What the Main Street Micro Business Loan offered, and why it closed
The program lent up to $50,000 to New Jersey micro businesses with 10 or fewer full-time employees and no more than $1.5 million in yearly revenue [1]. It was the successor to a micro loan NJEDA first ran in 2019, and it opened on the NJEDA Application Center on Oct 6, 2022 [1].
| Term | What it was |
|---|---|
| Rate and term | 2% for 10 years, with no interest and no payments in year one |
| Money set aside | $20 million from the Main Street Recovery Fund, with $8 million reserved for Opportunity Zone eligible tracts |
| Minimum credit | A score of at least 600 from at least one owner |
| Business age | Formed at least six months before applying |
| Fees | $100 application fee (non-refundable) and $400 closing fee |
| Not allowed | Refinancing debt, construction, vehicles, and equipment needing more than $1,999.99 of installation |
The page now says the loan is "fully subscribed" and that, because the $100 application fee is non-refundable, "the NJEDA is no longer accepting new applications" [1]. NJEDA lists it on its Inactive Programs page [6]. There is no announced reopening date, so plan as if it will not return soon.
The seven NJEDA partner lenders still making microloans
Through the Main Street Lenders Grant, NJEDA gave community lenders up to $1 million each to lend, plus up to $500,000 for technical help [2]. You apply to the lender, not to NJEDA. NJEDA's list, dated February 2026 and posted in June 2026, names these lenders and products [3]:
| Lender | Loan size | Who it serves |
|---|---|---|
| Ascendus | $10,000 to $100,000; up to 6 years; 5% | New Jersey micro businesses |
| Renaissance Economic Development Corp. | $10,000 to $50,000; 60 months; 5% fixed | 13 counties: Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Passaic, Somerset, Sussex, Union, Warren |
| Grow America | $10,000 to $100,000; rate not above 5% | New Jersey micro businesses |
| TruFund Financial Services | $10,000 to $100,000 | For-profits and nonprofits in low- to moderate-income areas or employing LMI workers |
| Cumberland Empowerment Zone | $10,000 to $25,000 without collateral; $25,001 to $100,000 with collateral | Cumberland County |
| Invest Newark | $10,000 to $100,000 | Home-based, nonprofit, sole proprietor and startup businesses with a commercial location in Newark |
| Carver Federal Savings Bank | $10,000 to $50,000 | Businesses with a commercial or home-based location in New Jersey |
Every loan made with this money must follow NJEDA's rules: no balloon payment, a lender fee of no more than 1% of the loan, no prepayment penalty, and a credit score floor set under 650 [2]. Lenders decide for themselves whether to ask for collateral or a personal guarantee [2]. Forty percent of each lender's NJEDA-funded loans must go to businesses in Opportunity Zone eligible tracts, so owners in those areas may find the money moves faster [2].
What the gap between 2% and 5% costs on a real loan
Rates feel abstract, so here is the difference in dollars. These are our own calculations with standard loan math, assuming equal monthly payments after the payment break and no fees. They are illustrations, not offers.
| Rate | Monthly payment | Total interest |
|---|---|---|
| 2% (the closed NJEDA loan) | About $253 | About $2,300 |
| 5% (partner lender cap) | About $288 | About $6,100 |
| 10% (inside the SBA microloan range) | About $352 | About $13,000 |
The partner loan costs about $3,800 more in interest than the closed program on this example. That is real money, but it is spread over nine years, and it is a fraction of what a short-term product would cost for the same $25,000. Use the loan payment calculator to run your own amount and term.
Other small-loan options for New Jersey micro businesses
SBA microloans go up to $50,000 through nonprofit intermediaries, the SBA says the average is about $13,000, and the maximum term is seven years [4]. The intermediary makes the credit decision and sets the rate [4].
NJEDA also lists community development financial institutions (CDFIs) that lend in the state: CBAC in Camden, BOC Capital, Greater Newark Enterprises Corporation, New Jersey Community Capital, Pursuit Lending, Regional Business Assistance Corporation, Renaissance and UCEDC [7]. NJEDA describes BOC Capital as having "a special focus on women, minority, and immigrant entrepreneurs" [7].
Banks make small SBA loans too. In SBA's public loan file, 1,923 of the 6,793 SBA 7(a) loans approved for New Jersey projects from Oct 2023 through June 2026 were for $50,000 or less [8]. SBA Express loans, which go up to $500,000, let the lender skip collateral up to $50,000 [5]. See who made those loans.
Business Funders cannot submit applications to NJEDA or its partner lenders. Our quiz helps you see whether a microloan, an SBA loan or a faster private option fits, and our funding team (Batch Capital) can talk through private options if those are what fit.