Small Business Loans
The Revolving Loan Fund (RLF)
(Gap Financing)
The South Jersey Economic Development District offers small business "gap" financing at below market rate through the Revolving Loan Fund (RLF).
Goals and Objectives
South Jersey Economic Development District’s loans gives businesses the financial incentives they need to create new capital investments, thus generating new tax revenues to improve the economic well-being of communities throughout the region.
Overview
The RLF Program is intended to provide gap financing for small business firms to encourage business expansion and retention. The minimum available to borrow is $10,000 and the maximum is $100,000. These low-interest loans provide up to 33 percent of the total eligible projects costs, with the maximum being $100,000 for fixed asset financing. RLF loans are subordinate to the Primary Lending institution.
Intermediary Relending Program
(Primary Loans)
The South Jersey Economic Development District offers small businesses primary financing at below market rate through the Intermediary Relending Program (IRP).
Goals and Objectives
The goal of the program is to provide financing to for-profit manufacturing, commercial, retail or service related businesses. IRP loans must be innovative in providing services and/or products for the public.
Overview
IRP loans can be made for up to 75% of the total eligible project cost with a maximum loan amount of $150,000. Loan applications must demonstrate sufficient equity participation in the project business and sufficient cash flow to support all debt service. All loans will be secured by lien position on collateral at the highest level or priority. The loan must be necessary to complete the financing package and may not supplant funding that is otherwise available expeditiously from other sources at commercially reasonable terms. There is a non-refundable $250 application and packaging fee at time of filing and a 1% origination fee payable at closing, associated with each loan. The borrower is also responsible for all closing costs and fees associated with servicing the loan.