Provided 42 small business loans totaling more than $3 million under NJEDA’s NJ Capital Access Fund

52% of loans were approved for small businesses and nonprofits owned by women and minorities

TRENTON, NJ (May 3, 2024) – In honor of National Small Business Week (April 28 – May 4), the New Jersey Economic Development Authority (NJEDA) announced today that more than $3.6 million in working capital loans have been approved under the NJ Capital Access Fundsince the program launched in November 2023. Managed by a designated fund manager Calvert impactthe $100 million fund, supported by the State Small Business Credit Initiative (SSBCI) program and a private capital match, leverages Community Development Financial Institutions (CDFIs) and Minority Deposit Institutions (MDIs) to provide technical assistance and an affordable and flexible working capital loan product to assist small businesses and nonprofits with payroll, rent, utilities, and other operating business expenses.

In line with NJEDA’s commitment to supporting diverse entrepreneurs and creating an equitable economy, 52 percent of the program’s loans were approved for women- and minority-owned small businesses and nonprofits, and 72 percent of the total financing supported by entrepreneurs identified as social and social. Economically Disadvantaged Individuals (SEDI).

“Under the leadership of Governor Phil Murphy, New Jersey remains committed to supporting small business growth by providing entrepreneurs and small business owners with greater access to capital and resources. Through our suite of small business assistance programs, NJEDA helps expand economic opportunity, promote business growth, and ensure the longevity and increased vitality of New Jersey’s Main Streets,” said NJEDA CEO Tim Sullivan. “The milestone announced today demonstrates how the NJ Capital Access Fund provides a streamlined path to small business loans, allowing them to continue to grow and thrive in the Garden State.”

Using a technology platform from the Community Reinvestment Fund, USAthe NJ Capital Access Fund is currently working with the NJ Small Business Development Center and four CDFIs that provide technical assistance and working capital loans of up to $250,000 to small businesses and nonprofits that have been in business for at least 12 months, have revenue of $10 million or less and fewer than 50 employees. Participating CDFIs include Renaissance Economic Development Corporation, Ascension Day, Grow AmericaAnd Pursue. Working capital loans managed by each participating CDFI offer flexible features including terms from 36 to 60 months, low fees for borrowers, fixed competitive interest rates and no specific collateral requirements. The NJ Capital Access Fund further expands access to capital by purchasing 80 percent of all eligible working capital loans, allowing CDFIs to expand lending capacity and make more loans to underserved communities. To date, the fund has been used to purchase $2.9 million in eligible loans. For more information about eligibility requirements and to pre-register, visit https://njcapitalaccessfund.com.

In May 2023, the NJEDA announced that Calvert Impact would manage the NJ Capital Access Fund, utilizing the Authority’s $50 million investment and matching it with funding from the State Small Business Credit Initiative (SSBCI). Calvert Impact is a nonprofit investment firm that has supported community and economic development organizations for nearly thirty years, with a focus on financing sectors overlooked by mainstream capital markets.

“Calvert Impact knows that supporting small business owners is the key to sustainable and equitable economic growth. We are thrilled to see how eager New Jersey entrepreneurs are to put capital to work, grow their businesses and enrich their communities,” says Joe Meginnes, director of strategy at Calvert Impact. “And we expect this momentum to increase further with the recent launch of the Technical Assistance Portal, where entrepreneurs can get help applying for a loan and using the funds most effectively once they receive one.”

Owned by women Blue skies potterywith locations in Long Branch and Hoboken, leveraged the New Jersey Capital Access Fund to receive a loan through CDFI partner Ascension Day. Blue Skies Pottery offers courses, classes and memberships for anyone interested in a creative outlet.

“Making a positive impact on our community has been a core value of our pottery since we opened in 2022,” said Blue Skies Pottery owner Valerie Dantone. “Thanks to Ascendus’ help, we have been able to prioritize partnership opportunities with local businesses, add more classes and staff for our growing special needs program, and provide need-based tuition options to our students and members in need of support. ”

The pink room shapeweara minority and women-owned business venture based in Union and Elizabeth received a loan through Pursue, another CDFI partner of the New Jersey Capital Access Fund. The company is committed to improving lives by offering high-quality shapewear clothing that provides comfort and safety.

“With all the different options we have today, it has never been easier to find resources and use them to grow our business, allowing our community and team to grow with us,” said The Pink Room Shapewear owner Maria Sparacio. “Opportunities like these open doors for women and minorities in business, giving them the opportunity to expand. Thank you to the NJEDA for making a difference and supporting us.”

Funding for the NJ Capital Access Fund is allocated from $255 million in federal SSBCI capital allocated to the State of New Jersey by the U.S. Department of the Treasury. The NJEDA used the SSBCI funding to create six programs that provide financial assistance to small and micro businesses in New Jersey. Learn more about SSBCI-funded programs here.

For more information about NJEDA’s small business assistance programs, visit https://www.njeda.gov/smallbusinessservices/.

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the state’s primary agency for stimulating economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a broad range of stakeholders, NJEDA creates and implements initiatives to increase economic vitality and quality of life in the state and strengthen New Jersey’s long-term economic competitiveness.

For more information about NJEDA resources for businesses, call NJEDA Customer Service at 844-965-1125 or https://www.njeda.gov and follow @NewJerseyEDA Facebook, Tweet, InstagramAnd LinkedIn.

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