Trenton, NJ — As the New Jersey Economic Development Authority (EDA) continues its efforts to raise awareness of State resources available to small businesses and not-for-profit entities, organizations across New Jersey are realizing the benefits of EDA programs. Espinosa Beef and Provisions Inc. in Hudson County, C&A Marketing in Middlesex County, and Millville Rescue Squad in Cumberland County are all investing and expanding in New Jersey with support from these programs.
“It’s encouraging to see such a diverse group of businesses recognizing benefits of financing options offered by the State,” said EDA Chief Executive Officer Melissa Orsen. “Small businesses and not-for-profits create jobs and provide valuable resources to our residents and communities.”
Espinosa Beef and Provisions, located in Union City, wholesales fresh meats to commercial clients in Hudson County and New York City. With the support of a direct loan from the EDA’s Small Business Fund, the company recently purchased the facility it had been leasing since the company was founded in 1975. Freehold-based USA Funding helped Luis Rabelo, President, Espinosa Beef and Provisions identify his company’s financing needs and facilitated the connection with the EDA. USA Funding is a team of accountants that specialize in SBA, EDA and commercial loans for clients located throughout New Jersey.
“This location, here in the heart of our customer base, has served my family’s business well for more than 40 years,” said Rabelo. “Purchasing this facility makes sense both financially and in terms of our commitment to our longstanding customers and the local community.”
The EDA’s Small Business Fund features an expedited approval process and provides up to $500,000 in low-cost financing to qualified businesses and not-for-profits through direct loans, participations or guarantees with a fixed interest rate. The program requires that a business be in operation for at least one full year. Not-for-profit corporations that have been operating for at least three full years may also be eligible. Funds can be used for fixed assets or working capital.
C&A Marketing, a wholesale importer and distributor of cameras and accessories since 2003, with retail stores throughout the U.S. and a vibrant Internet presence, was approved for a TD Bank loan with a 20 percent EDA participation to support acquisition of a building in Edison.
TD Bank is part of the EDA’s Premier Lender program, which was created to be more responsive to the needs of businesses and bank partners. The program offers low-cost financing with quick turnaround time from approval to closing, while the EDA’s exposure by participating in or guaranteeing a portion of a loan reduces the lender’s risk. Businesses can use this financing for fixed assets, working capital to meet operating needs, and/or the refinancing of other bank debt.
A renewal of a Susquehanna Bank line of credit with a 28 percent EDA guarantee was recently approved for Millville Rescue Squad, a not-for-profit that provides both emergency and non-emergency medical transportation and rescue services to its community. With more than 200 trained personnel and volunteers, Millville Rescue Squad is one of the largest rescue squads in South Jersey. Susquehanna Bank, a Premier Lender, first provided the line of credit for working capital in 2012, along with a commercial mortgage with a 20 percent EDA guarantee.
The EDA regularly partners with financial institutions, local organizations and other State agencies to help borrowers bridge financing gaps and increase their access to capital. This includes offering low-interest loans, bond financing, and support for micro-lenders to increase their lending capacity and the technical assistance and training services they offer. In 2015 alone, the EDA supported over 250 projects with more than $443.5 million in assistance, leveraging an estimated $669 million in total public/private investment and the creation of more than 1,400 new jobs across the State.
“We encourage business owners to contact us to learn more about how the State can support their growth,” said Orsen. “From low interest loans either directly or through one of EDA’s lending partners to training and technical assistance services to support the expansion and long-term growth of small businesses and not-for-profit organizations, we are positioned to help businesses in all stages grow.”
The EDA is part of the State’s results-driven Partnership for Action. Created by Governor Christie and led by Lt. Governor Guadagno, the Partnership is the hub for all economic development activity in New Jersey and is comprised of four interconnected and highly focused organizational elements: Choose New Jersey, the Business Action Center, the Office of the Secretary of Higher Education and the EDA.
To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov or call the Business Action Center at (866) 534-7789.