As many people know, small businesses are the engines of the economy creating jobs for residents across New Jersey. However, tough economic times have meant that small businesses and start-ups in particular, have had difficulty in obtaining loans. However, New Jersey received a shot of good news on October 12 when it was announced the state would receive $33.8 million in federal aid for small businesses. That capital could then be used to fund not only existing businesses in expansions but also create new jobs due to new business start-ups as well as expanding ventures.
The money is part of the federal State Small Business Credit Initiative, which was created under the Small Business Jobs Act of 2010. The $33.8 million is designated to encourage small business lending and job creation in New Jersey. One state legislator noted that the loans available under the program will help finance those businesses that are creditworthy but are currently unable to obtain the loans they need to expand and create jobs.
The funds will be received by the state's treasury over two years in three allotments. Eligible companies include not only small businesses and small manufacturers, but also woman and minority-owned enterprises. Particular focus will be paid to those businesses in under-served communities.
Any business considering applying for loans under the program may well benefit from consulting with an experienced business and commercial law attorney. The attorney may assist with verifying the loan packages necessary to apply, as well as negotiating terms to maximize the opportunities for loan approval. Moreover, any start-up or new business may benefit from meeting an attorney to help with the sometimes arduous process of correctly establishing a legal business presence. As with most areas of law, New Jersey commercial law has a language all its own that can seem confusing and even intimidating to some. An attorney can help navigate through the red tape and assist in ensuring the business fully complies with all applicable laws and regulations.
Source: The New Jersey News Room, " N.J. to receive $33.8M in federal aid for small business growth," Tom Hester Sr., Oct. 12, 2011