Newark: It's Your Move
Business Loans and Incentives
To help companies relocate and expand in the state, New Jersey offers a comprehensive array of business loans, grants and incentives. Many of these directly benefit Newark, allowing us to offer some of the best employment, relocation and training incentives in the nation. Brick City Development Corporation partners closely with state agencies and local partners to deliver tailor-made financial and incentive packages that meet the specific needs of your company.
Below are a few of the business development loans available through BCDC:
NOUEZ/BCDC Urban Enterprise Zone Loan Fund
The Newark Office of the Urban Enterprise Zone and Brick City Development Corporation (NOUEZ/BCDC) Urban Enterprise Zone Loan Fund (the “NOUEZ/BCDC Urban Enterprise Zone Loan Fund”) was created as a $9,000,000 loan fund to expand the economic base of the City of Newark and improve the revitalization and health of businesses throughout the City’s Urban Enterprise Zone (UEZ or Zone). By assisting developers and small businesses in generating and obtaining capital, the economic base will be improved and employment opportunities enhanced. The NOUEZ/BCDC Urban Enterprise Zone Loan Fund will address the lack of adequate credit availability by forming a unique public‑private partnership with financial institutions. The UEZ/BCDC Loan Fund will provide gap financing (“Loans”) for various economic development projects in the Zone.
First Movers Fund
Being the first to move into a neighborhood or a building can be daunting task – even if the location shows enormous potential. That is why Newark has established a special new First Movers Fund to help businesses invest in designated areas that we believe show great promise.
Grow Newark Fund
The Grow Newark Fund is BCDC’s $6 million loan fund designed to provide financing to small businesses that do not meet the traditional eligibility requirements for small business bank loans. Developed in partnership with the Grow America Fund, the fund operates as a community development bank to support the creation and expansion of eligible underserved, minority- or women-owned small businesses.
BCDC Newark Fund
Capitalized by the social investment group at Prudential Financial, Inc. the BCDC Newark Fund is a loan fund created and managed by New Jersey Community Capital in partnership with Brick City Development Corporation.
The mission of the Fund is to retain, attract and grow businesses, enhance small and minority business capacity, and spur real estate development by providing loans up to $400,000 to Newark- based businesses.
Business Employment Incentive Program (BEIP)
The New Jersey Economic Development Authority (EDA) awards BEIP grants to expanding or relocating businesses that create jobs in New Jersey. Grants may be awarded for up to 10 years and can range between 10% and 80% of the total amount of state income taxes withheld by the company during the calendar year from the new employees hired. Program requirements include:
- A business receiving the grant must create and maintain at least 25 jobs to qualify.
- For biotech or high-tech businesses need to create and maintain 10 jobs to qualify.
- A business must also demonstrate that the BEIP grant is a “material” factor in moving the job expansion or relocation forward in New Jersey, that it is financially viable.
- BEIP applicants may be eligible for a grant award of up to 50%, equivalent to the total amount of the State income taxes withheld by the business during the calendar year for the new employees hired.
BEIP allows an increase of up to 80% if the company utilizes “Smart Growth” principles.
Business Relocation & Retention and Assistance Grant (BRRAG)
The New Jersey Commerce Commission administers this retention and relocation grant program that is designed to preserve jobs from being relocated out of state. BRRAG offers grants as credit against business tax liability. Grants of up to $1,500 per job retained are payable as a tax credit against a company’s corporate tax liability. Program requirements include:
- A business receiving the grant must relocate a minimum of 50 jobs from one or more locations in the state to a new business location or locations in New Jersey.
- Grant values cannot exceed 80 percent of tax payments to the state.
Companies using this BRRAG program may also be eligible for New Jersey’s Sales and Use Tax Exemption Program.
Newark Urban Enterprise Zone (Newark UEZ)
Newark is one of 37 municipalities throughout the state of New Jersey that has been designated a New Jersey Urban Enterprise Zone. The UEZ Program offers participating businesses many tax and financial incentives that encourage business growth and stimulate local economies.
Urban Transit Hub Tax Credit Program (UTHTC)
Qualified businesses located in Urban Transit Hubs may qualify for tax credits equal to 100% of the qualified capital investment that may be applied against corporation business tax, insurance premiums tax or gross income tax liability.
Economic Redevelopment Growth Grant (ERGG)
The “RAD” program has been replaced with the Economic Redevelopment Growth Grant (ERGG) program which utilizes up to 75% of the incremental increase in certain State and local revenue sources to provide gap financing of up to 20% of the project cost for certain projects.
New Market Tax Credit Program (NMTC)
Businesses or nonprofit organizations in New Jersey with a project located within areas designated for Smart Growth may qualify for up to $10 million for fixed assets or working capital.
Department of Labor Training
The Office of Grant Operations creates partnerships between federal, state and local government to offer business incentives to employers through customized training grants. Through the WorkFirst NJ On-the-Job (OJT) Program, employers may receive up to half of their new employee’s gross wages for up to 26 weeks to help defray the costs of their training.