New Jersey Community Development Financial Institutions (CDFIs) can now apply for funding from the New Jersey Economic Development Authority’s (NJEDA) new CDFI Initiative. Developed as part of Gov. Phil Murphy’s plan to build a stronger, fairer New Jersey economy by supporting small businesses, the NJEDA is making a total of $15 million available to CDFIs that will expand the capacity of these organizations to provide financing and support to small businesses in the Garden State.
“Helping a small business succeed provides an immediate, tangible economic impact on a community, which is why building a stronger and fairer economy starts with connecting small businesses to the resources they need to grow,” said NJEDA Chief Executive Officer Tim Sullivan. “CDFIs are crucial to small businesses that are just getting started because they can lend to businesses that are not yet ready for bank financing, and the CDFI Initiative will enhance the ability of CDFIs to provide micro-enterprises and main street small businesses with the capital they need to thrive.”
The CDFI Initiative, which was first announced in July 2019, is the direct result of feedback the NJEDA has received from CDFI leaders and other organizations that support small businesses in New Jersey. It helps CDFIs assist more small businesses in two ways:
“The NJEDA frequently hears from small business owners who are ready to expand but may not yet qualify for financing from traditional banks,” said NJEDA Director of Small Business Services Christina Fuentes. “The CDFI Initiative will help address this challenge by providing low cost funding to various community-based lending organizations who will then create lending products small business owners can utilize in order to grow and prosper.”
Community Development Financial Institutions interested in participating in the CDFI Initiative can learn more via the following links.
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