Great news for Solopreneurs and Small companies in NJ – the Economic Development Agency’s AngelMatch program for US Federal Funds
Solopreneur Overview
- State: NJ
- Funding: Up to $500k
- Type: Loan
- Source: US Federal via State
Who is the NJ EDA?
NJ EDA (( New Jersey Economic Development Authority) ss an independent state agency in New Jersey with the mission of strengthening the state’s economy.
- Promote economic growth and development in New Jersey.
- Activities:
- Provide financial assistance to businesses through grants, loans, and tax credits.
- Help renew communities by investing in infrastructure and revitalization projects.
- Promote New Jersey’s strategic advantages to attract businesses and investment.
- Target: Businesses of all stages, from startups to established companies, along with community development initiatives.
US Federal Funding via the SSBCI
The Angel Match Program aligns with the goals of SSBCI, as angel investing is a critical source of early-stage capital to help high-quality start-up ventures build and test their products as well as scale their business models. SSBCI is designed to cause and result in the lending and investment of private capital into small businesses, unlocking capital for companies that would otherwise not have access to it.
Program Highlights
NJEDA Investment is in the form of Convertible Promissory notes with warrants equaling 50% of note’s principal. Individual note amounts between $100,000 – $500,000 based on match funding and NJEDA analysis of company financing and operations, management team and experience, the product and target market, as well as investor type and involvement.
- Loans will reach maturity in 10 years, with no payments for first 7 years
- Loans are matched $1 (NJEDA): $1 (Qualified Outside Investment)
- No restriction on participation in other NJEDA incentive programs
The Angel Match Program is designed to disburse funding from the State Small Business Credit Initiative (SSBCI), a federal program administered by the US Department of Treasury. Its purpose is to propel the creation of an entrepreneurial ecosystem that stimulates innovation and economic development, providing employment opportunities for New Jersey residents.
This program matches angel investors’ direct investment in early-stage, product-based technology companies within targeted industries on a 1-to-1 basis with unsecured convertible notes ranging from $100,000 to $500,000.
Angel Match Program
The Angel Match Program is indeed an initiative by the New Jersey Economic Development Authority (NJEDA) that provides funding to early-stage businesses in the state. It’s not exactly a grant, but it functions similarly by offering matching funds for qualifying businesses.
Here’s a breakdown of the Angel Match Program:
- Function: Provides matching investments for early-stage, product-based technology companies in targeted industries within New Jersey.
- Investment Type: Offers convertible notes ranging from $100,000 to $500,000. These notes convert to equity in the company if certain milestones are met.
- Matching: NJEDA matches angel investors’ direct investments on a 1:1 basis.
- Benefits: Provides growth capital to support early-stage businesses and encourages angel investment in the state.
While it’s not a traditional grant (you don’t necessarily receive free money), the Angel Match Program offers significant financial support for qualified businesses.
