The Federally established State Small Business Credit Initiative support investments into New Jersey companies
Through the use of three unique investment strategies funded through the federal State Small Business Credit Initiative (SSBCI), the New Jersey Economic Development Agency (NJEDA) is supporting New Jersey small and early-stage businesses. The NJEDA named the firms who will oversee and deploy capital via its Blended Capital Fund, Life Science/Health Care Fund, and Socially & Economically Disadvantaged Individuals (SEDI) Seed Fund.
“Together, these three funds will help position New Jersey businesses for long-term growth and success,” said NJEDA Chief Executive Officer Tim Sullivan. “Governor Murphy’s economic development strategy has been centered on connecting entrepreneurs and small business owners with the capital they need to succeed in an equitable and inclusive manner.”
This past December, the U.S. Department of Treasury approved New Jersey’s SSBCI application and awarded the NJEDA $255 million to create financial and technical assistance programs for small and micro businesses, and early-stage, innovation-focused companies. SSBCI is a federal program designed to catalyze lending and investment of private capital into small businesses, particularly those that would not otherwise have access to funding.
The Funds and their approved investment managers are:
- Blended Capital Fund:
$50 million of co-invested SSBCI funds to support the purchase of eligible loans from Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) enabling them to conduct more lending. Calvert Impact as manager will leverage NJEDA investments to create and a NJ Loan Participation program for New Jersey-based small businesses through working capital loans.
- Life Science/Health Care Fund:
$60 million Life Science/Health Care Fund will be managed by three firms for the support of early-stage New Jersey life science and health care businesses, including companies in biotechnology, pharmaceuticals, and medical devices. The amounts allocated are: $12.5 by New York City-based Signet Healthcare Management LLC, $7.5 million by Tech Council Ventures LLC, and $5 million by Syridex Bio LLC.
- SEDI Seed Fund:
$20 million SEDI Fund will be managed by Include Venture Partners, LLC and Gener8tor Management, LLC for the support of seed and early-stage startups substantially located in New Jersey with SEDI owners. The eligibility can be geographic, demographic, or socioeconomic.
The Seed Fund is broken down to:
$15 million managed by Include Venture Partners, focusing on investing in diverse-led undervalued, outperforming funds and founders, with a focus on ESG and Sustainability, and
$5 million managed by Gener8tor Management, LLC for its startup and small business venture funds and accelerators across 41 cities, 20 states and two countries. The firm also provides a range of resources to its portfolio companies.
NJ Small and early-stage businesses benefit from the full range of these programs and their funds that support New Jersey’s business ecosystem that bolsters job creation.
