| Photo by Austin Distel on Unsplash
TRENTON, NJ – Applications for the New Jersey Entrepreneur Support Program, launched in 2020 to help Garden State entrepreneurs navigate COVID-19 related cashflow constraints and re-launched in 2023, are still accepted, the New Jersey Economic Development Authority (NJEDA) has announced. The $5 million program encourages investors to provide additional funding to businesses by providing an NJEDA guarantee on loans advanced for working capital purposes.
According to estimates from PitchBook, venture capital and angel investment activity has declined since 2021, with a 40 percent reduction in the number of companies receiving investment and a 50 percent decrease in investment funding. To respond to declining investment activity and unsteady market conditions, especially in the life sciences sector, the NJEDA aims to boost investor confidence in New Jersey companies and increase access to capital for founders through the Entrepreneur Support Program.
“Increased investment into New Jersey companies is essential to supporting Governor Phil Murphy’s vision of bolstering the Garden State’s longstanding leadership in innovation,” said NJEDA Chief Executive Officer Tim Sullivan. “Especially in industries like biotechnology, the New Jersey Entrepreneur Support Program provides a unique solution to assist New Jersey companies in their financing endeavors when opportunities for private investment are not available.”
The NJ Entrepreneur Support Program provides investors a one-year guarantee of up to 80 percent on a convertible note or bridge loan to a qualifying company. Multiple notes or loans to a qualified company can receive guarantees up to a maximum of $400,000 per company. To qualify for the program, a company must have an office in New Jersey with a minimum of 50 percent of employees in the state, have fewer than 225 employees, and be a part of at least one NJEDA-targeted industry.
For a complete list of targeted industries, click here. Qualified investors under the program must be independent of the company, and the proposed investment must not mature for at least one year, cannot require payment for at least a year, and must be unsecured.
For a complete list of eligibility requirements and further information on the program, visit https://www.njeda.gov/njesp/.
–With Jay Domingo/PDM
