Program is Designed to Speed Flow of Capital to Growing State Businesses
TRENTON, N.J. – October 16, 2007 – The Bank has become the latest financial institution to become a New Jersey Economic Development Authority (EDA) Preferred Lender. The program is designed to streamline the EDA’s loan-approval process and speed the flow of capital to growing businesses in the state.
“We are pleased to welcome The Bank to our Preferred Lender Program and eager to work with The Bank to ensure that qualified New Jersey businesses have ready access to the capital they need for fixed assets like buildings and equipment, working capital for operating expenses, and refinancing higher cost debt,” said EDA Chief Executive Officer Caren S. Franzini.
The Preferred Lender Program has become an attractive choice for the EDA’s more active banking partners and borrowers because it features a three-day turnaround time for loan approval, Franzini said. The program applies to transactions in which the EDA buys a participation in bank financing and/or guarantees a portion of a bank loan.
“We are proud that the EDA has named The Bank a Preferred Lender. Our bank blends the best of both worlds – the local decision-making and personal relationships found in a community bank and the strength and world-class product offering of a larger bank,” said Scott Kintzing, chief executive officer of The Bank.
“Our bank is known for its flexibility and expertise in meeting the unique needs of each customer, and we look forward to working with even more New Jersey businesses through the Preferred Lender Program.”
Under the program, the EDA reviews an application and renders a decision within three businesses days, and issue a written term sheet within two business days of approval. Upon notice from the participating lender, closing may occur within three business days.
The EDA can provide up to a 50-percent participation or guarantee in bank loans up to $1.75 million for fixed asset loans and $1.5 million for working capital loans.
EDA participation and guarantee terms may be up to 10 years for fixed asset loans and up to five years for working capital loans.
Borrowers of low-interest EDA funding under the Preferred Lender Program have the option of choosing a fixed rate indexed to the five-year Treasury rate or a variable rate indexed to the Prime Rate. Businesses must be in operation for at least two years and commit to creating at least one new job per $50,000 in EDA exposure. Manufacturers need only to maintain one job per $50,000 of EDA exposure.
The Preferred Lender Program was established as an 18-month pilot in 2001. It became a full-fledged EDA program in 2003. Other financial institutions participating in the program are Bank of America, Commerce Bank, New Jersey Community Capital, North Fork Bank, PNC Bank, Sovereign Bank and Sun National Bank.
The Bank, formerly The Bank of Gloucester County, was formed in 1989 as a full-service community bank. It is headquartered in Woodbury and operates 46 branches throughout Atlantic, Camden, Gloucester, Mercer, Monmouth, Ocean and Salem counties. The Bank is a wholly owned subsidiary of Fulton Financial Corporation, a regional financial holding company based in Lancaster, PA, which has assets of $15 billion, revenues in excess of $1 billion and 4,200 employees.
The EDA is an independent, self-sustaining state financing and development agency that works to promote economic growth, job creation and the revitalization of New Jersey’s communities with financing assistance, technical support and entrepreneurial training, and real estate development activities.
