Sustainable Employment and Economic Development (SEED) Loan Program

The SEED Loan Program is a predevelopment loan pool designed to provide non-profit, community-based organizations wishing to engage in job-generating or neighborhood revitalization activities with flexible financing to cover many of the project-specific predevelopment costs associated with community economic development projects. 

The SEED Loan Program is administered by the by the Housing and Community Development Network of New Jersey in partnership with the New Jersey Community Loan Fund. It is capitalized with funding from First Union Bank, the New Jersey Community Loan Fund,  Sovereign Bank and Fleet Bank.

Eligible Projects: Community Economic Development is defined as real estate-based commercial, retail or mixed-use development, business assistance and development, or other commercial venture undertaken by a nonprofit organization. Other projects will be considered on a case-by-case basis. Special consideration will be given to:

• Projects that fit into an overall plan for neighborhood revitalization and/or connect to a formal workforce development program; and
• Projects that might otherwise experience difficulty in securing predevelopment funding from any other source.

Use of Proceeds: SEED Loan Program funds may be used for 

• project feasibility or market studies
• preliminary architectural plans
• consultant fees
• engineering studies
• environmental evaluations
• title searches
• filing and other fees
• preparation of application for project funding
• site control costs, including option and acquisition cost estimates
• legal fees directly relating to the project
• insurance required to gain access to a property
• business plans
• and other predevelopment costs to be considered on a case-by-case basis.

Loan guarantees to leverage additional financing may also be considered under special circumstances. In most cases, the SEED funds will not to be used to cover staff salaries and related costs.

Terms and Conditions: Generally, loans will not exceed $50,000. The interest rate will be 2% with a term of up to three years. Repayment will be based upon a realistic schedule proposed by the borrower and approved by the SEED Loan Program team.

Eligible Applicants: Eligible borrowers are non-profit community-based organizations n the state of New Jersey, as well as regional and state-wide non-profit organizations in New Jersey that are undertaking economic development initiatives, with a priority given to:

• Members of the Housing and  Community Development Network of New Jersey
• Community-based organizations with a track record of success, but without proven track records in economic development who with to transition into the field. 

Government and quasi-government agencies, housing authorities, and for-profit organizations are not eligible. 

For more information please contact: 

Craig Sawyer, Community Economic Development Director

Housing and Community Development Network of New Jersey

Trenton Office: (609) 393-3752 

Newark Office: (973) 286-0086

E-mail: csawyer@ahnnj.org.