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New Jersey Governor Phil Murphy announced the opening of programs designed to provide financial assistance to New Jersey-based companies following the collapse of Silicon Valley Bank last week.
3-14-2023 1:32pm
NJ Launches Emergency Assistance Programs for Companies Impacted by Silicon Valley Bank Collapse
New Jersey Governor Phil Murphy announced a series of programs designed to provide emergency assistance to companies in the state impacted by the recent collapse of Silicon Valley Bank (SVB).
The New Jersey Economic Development Authority (NJEDA) will launch a suite of financial support programs, including the reopening of the Entrepreneur Support Program, the launch of the Angel Match Program, and the scheduling of a special board meeting to consider an emergency liquidity facility. These programs aim to provide much-needed financial support to companies facing liquidity challenges due to the SVB collapse, helping them meet payroll, pay rent, and continue their daily operations.
The Entrepreneur Support Program, funded at $5 million, will provide a guarantee to support the repayment of an investor loan advanced for working capital purposes. It aims to encourage investors to support businesses within their portfolios during this liquidity crisis when investor support is particularly crucial. The program provides an NJEDA guarantee of up to 80 percent for an eligible new loan or convertible note by a qualified investor into a New Jersey-qualified business, not to exceed a $200,000 guarantee per company.
The Angel Match Program, funded at $20 million, will help early-stage businesses bridge funding gaps as they scale their operations and refine their products. The program, which will match up to $500,000 in direct investments, aims to fuel the growth of early-stage companies while increasing the pool of available capital, stimulating further investments into New Jersey’s innovation ecosystem.
The NJEDA board will also consider the creation of a $10 million emergency liquidity facility that will review financial support requests for New Jersey-based companies with over $250,000 in deposits at SVB. The program is anticipated to support impacted companies with a loan of up to $500,000 to provide short-term financing options for at most 12 months.
Governor Murphy highlighted the importance of supporting New Jersey businesses to build a stronger and fairer economy, stating that “By offering a suite of programs for New Jersey entrepreneurs impacted by the SVB collapse, we will continue to keep residents employed and support companies that are vital to our innovation ecosystem.”
NJEDA Chief Executive Officer Tim Sullivan praised the state’s commitment to the success of the entrepreneurial sector, adding that “Today’s announcement serves as a testament to New Jersey’s commitment to the success of our entrepreneurial sector, with the state pivoting almost overnight to launch programs that provide the critically necessary support for entrepreneurs during times of economic uncertainty.”
These programs will provide a much-needed lifeline to companies affected by the SVB collapse, enabling them to keep their operations running and the State's economy moving forward.
