New Jersey Enterpreneur - Small Business, Entrepreneurs and Venture Capital

TRENTON, N.J. (April 8, 2008) – The New Jersey Economic Development Authority (EDA) plans to lower interest rates on select lending programs in support of Governor Jon S. Corzine’s efforts to generate increased economic activity in the state. The EDA Board today at its regular monthly meeting took action to reduce interest rate floors by 100 basis points, equivalent to 1 percent, on several of its programs to meet the changing needs of the marketplace.

"The U.S. Federal Reserve recently announced cuts in interest rates to lower the cost of borrowing and to help speed economic activity," said EDA Chief Executive Officer Caren S. Franzini. "This action allows us to remain a competitive lender and effectively support Governor Corzine’s economic growth strategies." The EDA plans to adjust its rates downward on some programs to as low as 2 percent. Interest rate ceilings would not be altered.

The change would impact EDA financing assistance made under certain urban loan programs, as well as direct loans offered through the EDA with variable rates, which would see a new interest rate floor of 2 percent instead of the current 3 percent. Other small-business and brownfields lending programs, along with fixed interest rate direct loans, would carry new interest rate floors of 3 percent. They now have floors set at 4 percent interest.

To learn more about EDA products and services, visit www.njeda.comor contact EDA Customer Care at CustomerCare@njeda.comor (609) 777-4898. For more information about doing business in New Jersey, visit www.NewJerseyBusiness.govor call (866) 534-7789.

The EDA is an independent, self-sustaining state financing and development agency that works to promote economic growth, job creation and the revitalization of New Jersey’s communities with financing assistance, technical support and entrepreneurial training, and real estate development activities.