Mercer County Executive Dan Benson and the Board of County Commissioners announced they will partner for a second phase with UCEDC, a non-profit Economic Development Corporation, to establish a 0% Interest Loan Program for small businesses in Mercer County.
The program will allow Mercer County businesses to apply for affordable access to capital by dedicating an additional $240,000 in American Rescue Plan Act (ARPA) dollars to be administered through the Mercer County Office of Economic Development, according to a press release through Mercer County.
The UCEDC will provide loans on a first-come, first-served basis utilizing current lending products and capital.
“Small businesses represent the life-blood of our local economy here in Mercer County, ” Mercer County Executive Dan Benson said. “In extending our interest-free loan program we are excited to give our Mercer County small businesses a meaningful jolt to spur economic development.”
The county leverages another $500,000 in interest-free loans by extending UCEDC’s contract, according to UCEDC President Adam Farrah.
“This will provide more assistance to entrepreneurs, building on the $750,000 we’ve already distributed through our partnership,” he said. “It’s a privilege to contribute to the success of Mercer County small businesses and make a positive impact on local communities in New Jersey.”
The program will require the following:
- Businesses must be located in Mercer County, registered with the State of New Jersey and must have been formed on or before September 1, 2019.
- Businesses must have 30 full-time equivalent employees or less at time of application and have less than $10 million in annual gross revenue based on most recent tax return.
- Loans will range from $10,000 to $20,000.
- Loans will be offered at 0% interest, with a five-year repayment term.
- Funds can be used for working capital, inventory, or purchases of furniture and equipment.
- No collateral requirements, pre-payment penalties, processing, closing, or application fees will be required.
- Personal guarantees of the significant owners of the business (10% or greater) are required.
- Applicants must not have had a bankruptcy or significant charge-offs within the most recent 3-year period.
Based on the maximum loan amount of $20,000 and the parameters above, Mercer County will provide funding to approximately 26 businesses in the target market.
For additional information, contact Theo Siggelakis at [email protected].