Innovation Zones
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Under the Edison Innovation Fund, the State of New Jersey has created three Innovation Zones throughout the state that encompass state universities, research institutions and related businesses. The zones include areas within the cities of Camden, Newark and the Greater New Brunswick area. Innovation Zones are a collaborative state effort involving the New Jersey Economic Development Authority (EDA), New Jersey Commission on Science and Technology (CST) and other state agencies.
These “technology neighborhoods” are designed to spur collaborative efforts and encourage the rapid transfer of discoveries from the laboratory to the marketplace. Enhanced financial incentives are available to eligible technology and life sciences businesses locating in these zones. Companies within the zones will benefit from enhanced partnership opportunities through the state, coordinated by the CST. Each Innovation Zone is anchored with an existing or planned state-of-the-art technology center, offering companies opportunities to lease office, wet and dry laboratory, and production space at attractive rents. So, whether you are looking for your first office or lab space where you can share resources with other small technology or life sciences companies, or you’re trying to determine where in New Jersey to locate your expanding tech business, the EDA has the resources to help. Enhanced Financial Benefits
Innovation Zone companies are eligible for a variety of funding programs and exclusive zone incentives offered by the EDA and the CST. Click on the links below for more detailed information on each program.
This program allows unprofitable technology and life sciences companies to raise cash by selling New Jersey net operating losses and research and development credits to other New Jersey businesses for at least 75 percent of their value. The program is open to expanding companies with less than 225 employees that have at least 75 percent of their workforce in New Jersey. Businesses must also have proprietary intellectual property.Annual incentive grants are available to businesses seriously considering moving to or expanding in New Jersey. Eligible companies must meet minimum job creation requirements and prove financial viability to qualify for cash grants equivalent to between 10% and 80% of the total amount of the yearly state income taxes withheld from the new employees hired. The BEIP grant must also be a material factor in the company’s decision to relocate or expand in New Jersey.Under the Statewide Loan Pool Program, the EDA can participate in or guarantee up to 50% of a bank loan. On fixed asset transactions the EDA maximum loan participation is $1,250,000 and the maximum guarantee is $1,500,000 for an overall maximum exposure of $2,750,000. For working capital, the maximum loan participation is $750,000 and the maximum guarantee is $1,500,000 for an overall maximum exposure of $2,250,000. Terms generally match that offered by the bank, but are limited to 10 years with amortization up to 20 years.This program offers salary funding for recent doctoral graduates of New Jersey universities to work in small New Jersey technology companies, providing companies with new talent and expertise.Jumpstart is a private, member-lead, angel group that invests in early-stage technology companies in the Mid-Atlantic region. As the leading angel group in New Jersey, Jumpstart members include many successful entrepreneurs, business executives and venture capitalists in the region.NJTC Venture Fund makes catalytic seed, startup, and early stage venture capital investments. The firm actively partners with entrepreneurs to build unique, leading-edge businesses that drive superior returns for investors and economic growth in the community.
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