There’s a strong possibility that NJEDA’S popular Microbusiness Loan program will open a new round to applicants this spring, according to our rumor-mill source. This is NJEDA’s most competitive program–the application portal for it will close as ‘oversubscribed’ 2-3 hours after opening.
It’s not hard to see why this loan is so popular: The $50,000 lump sum loan is awarded at 2% interest, with no payments the first year and eligibiliy for loan forgiveness after five years of steady repayments. And since NJEDA acknowledges the only mechanism they have for seeing how the money is spent is ‘self-reporting’ (and they’ll check your tax returns), the spread between the 2% interest you’re paying and, say, a commercial CD savings account at 5% must be tempting (note: we do not condone nor encourage any misuse of funds).
Just remember that, unlike the ‘non-competitive’ programs offered by NJEDA, in which every approved applicant will be awarded a grant, the Microbusiness Loan is more like a death-match–you are racing both against the clock and against other applicants. So preparation is key.
To learn more about this and other State, County, and Local business support programs, check out JerseyGrants.com or join a webinar on this topic the first Tuesday of each month at 7pm, starting February 2025.
WEBINAR DETAILS & REGISTRATION
