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NJEDA Accepting Applications For Commercial Projects Under Economic Redevelopment And Growth Program
The New Jersey Economic Development Authority (NJEDA) is now accepting applications for commercial projects under the Economic Redevelopment and Growth (ERG) Program. The Commercial ERG Program is an incentive to help developers and businesses address project financing gaps in development or redevelopment projects, including below market development margins or rates of return.
A link to the application and more information is available at https://www.njeda.com/erg.
Qualified projects can receive an incentive grant reimbursement of up to 30 percent of total eligible project costs. Projects in Atlantic City, Camden, Paterson, Passaic, and Trenton can receive reimbursements up to 40 percent of eligible project costs. Subsidies awarded through the ERG Program are not meant to be a substitute for conventional debt and equity financing. Before applying, applicants must have the balance of their funding identified or in place or be able to demonstrate that any terms of other financing are reasonable.
Among other requirements, projects must:
- Be predominantly commercial and contain 100,000 or more square feet of retail, office, and/or industrial uses for purchase or lease.
- Be located in a qualifying incentive area.
- Not have commenced any construction at the site of a proposed redevelopment project prior to submitting an application or demonstrate to the NJEDA that the project would not be completed otherwise or is to be undertaken in phases.
- Demonstrate that a project financing gap exists.
- Demonstrate the tax revenues the State will realize from the project will be greater than the incentive being provided.
For comprehensive information on eligibility for the extended Commercial ERG Program download the 2021 Commercial Extension Clarification Document at https://www.njeda.com/erg.
All applicants are required to submit an application via the NJEDA’s online application at https://application.njeda.com/. Applications will be accepted on a first-come, first-served basis until funds are exhausted or Thursday, December 30, 2021. More information about the application process is available at https://www.njeda.com/erg.
Please reach out to Hilary Chebra, Manager, Government Affairs at hchebra@chambersnj.com if you have any questions.
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