NJ EDA Opens Applications for New CDFI Program

The NJ Economic Development Authority (EDA) announced it has opened up applications for funding from a newly created $15 million program aimed at helping Community Development Financial Institutions (CDFI) assist local businesses.

Under the CDFI program, the EDA will provide the funds to local banks, credit unions and other financial institutions to facilitate financing for small businesses looking to set up shop or expand their footprint in the state.

One facet – the CDFI Loans to Lenders Program – provides loans of up to $1.5 million to financial institutions with a “demonstrated lending and portfolio management” track record.  The institutions will administer the terms of the loans and lines of credit for the businesses to which they lend.

The second part is the Premier CDFI Program, in which the EDA guarantees up to $500,000 against loans and other lines of credit that the local institutions would offer, thereby reducing the associated risks.