ConnectOne, which has 20 branches in the state, joins more than two-dozen New Jersey banks in the EDA’s Premier Lender Program. Under the program, the EDA can guarantee or participate in a portion of a bank’s commercial loans or credit facilities.
The program was designed to give small businesses in the state access to lower costs of capital while reducing the risk exposure for local banks in their lending portfolios. The program offers loans with up to a $2 million EDA loan participation, or $1.5 million loan guarantee.
For fixed assets, the program offers up to a $750,000 loan participation, or $1.5 million loan guarantee for term working capital, and up to a $750,000 line of credit guarantee.
“ConnectOne Bank’s partnership with the EDA will enable us to support the growth of more New Jersey businesses and in turn, drive our local economy,” said Elizabeth Magennis, chief lending officer of ConnectOne Bank, in a prepared statement.