in support to small businesses across the state.
