Mercer County Executive Brian M. Hughes and the Mercer County Office of Economic Development are excited to announce that the county will partner with the UCEDC to establish a 0% Interest Loan Program for small businesses in Mercer County.
Dedicating $350,000 in American Rescue Plan Act (ARPA) dollars, the program will allow Mercer County businesses to apply for affordable access to capital. The UCEDC will provide loans on a first-come, first-served basis utilizing current lending products and capital.
“Mercer County continues to provide financial options for its vibrant small businesses,” said County Executive Hughes.
“Through our 2023 Mercer County Small Business Grant Program, our newly announced Small Business Investment Program and this initiative, we recognize the importance of our small businesses to our regional economy and want to make every effort to help them continue to grow and flourish.”
Specifically, the program will require the following:
- Businesses must be located in Mercer County, registered with the State of New Jersey and have been formed on or before September 1, 2019.
- Businesses must have 30 full-time equivalent employees or less at time of application and have less than $10 million in annual gross revenue based on most recent tax return.
- Loans will range from $10,000 to $20,000.
- Loans will be offered at 0% interest, with a five-year repayment term.
- Funds can be used for working capital, inventory, or purchases of furniture and equipment.
- No collateral requirements, pre-payment penalties, processing, closing or application fees.
- Personal guarantees of the significant owners of the business (10% or greater) are required.
- Applicants must not have had a bankruptcy or significant charge-offs within the most recent 3-year period.
Through the Mercer County loan program, UCEDC will provide $750,000 of lending to small businesses located in Mercer County. With an average expected loan amount of $15,000, given the parameters above, Mercer County will provide funding to approximately 50 businesses in the target market.
Please click Mercer County Zero-Interest Loan Program flyer or here to learn more and apply.