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To help businesses recover from Hurricane Sandy, the city has formulated a loan program for small local companies using a combination of urban enterprise zone [UEZ] funds and aid from NJ Community Capital [NJCC].

NJ Community Capital is a 501(c)3 nonprofit community financial development institution that provides loans to small businesses, schools and homeowners. NJCC will front $750,000 for the loans, and the UEZ will give $100,000 to the cause. The UEZ money comes from the second-generation fund, and $30,000 will remain. The regular UEZ fund still has $350,000 left.

The now-defunct UEZ served to boost business in Asbury Park, offering five-year matching loans to small businesses, enabling Asbury Park businesses to charge shoppers a reduced sales tax rate, and more. The city received money back from state sales tax as part of the UEZ program, and the money sits in a fund that the city uses on occasion. Recently, the city used UEZ funds to purchase bicycle racks to be installed throughout the downtown.

The loans offered through this program will be worth $10,000 to $30,000, to be paid off at a 3-percent interest rate. To secure a two-year loan, a business must be in Asbury Park, must have at least one year of tax returns available, and has to use the funds for a purpose other than debt consolidation, as well as a credit score of 625 or higher.

Businesses are encouraged to apply for funds from the Federal Emergency Management Agency [FEMA] and the Small Business Association [SBA]. But it could take up to six months for businesses to see funds from FEMA, special events coordinator Tom Gilmour said.

 

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