TRENTON, N.J. - The New Jersey Economic Development Authority and Natwest Bank said they had agreed to a $30 million bond financing that would benefit New Jersey businesses eligible for loans under a federal Title IX program.
The New Jersey development agency now has a portfolio of nearly $30 million of small business loans initially funded by federal grants received under Title IX of the Public Works and Economic Development Act of 1965.
As part of the agreement, the EDA plans to sell bonds backed by a direct pay letter of credit from NatWest Bank. Payments received on the existing and new Title IX loans will be used to repay the bonds, which will have a six-year maturity. The sale of the bonds will provide the EDA with funds to make new loans to borrowers that qualify for assistance.
Since 1976, the EDA has received four Title IX grants totaling about $21.1 million from the U.S. Department of Commerce. EDA has used these funds to make nearly 350 loans totaling more than $80 million.