NJEDA Awards 7 New Lenders Under Main Street Grant Program

The New Jersey Economic Development Authority has awarded funding to seven new lenders under its Main Street Lenders Grant program, expanding the state’s push to get capital into the hands of small business owners who often can’t access traditional bank financing.

The NJEDA announced the new awards on March 23. Since the program launched, it has facilitated more than 250 loans totaling over $8.8 million and provided technical assistance to nearly 3,000 small businesses statewide.

The program awards eligible lenders grants of up to $1.5 million each, with up to $500,000 of that reserved for technical assistance. Approved lenders then use the money to make working capital loans directly to micro businesses, which the state defines as companies with fewer than 10 full-time employees and less than $1.5 million in annual revenue.

The loan terms are deliberately designed to be accessible. Interest rates are capped at 5%, there are no prepayment penalties, and borrowers do not have to make payments for at least the first 12 months after closing. Business owners can use the funds for a wide range of expenses, including equipment, payroll, inventory, marketing, rent, utilities, and property taxes.

NJEDA Chief Executive Officer Evan Weiss said access to capital remains one of the most persistent obstacles facing micro business owners, particularly those in economically disadvantaged communities.

“The Main Street Lenders Grant program reflects New Jersey’s ongoing commitment to small businesses and inclusive economic growth,” Weiss said. “Access to capital continues to be a barrier for many micro businesses but this program is helping ensure entrepreneurs have the resources needed to succeed, leading to greater job growth and economic activity, particularly in disadvantaged communities.”

Each of the seven newly funded lenders received $1.5 million and is now accepting micro business loan applications. Their programs vary in geographic focus, loan size, and eligibility requirements, giving businesses across the state multiple potential pathways to funding.

Ascendus, Inc. offers loans between $10,000 and $100,000 with terms up to six years at a 5% interest rate. Carver Federal Savings Bank, a minority-owned institution, offers loans ranging from $10,000 to $50,000 to businesses with a commercial or home-based location in New Jersey.

Cumberland Empowerment Zone Corporation focuses specifically on Cumberland County, one of the state’s most economically distressed regions. It offers loans between $10,000 and $25,000 with no collateral required, and loans from $25,001 to $100,000 with collateral.

Grow America offers loans between $10,000 and $100,000 with interest rates capped at 5%. Invest Newark targets home-based businesses, nonprofits, sole proprietors, and startups with a commercial location in Newark, offering loans from $10,000 to $100,000.

Renaissance Economic Development Corporation covers a broad swath of northern and central New Jersey, including Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Passaic, Somerset, Sussex, and Union counties. It offers 60-month loans between $10,000 and $50,000 at a fixed 5% rate.

Beyond financing, approved lenders are required to provide one-on-one advisory services, educational programming, and tailored support to help business owners understand their options and manage their finances.

That technical assistance component matters. Many micro business owners, particularly those who are first-generation entrepreneurs or operating in lower-income communities, have the drive to build something but lack the financial literacy or professional networks to navigate lending processes on their own. Pairing capital with coaching gives the money a better chance of actually sticking.

New Jersey’s small business economy is more diverse than its reputation as a pharma and finance state sometimes suggests. Across Hudson, Essex, Cumberland, and Camden counties, thousands of small retailers, food producers, contractors, and service providers employ local workers and anchor neighborhoods. Programs like Main Street Lenders are designed to reach that layer of the economy, the businesses that rarely make the financial press but collectively account for a significant share of the state’s jobs.

For New Jersey entrepreneurs who think they might qualify, the message from NJEDA is straightforward: the lenders are funded and ready to take applications now.