By Joshua Burd
The state Economic Development Authority is kicking off a series of in-person and virtual information sessions to introduce its new $20 million Emerging Developers Fund.
According to the authority, the grant program will help developers gain access to capital and build additional capacity to expand their existing portfolio by providing grants of up to $250,000 for predevelopment soft costs. The first event is scheduled for 6 p.m. Tuesday, March 12, at the Hilton Garden Inn Camden Waterfront Philadelphia in Camden, with applications slated to launch in April, following the EDA’s approval of the pilot program last fall.
“Rising developers must be part of the process as we strengthen and build up underserved New Jersey communities,” Lt. Gov. Tahesha Way said following the November vote by the authority’s board. “The NJEDA’s Emerging Developers Fund is in line with Governor Phil Murphy’s vision for a more accessible and equitable economy and a stronger Garden State.”
Officials noted that the Emerging Developer Fund aims to address the difficulties that remain a burden to emerging developers, which limit opportunities to expand their portfolios. Specifically, this includes access to capital due to barriers caused by predatory lending, excessive carrying costs and predevelopment expenses that result in projects being stalled, and in some cases underutilized, the EDA said, noting that such deterrents have created financial setbacks and limited portfolios for entities that lack the required capital to cover soft costs.
The program will support small-scale developers that have completed at least two but no more than five commercial or mixed-use properties of similar scope.
“As we work to revitalize communities across the state, we must ensure new, emerging developers have access to the same opportunities and advantages in order to create an inclusive economy,” Tim Sullivan, the EDA’s chief executive, said in the November announcement. “The Emerging Developer Fund will better position small-scale developers to grow and succeed, which will ultimately help build stronger communities. The program’s focus on developers in underserved communities underscores Governor Murphy and Lieutenant Governor Way’s commitment to creating a stronger, fairer economy and improving the lives of hardworking New Jerseyans.”
