McKella 280 Inc., a Pennsauken-based provider of graphic design, digital imaging, printing and fulfillment services, is the first company to finalize a line of credit guarantee under a new program established by Governor Jon S. Corzine and the state Legislature to help New Jersey businesses cope with the effects of a national economic downturn.
 
McKella recently closed a $1.2-million line of credit with Susquehanna Bank that includes a $250,000 guarantee from the New Jersey Economic Development Authority (EDA) made under the Main Street Business Assistance Program.  The Main Street initiative enables qualified small and mid-size businesses and nonprofit organizations in New Jersey to access capital by providing state support for bank lending through loan participations and credit enhancements. The EDA-managed program is one of several critical initiatives established under Governor Corzine's Economic Assistance and Recovery Plan to aid businesses during a national recession.
 
Developed in partnership with the New Jersey departments of Banking and Insurance and Treasury and the state's banking community, the Main Street program has been funded by a $50-million state appropriation.  The program has two components - a loan participation and/or guarantee product that is being offered through participating banks and a line of credit guarantee offered for the first time through the EDA's 14 Preferred Lender partners.  To qualify, borrowers must be in business at least two years, maintain jobs in New Jersey and meet other EDA eligibility requirements.  
 
McKella 280 also closed a $2-million loan with Susquehanna Bank that includes a $500,000 EDA participation and a $375,000 guarantee of the bank's portion of the loan under the Statewide Loan Pool for Business program, which will be used to refinance higher-cost debt.
 
"These financings are an excellent example of how EDA resources can be combined to support Governor Corzine's Economic Growth Strategy to encourage the growth of small businesses in New Jersey in this difficult economic climate," said EDA Chief Executive Officer Caren S. Franzini.  "We are delighted that, for the first time, we have been able to offer a line of credit guarantee under the Main Street initiative."

Applications and more details on the Main Street Business Assistance Program are available on the NJ Economic Development Authority Website.