TRENTON – The Economic Development Authority on Tuesday approved the creation of the New Jersey Advantage pilot program to provide loans to qualifying businesses.
TD Bank will provide $20 million in financing to companies in the state and the authority will reserve funds to provide up to $10 million in partial guarantees.
The pilot program will last for three years and will be reviewed annually, but either party could terminate the agreement with 30 days notice.
The bank loans to companies could be as high as $5 million and the authority could provide a guarantee of up to 50 percent of the loan, the application states.
According to the application the “New Jersey Advantage Program would enable the author for the first time (to) offer subordinate guarantees on term loans and lines of credit on a pilot basis.”
The EDA cited its strong relationship with the bank as reason to enter into the program
“Based on our experience with TD relating to both their underwriting and portfolio management, and their commitment to provide capital to the business community, the authority is comfortable with establishing this affinity program on a pilot basis to be reviewed and renewed annually,” an EDA memo states.