For over 30 years, small business ICF Mercantile has been operating as a distributor of fiber, yarn and fabrics for a broad range of industrial, textile and apparel challenges, including flame-retardant fiber and yarn, medical devices, and heat insulating materials for the aerospace industry.
Through the New Jersey Economic Development Authority’s (EDA’s) Premier Lender Program, a $600,000 loan from TD Bank, America’s Most Convenient Bank, which included a 50 percent EDA participation, is enabling ICF to finally shift its manufacturing operations from a foreign facility to the United States.
According to ICF Chief Executive Officer (CEO) David Ronner, the loan allowed for the acquisition of volume production equipment, enabling ICF to manufacture its products at its new, 17,660-square-foot facility in Warren. As a result of moving its manufacturing into New Jersey, ICF expects to more than double its staff of eight in the coming years.
“The funding provided by TD Bank and the EDA has been pivotal to our efforts to bring our manufacturing in-house, affording us greater control over production and creating skilled jobs here in New Jersey,” Ronner said. “Our new capabilities will enable us to be more efficient and more responsive to our clients.”
The EDA partners with Premier Lender banks to provide small businesses with low cost financing that includes EDA loan participations and/or guarantees, and line of credit guarantees. Businesses can use this financing for fixed assets or term working capital. The EDA’s ability to provide guarantees or participations for a portion of these loans helps to reduce risk for lenders, and improve a business’s chance of getting approved, or of receiving a larger amount of financing.
In partnership with its 25 Premier Lenders, EDA can provide up to a $2 million loan participation or $1.5 million loan guarantee for fixed assets, up to a $750,000 loan participation or $1.5 million loan guarantee for term working capital, and up to a $750,000 line of credit guarantee. The full list of eligibility requirements and Premier Lender banks can be found at www.njeda.com/premierlender.
“Supporting job creation and providing resources to help small companies thrive are at the core of the EDA’s mission,” EDA CEO Melissa Orsen said. “We are pleased that ICF has joined a mounting list of businesses that are establishing manufacturing operations in the United States instead of overseas, and we applaud the company’s commitment to growing and creating jobs in New Jersey.”
The EDA regularly partners with financial institutions, local organizations and other State agencies to help borrowers bridge financing gaps and increase their access to capital. This includes offering low-interest loans, bond financing, and support for micro-lenders to increase their lending capacity and the technical assistance and training services they offer.
“Our status as a Premier Lender enhances our ability to provide much-needed capital to New Jersey’s small and mid-sized businesses,” said TD Bank Market President Nick Miceli. “It’s a true ‘win-win’ – greater access to capital for businesses, and decreased risk for TD Bank.”Related Articles: