Economic Recovery Board for Camden

ERB Financing Assistance

Purpose : To provide financial assistance to for-profit and not-for-profit organizations, businesses, commercial or residential developers and governmental agencies to support the economic revitalization of the City of Camden.

Project Eligibility : Planned physical improvements that, when completed, will contribute to the economic, cultural, recreational, tourism, social (including housing, parks and community centers) or educational development of the City of Camden. Defined as Revitalization Projects, these physical improvements must have a specific location within the City. Costs associated with their design, construction and implementation, must be capable of being started in two (2) years and completed in four (4) years.

Use of Funds : Include the construction of new or rehabilitation of housing, commercial and industrial buildings, supporting infrastructure (such as, but not limited to, water and sewer amenities, brownfields remediation), demolition, community facilities (such as, but not limited to, parks, libraries and community centers), tot lots, community gardens and certain municipal and institutional projects. Eligible costs also include land acquisition and assembly, provided that these can be concluded in two (2) years and there is a credible financial and development plan for the reuse of the land that can be started within one (1) year after land acquisition.

Types of Financial Assistance:

Loans : Long-term, permanent gap financing is available for eligible projects and uses based on the three types listed below (Gap is defined for all loans as Total Project Cost minus the amount of conventional financing obtainable for the project and minus at least a 10% equity contribution into the project. Minimum loan amount is $35,000).

General - Gap financing of up to 30% of total project costs is available with an interest rate of ½ of the Federal Discount Rate at the time of approval or 3%, whichever is greater. The term of the loan is a maximum of 10 years. (Loans may be amortized over 25 years with a balloon payment at the end of 10 years).

Market Rate Housing - Gap financing in the form of a “soft loan” of up to 40% of total project costs is available. Interest and principal payment may not be required if the project is not feasible with either or both requirements. Owner occupancy deed restrictions may be required, however income limited restrictions will not be placed on market rate housing developments.

Projects Creating 500 or More Jobs - Bullet loans are available for up to 10 years or the term of conventional financing for the project with monthly, interest-only payments and principal due at the end of the loan term. Under certain circumstances, principal and interest payments may be paid at the end of the term.

Recoverable Grants : Are available for feasibility studies and other predevelopment costs related to the project. If the project moves forward, the recoverable grant must be repaid through the permanent financing of the project.

Grants : Funding up to 50% of total project costs is available with a minimum of $25,000 and maximum of $1,000,000 for public purpose projects such as playgrounds, community gardens and other similar projects.

Equity Investments for Projects Creating 500 or More Jobs : An ownership interest of a minimum of $1,000,000 may be taken in a project to enable it to proceed, with share in the future profit or loss of the business.

Copyright © 2012 New Jersey Economic Development Authority (NJEDA)
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Trenton, NJ 08625-0990
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