NJ Entrepreneur Support Program Provides Working Capital
Find out more on NJDEA funding
The New Jersey Economic Development Authority continues to provide funding support in 2024. The NJEDA is now accepting applications for NJ Entrepreneur Support Program is a $5 million program that provides a guarantee of an investor loan advanced for working capital to businesses. Completed applications from investors for guarantees will be considered on a first-come, first-served basis, including the ability to consider multiple guarantees per company towards the $400,000 company exposure cap.
The NJ Startup Business and the Investor must meet the program requirements as detailed below:
NJ Startup Business Requirements:
Minimum of 50% of employees in New Jersey, as reported on NJWR-30, Federal Form 941, PEO Letter, or other similar documentation, at application submission date
Fewer than 225 total employees at the time of application
A corporate headquarters in New Jersey (including at least one C suite member with a principal office in New Jersey)
Aligned with at least one of the NJEDA’s established targeted industries
A valid New Jersey tax clearance certificate from the Division of Taxation
Good standing with NJ Workforce Development (DOL) at time of application and at time of any payment events with all decisions of good standing at the discretion of the Commissioner of the Department of Labor
Investor / Investment Requirements:
Investors can include, but are not limited to, institutional investors, individuals, trusts, and corporations
A valid New Jersey tax clearance certificate from the Division of Taxation (if required)
Employees/founders are not eligible for the guarantee
Qualified investors are not required to be New Jersey residents
The bridge loan/convertible note must be dated March 10, 2023 or later, have a minimum of a one-year maturity, be unsecured, and cannot have any current payment requirements (principal or interest) in year one
In the event the investor converts the note, it may be eligible for the New Jersey’s Angel Investor Tax Credit Program if all program eligibility is met (20% or 25% based on program guidelines)
If the investor converts the note to equity, the Authority will be provided with a warrant for 20% of the guarantee amount, under the same pricing as the investor’s conversion pricing on the Authority’s standard warrant form
Investor loans must be used by New Jersey entrepreneurial companies for working capital.
80% guarantee of investment amount, not to exceed $400,000 per NJ Company for one year from the date of note issuance
The total funding pool for the program is $5 million, and completed applications from investors for guarantees will be considered on a first-come, first-served basis, including the ability to consider multiple guarantees per company towards the $400,000 company exposure cap.