NJEDA, Local Institutions to Provide Over $20M in Financing to Small Businesses Impacted by COVID-19
TRENTON, N.J. — The New Jersey Economic Development Authority (NJEDA) has partnered with six community development financial institutions (CDFIs) to provide between $20 million and $30 million in low-cost financing to small businesses and nonprofits impacted by COVID-19. The CDFI Emergency Loan Loss Reserve Fund is a $10 million capital reserve fund that the NJEDA will use to take a first loss position on COVID-related loans that provide low-interest working capital to small businesses that have been negatively impacted by the outbreak. The NJEDA will back these loans up to 50 percent if they default in the future. Institutions including New Jersey Community Capital, UCEDC, Regional Business Assistance Corporate, Cooperative Business Assistance Corp., Greater Newark Enterprise Corp. and 1st Bergen Federal Credit Union will all participate in the CDFI Emergency Loan Loss Reserve Fund.