Business Development Services

Capital

Capital Summary

Invest Newark is committed to equitable economic growth by developing programs and helping businesses access the resources needed to build and grow. Invest Newark manages both its own investment funds that support local businesses and provides referrals to other sources of capital. We follow through with our commitment to your success by providing support even after you acquire financing.

Business Loans

Purpose: To provide funding for expansion, Furniture, Fixtures, and Equipment, and leasehold improvement funds to Newark small businesses of various sizes. 

Loan Use: For projects that will create new jobs in the City of Newark 

Loan Range: $50,000 – $500,000 (Larger requests will require the participation of a co-lender.)

Minimum Eligibility Requirements: 
– Minimum Credit Score of 600 
– Business in Operation for a minimum of 2-years 
– Borrower and corporate entity’s principal owners are US citizens or legal permanent residents 

Details:
Interest Rate:
3%-7%; based on a risk assessment. 

Fees: 1% of the loan, closing costs and legal fees 

Repayment Term: Up to 7 years 

Acquisition Loans

Purpose: To pay for the purchase of property in the City of Newark and closing costs thereof.

Loan Use: Used for rental or for-sale housing, commercial or mixed-use projects and/or community projects

Loan Range: $50,000 to $250,000 (Larger requests will require the participation of a co-lender.)

Minimum Eligibility Requirements:
– Minimum Credit Score of 600 
– 2 years’ experience 
– Borrower and corporate entity’s principal owners are US citizens or legal permanent residents

Interest Rate: 3%-7%; based on a risk assessment.

Fees: 1% of the loan, closing costs and legal fees 

Loan Term: 24 months 

Predevelopment Loans

Purpose: To assist with preliminary expenses related to environmental review, design, structural assessments and/or planning of projects.

Loan Use: Used for rental or for-sale housing, commercial or mixed-use projects, commercial and/or community projects

Loan Range: $50,000 to $500,000

Minimum Eligibility Requirements:
– Minimum credit score of 600
– 3 years’ experience with the ability to demonstrate the successful completion of two income producing properties
– Evidence of site control acceptable to Invest Newark
– Borrower and corporate entity’s principal owners are US citizens or legal permanent residents

Interest Rate: 3-7% Fixed; based on a risk assessment.

Fees:
1% of the loan, closing costs and legal fees

Loan Term:
24 months

Mini-Permanent Loans

Purpose: To provide term loan funding for projects that need assistance with stabilization or interim financing

Loan Use: Used for rental or for-sale housing, commercial or mixed-use projects, commercial, community projects, or working capital lines of credit

Loan Range: $50,000 to $1,500,000

Minimum Eligibility Requirements:
– Minimum credit score of 600
– 3 years’ experience
– Borrower and corporate entity’s principal owners are US citizens or legal permanent residents

Interest Rate: 3-7% Fixed; based on a risk assessment

Fees: 1% of the loan, closing costs and legal fees

Loan Term: Up to 7 years

Business Development Grants

Attendees in our Language of Capital program and Executive Business Accelerator program have the opportunity to compete for business development grants if they successfully complete the program. Three grants are offered for each program cohort and range from $1K-$3K in our Language of Capital program and $2.5K-$7.5K in our Executive Business Accelerator. 

Assistance

For assistance with
Business Development,
please contact:
Emily Manz