TRENTON, N.J. (July 11, 2014) – In support of the Christie Administration's continuing efforts to grow the State's technology industry, the Board of the New Jersey Economic Development Authority (EDA) approved assistance yesterday to support technology companies at every stage of growth.
"We recognize the significant economic potential that our technology industry yields and we remain committed to offering a continuum of support to ensure we are able to help entrepreneurs, startups and established companies," said EDA Chief Executive Officer Michele Brown. "By creating an environment that catalyzes innovation, we will generate new job and investment opportunities and ensure New Jersey remains a destination for the industry."
In response to the demand for technology-focused shared office space in New Jersey, the EDA will publish a solicitation at the end of July seeking a for-profit developer of technology shared space projects to establish a new or expanded facility for entrepreneurs and startup companies. The EDA would provide a $1 million loan to fund acquisition, improvements and/or fixed assets associated with the development of the facility. Fifty-percent of the loan would be forgiven if specific economic development milestones are met. Respondents will be ranked, with each project standing on its individual merits, against scoring criteria in the following categories: economic development; business model; strategic partnerships; and, management.
The Board also approved a loan under the Edison Innovation VC Growth Fund to support Ivy Sports Medicine, LLC, a private orthopedic device company in Bergen County. Created in 2011 to enhance support of early stage businesses that have attracted funds through venture capital investors, the VC Growth Fund helps companies directly finance uses such as hiring key staff, product marketing and sales. Montvale-based Ivy Sports Medicine, which manufactures and markets innovative tissue growth and repair products, will use the $1 million loan for growth capital needs, including marketing and product development.
Other recent efforts to support the technology industry include the Angel Investor Tax Credit program, which was signed into law by Governor Christie in January 2013. The program provides credits against New Jersey corporation business or gross income tax for 10 percent of a qualified investment in an emerging technology business with a physical presence in New Jersey and that conducts research, manufacturing, or technology commercialization in the state.
For qualified investments made between January 1, 2012 and July 1, 2013, investors were required to complete applications before the first of this month. To date in 2014, EDA received a total of 115 applications, with 89 submitted in June alone. Since EDA began accepting applications to the program last July, 43 investments have been approved representing the injection of $27.4 million of capital into New Jersey companies. At today's Board meeting, three additional investments were approved to support Svelte Medical Systems, Inc., a biotechnology company located in New Providence.
At the meeting, the EDA provided an update on its Commercialization Center for Innovative Technologies (CCIT) in North Brunswick. With successful graduates like Genewiz and Chromocell Corporation, CCIT continues to be New Jersey's leading life sciences incubator. CCIT recently executed a new, one-year lease with Aucta Pharmaceuticals, LLC, a drug development company for novel and generic product development. Additionally, Kamat Pharmaceuticals expanded its presence at the Center, growing to 1,000 square feet of space. Kamat is a technology-based pharmaceutical company that specializes in the development, manufacturing, and approval of novel injectable products and processes.
The EDA Board also approved a Grow NJ award for Frontage Laboratories, Inc. The company helps biopharmaceutical organizations advance their research and development efforts with full service offerings, including bioanalysis, preclinical and clinical studies, analytical testing and product development support. The company is headquartered in Exton, PA and has a clinical trial manufacturing facility in Hackensack. Frontage is currently evaluating locations in Secaucus or Philadelphia, PA to expand its clinical testing to accommodate multiple early stage clinical studies. If the New Jersey site is chosen, Frontage expects to create 50 new jobs and invest nearly $1.8 million. The Economic Opportunity Act of 2013 broadened the reach of the Grow NJ Program, strengthening the State's ability to support projects in targeted industries, including technology, life sciences and health.
EDA Board meetings are typically held at 10 a.m. on the second Tuesday of each month at 36 West State Street in Trenton. The Board meeting schedule, as well as Board agendas and minutes, are available at www.njeda.com. All Board actions will take effect at the expiration of the statutory period for the Governor's review and consideration of the meeting minutes.
The EDA is part of the state's results-driven Partnership for Action, the hub for all economic development activity in New Jersey. The Partnership is comprised of four interconnected and highly focused organizational elements: Choose New Jersey, the Business Action Center, the Office of the Secretary of Higher Education and the EDA.
To learn more about opportunities for business growth throughout New Jersey, visit the state's business portal at www.NewJerseyBusiness.gov.
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