Which NJEDA loan fits your business
The Main Street Micro Business Loan and the NJ Capital Access Fund are closed [9][10]. Start with size and age. A business open one to two years that needs under $500,000 points to the Small Business Fund, the only core program that takes a single full year of history, with revenue capped at $3 million [2]. A business with two years behind it and a bank relationship should ask its bank about the Premier Lender Program first, because NJEDA joins the bank's loan rather than replacing it. Its total exposure on one Premier Lender deal is capped at $2,750,000 for fixed asset loans and $2,250,000 for working capital loans [4]. Direct Loans are for when "conventional financing is not available" [3]. NJ LEND covers the large end, from just over $2 million up to $5 million [5].
| Your situation | Look at first | Why |
|---|---|---|
| 1 to 2 years open, need up to $500,000 | Small Business Fund | Only core loan that needs just one year [2] |
| Your bank likes you but wants less risk | Premier Lender Program | NJEDA takes up to 50% of the bank loan [4] |
| Banks said no, you have collateral | Direct Loans | Made when conventional financing is not available [3] |
| Buying a building or big equipment over $2 million | NJ LEND | Up to $5 million, up to 30 years on real estate [5] |
| Solar, efficiency or other clean energy project | NJ CELs | Co-lends on $500,000 to $20 million projects [6] |
How NJEDA prices its loans, with today's benchmark
Direct Loans, the Small Business Fund and the Premier Lender participation all use the same formula: the 5-year U.S. Treasury rate or a 1% floor, whichever is higher, "with basis point additions for credit risk" [2][3][4]. NJEDA does not publish the spread, so you only learn your full rate in a term sheet. What you can know now is the base: the 5-year Treasury yield was 4.94% on Oct 19, 2026 [12]. Your rate starts there and goes up by your credit spread.
Fees are flat and published, which makes them easy to put in dollars. On a $300,000 Small Business Fund loan, the 0.5% closing fee and 0.5% commitment fee come to $3,000, plus the $300 application fee, for $3,300 in total [2]. On a $1 million Direct Loan, the two 0.875% fees come to $17,500, plus $1,000 to apply [3]. All of these fees are non-refundable, so apply only when you meet the listed criteria [2][3].
Put the fees next to the rate
A fee of 1% to 1.75% of the loan, spread over a five to ten year term, adds little to the yearly cost. A shorter, higher-rate private loan can cost far more in total. Run both through the translator on this page or the loan payment calculator before you decide.
The four NJEDA rules that most often stop an application
- The job commitment. Direct Loans, Premier Lender and NJ LEND require you to keep or create one full-time job for every $65,000 of NJEDA exposure within two years [3][4][5]. A $650,000 NJEDA share means 10 jobs kept or added.
- Fixed assets. Every core program asks you to "provide fixed assets (e.g. real property and machinery/equipment)" [2][3]. Premier Lender adds a cap of 100% loan-to-value on real estate and 90% on equipment [4].
- Debt service coverage. Your cash flow must cover payments 1.1 times for Direct Loans, Premier Lender and NJ LEND, and 1.0 times for the Small Business Fund [2][3][4][5].
- No home-based businesses. All four core programs say home-based businesses are ineligible [2][3][4][5].
NJ LEND adds two personal rules: at least half of the personal guarantors need a FICO score of 700 or more, and every owner with 10% or more must sign an unlimited guarantee [5]. Every program also needs a current Tax Clearance Certificate before closing, and NJEDA says it will not close without one [3].
How long you get to repay, by program
| Program | Real estate | Equipment | Working capital |
|---|---|---|---|
| Direct Loans | 20 years | 10 years new, 5 years used | 5 years [3] |
| NJ LEND | 30 years | 10 years | 7 years [5] |
| NJ LEAF | Owner-occupied real estate and equipment | Included in fixed assets | $100,000 to $500,000 [7] |
| Bond Financing | 20 years | 10 years | Not offered [13] |
NJ LEND equipment loans exclude "rolling stock and soft costs", so trucks and vans need another source [5]. For larger manufacturers and 501(c)(3) nonprofits, Bond Financing offers $500,000 to $10 million in tax-exempt bonds for for-profit companies, with no dollar limit for qualified nonprofits [13].
The NJEDA loans that closed, and where their borrowers go now
Two small-dollar programs that owners still search for are closed. The Main Street Micro Business Loan is fully subscribed and NJEDA is "no longer accepting new applications" [9]. The NJ Capital Access Fund is "not accepting new loan applications at this time" and points businesses to businessbanking@njeda.gov for alternatives [10]. The Premier CDFI Program also closed [11].
If you need under $100,000, see our page on micro business loan alternatives, which lists the community lenders still making 5% microloans with NJEDA money. If you need more and have the history, the SBA loans in New Jersey page shows the federal option most NJ banks use.
To talk to NJEDA directly, each program page has a "Submit Financing Interest Form" button and a county-by-county list of NJEDA business banking representatives [3]. Business Funders is not part of NJEDA and does not process NJEDA applications.