HCEDC Grant to Eliminate Interest on Loans for Small Businesses and Nonprofits
Amid the COVID-19 pandemic, small businesses are struggling to stay afloat. Now help is on the way.
The Hudson County Economic Development Corporation (HCEDC) has committed a new grant of $ 100,000 to New Jersey Community Capital (NJCC).
The grant will help lower interest rates for the Garden State Relief Fund, which provides working capital loans to small businesses and nonprofits in Hudson County affected by the COVID-19 pandemic.
“We know that small businesses and nonprofit communities have experienced extraordinary challenges amid COVID-19,” County Director Tom DeGise said. “This important partnership with the NJCC through the Garden State Relief Fund provides much needed capital to those hardest hit by the COVID-19 pandemic. We are proud to launch this program as part of the HCEDC’s commitment to support underserved communities through access to capital and timely information on resources related to the coronavirus pandemic and business training. “
The HCEDC grant will eliminate interest on loans for small business and nonprofit applicants in eligible municipalities applying to the Garden State Relief Fund. The grant will reduce the usual interest rate from 3% to 0% for eligible borrowers.
The NJCC launched the Garden State Relief Fund to address the unique financial needs of vulnerable and historically underserved New Jersey businesses and organizations affected by the pandemic.
The program provides low-interest loans of up to $ 75,000 to small businesses and non-profit organizations with 3 to 75 full-time employees. Currently, 17.6 percent of Hudson County residents remain unemployed, among the highest in the state.
“A much needed capital”
“This significant grant will help restore communities in Hudson County that need long-term stability,” said Wayne Meyer, President of the NJCC. “The partnership and support of the HCEDC will help accelerate sustainable and equitable recovery in the vibrant communities we serve.
Since its inception, the NJCC has partnered with several counties and municipalities to expand the Garden State Relief Program and identify immediate and long-term solutions tailored to local needs.
As of July 30, 83 Garden State Relief Fund loans have been made in 63 towns and villages in 20 New Jersey counties, including nine in Hudson County. 36% of loans went to small businesses and non-profit organizations owned by women and minorities.
“Hudson County is home to one of the most diverse, culturally rich and fastest growing regions in the state,” said Michelle Richardson, Executive Director of the HCEDC. “The HCEDC continues to support local economies in Hudson, ensuring the survival of our Main Street business owners struggling to recover from the pandemic. “
Applicants in Hudson County previously approved for a Garden State Relief loan are also eligible for a loan modification to reduce their interest rate from 3% to 0%.
To learn more about the Garden State Relief Fund, visit www.newjerseycommunitycapital.org/initiatives/garden-state-relief-fund.
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