Emergency Loan Loss Reserve Fund

In response to the economic disruption caused by the COVID-19 outbreak the New Jersey Economic Development Authority (NJEDA) has created programs that allow the NJEDA to put its funds to work in ways that catalyze and leverage additional outside funding and operational capacity. One channel that the NJEDA is working through is the NJ-based Community Development Finance Institutions (CDFIs). By partnering with these organizations, the NJEDA is able to enhance their ability to provide assistance to micro and small business owners impacted by COVID-19.

The CDFI Emergency Loan Loss Reserve Fund is a $10 million capital reserve fund that the NJEDA will use to take a first loss position on CDFI COVID-related loans that provide low-interest working capital to microbusinesses that have been negatively impacted by the outbreak. The NJEDA will back these loans up to 50% if they default in the future. This will allow the CDFI partners to increase their capacity and participate in more loans, at flexible term and lower interest rates.

To see whether you might qualify for these programs, use the NJ COVID-19 Business Support Eligibility Wizard.

For more information about how this resource may be able to assist you in response to the COVID-19 crisis, please visit our website.