Saturday, September 3, 2011

NJ: Banks, State Team Up To Help Business Recover

New Jersey Governor Chris Christie and Lt. Governor Kim Guadagno have announced that the Board of the New Jersey Economic Development Authority (EDA) will review a temporary expansion of its Main Street Business Assistance Program on Tuesday, September 6, to support disaster recovery efforts. The Main Street Disaster Relief Program was specifically designed to ensure that New Jersey businesses impacted by Hurricane Irene have access to capital to improve their damaged property while awaiting insurance proceeds.

To support the recovery of New Jersey’s businesses and protect the overall economic interests of our state, Governor Christie and Lt. Governor Guadagno announced a series of business assistance services last week through the collective efforts of the Partnership for Action, which includes the Business Action Center (BAC), the EDA and Choose New Jersey, in addition to the Departments of Banking and Insurance, Community Affairs and Labor and Workforce Development.

New Jersey has coordinated a range of multi-agency resources to support our business community during this challenging time,” said Governor Christie. “By partnering with banks and expanding access to capital in this expeditious manner, we will be able to provide a financial lifeline to businesses and help sustain New Jersey’s economic vibrancy.”

The Main Street Disaster Relief Program would temporarily increase the benefits of the guarantee EDA offers on lines of credit. Currently, the Main Street Business Assistance Program includes an EDA line of credit guarantee of up to $250,000. If it is approved by the Board on Tuesday, line of credit guarantees will be temporarily increased to up to $500,000 and made available to businesses that were damaged in the hurricane in order to provide them the necessary financial resources as they await insurance proceeds. EDA offers line of credit guarantees only through its Preferred Lenders; however, this temporary disaster relief effort will also make available line of credit guarantees to EDA Participating Banks as well. The line of credit guarantees will be limited to the lesser of $500,000 or 50 percent the line of credit outstanding at the time of default.

"The Main Street Disaster Relief Program is all about helping our businesses resume operations as quickly as possible in the wake of last week’s hurricane,” said Lt. Governor Guadagno. “Our banking partners are a critical part of this effort, and we encourage impacted business owners across the state to reach out to their banks to find out if this program can help.”

Applicants will have until December 31, 2011 to apply for assistance through the Main Street Disaster Relief Program. Businesses must be in operation for at least two years to be eligible and applicants must be in good standing with their bank. Additional eligibility and terms for the EDA line of credit guarantee through the Main Street Business Assistance Program will remain for this temporary relief effort, which is available to businesses and not-for-profit organizations.

“TD Bank is committed to offering New Jersey sound and beneficial lending programs, and we applaud the Governor’s quick action in advancing a program that will provide critical support to those businesses and not-for-profits that require immediate capital as they await insurance proceeds,” said D. Nicholas Miceli, Market President, TD Bank, NA.

Businesses impacted by the hurricane are encouraged to call their lending institution as a first step. For a list of the EDA’s Preferred Lenders and Participating Banks, click here.

The Main Street Disaster Relief Program is one component of the host of business recovery assistance services announced by Governor Christie and Lt. Governor Guadagno last week. In addition, BAC’s Business Call Center is also the one-stop resource for more information on how to get businesses back up and running. Information for all services may be easily accessed through BAC by calling 1-866-534-7789 or through the state’s business portal at www.newjerseybusiness.gov.

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