News Column

Christie Administration Approves Loans to Sandy-Damaged Businesses to Sustain Recovery

February 27, 2014



TRENTON, N.J., Feb. 27 -- The New Jersey Economic Development Authority issued the following news release:

In support of Governor Christie's commitment to assist the recovery of businesses and communities in the aftermath of Superstorm Sandy, the New Jersey Economic Development Authority (EDA) today announced approval of Stronger NJ Business loans for several storm-impacted small businesses.

"Small businesses are so important to the state's economy - from the jobs they provide to the resources they offer to residents and other enterprises," said Michele A. Brown, EDA Chief Executive Officer. "We are happy to support the recovery of Sandy-impacted businesses throughout the state through the Stronger NJ Business Loan Program."

The following three businesses have been approved for working capital loans through the Stronger NJ Business Loan program after destruction of property, loss of inventory, and disruption of business following Superstorm Sandy.

* Formica Brothers Bakery (FBB), Atlantic City, was approved for a $2.24 million working capital loan for the purchase of inventory and other working capital expenses. FBB also received a $50,000 Stronger NJ Business Grant. Established in 1919, FBB hand crafts and bakes over 200 types of bread daily, supplying local businesses, schools and markets. FBB currently employs 36 workers, and expects to create six new jobs in the next two years.

* Royal Baking Corp., Moonachie, was approved for a $1.97 million loan. Established 55 years ago, the company serves as a commercial bakery offering fresh and frozen products. It currently employs 50 and expects to create 70 new positions within the next two years.

* Susan Wagner Designs Limited Liability Company, Point Pleasant, was approved for more than $73,000 in working capital assistance, between grants and loans. The retail shop sells bridal, prom, evening and communion dresses, as well as accessories. Proprietor Susan Wagner also designs an exclusive line of dresses for her clients. The business currently employs one full-time and one part-time employee and plans to convert the part-time employee to full-time and add two additional full-time employees.

Stronger NJ Business loans of up to $5 million with zero interest and no principal payments for up to 24 months are available to small businesses impacted by Superstorm Sandy, as well as businesses looking to expand within storm-impacted communities. Loans can be used to support renovation, new construction, equipment and working capital needs.

To be eligible for the Stronger NJ Business Loan program, entities within the nine most impacted counties as determined by the U.S. Department of Housing and Urban Development (Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean and Union) must evidence a minimum of $5,000 in physical damage to real property or non-perishable and non-consumable inventory; and/or demonstrate that the project will positively impact the economy of the community.

Entities outside of the nine most impacted counties must have at least one impacted location in New Jersey, defined as physical damage to the place of business (must meet the $5,000 physical damage requirement).

In accordance with New Jersey's Community Development Block Grant (CDBG) Disaster Recovery Action Plan, EDA also administers the Stronger NJ Business Grant program, which supports businesses damaged by the storm with grants of up to $50,000, and the Stronger NJ Neighborhood and Community Revitalization (NCR) Program, which supports the long-term recovery of small businesses and communities by funding long-term economic revitalization priorities. The NCR Program also supports projects that retain or hire new employees, thus contributing to the State's economy.

For more information on the Stronger NJ Business programs, including the complete list of eligibility and eligible uses of funds, visit www.njeda.com/strongernjbusiness or call EDA's Sandy hotline at 1-855-SANDY-BZ (1-855-726-3929).

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Source: Targeted News Service


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