Edison Innovation Green Growth Fund Loans

Program Overview

Implementing Sector State
Category Financial Incentive
State New Jersey
Incentive Type Industry Recruitment/Support
Web Site https://www.njeda.com/edison-innovation-green-growth-fund/
Administrator New Jersey Economic Development Authority
Funding Source New Jersey Societal Benefits Charge (public benefits fund)
Start Date 05/23/2011
Eligible Renewable/Other Technologies Solar Photovoltaics, Wind (All), Biomass, Landfill Gas, Tidal, Wave, Wind (Small), Fuel Cells using Renewable Fuels
Eligible Efficiency Technologies Lighting, Furnaces, Boilers, Air conditioners, Energy Mgmt. Systems/Building Controls, Other EE
Applicable Sectors Commercial, Industrial, Federal Government
Incentive Amount Varies; loans from $250,000 - $2 million available
Maximum Incentive Maximum Loan: $2 million (1:1 cash match required from non-state grants, deeply subordinated debt or equity)
Performance Grant Conversion (end of loan term): up to 50% of loan amount
Terms Fixed five-year term; interest rates of 2%.
50% loan conversion to a performance grant may occur at the end of the 5 year period.

Summary

Note: The energy efficiency technologies indicated as “eligible” above are examples of possible eligible technologies listed on the program web site. Other products that conserve electricity or natural gas may also be eligible. The renewable energy technologies listed above are those deemed “Class I Renewable Energy” under the New Jersey renewables portfolio standard (RPS). For more detailed definitions please see the program web site.
 
The Edison Innovation Green Growth Fund (EIGGF), administered by the New Jersey Economic Development Authority, offers loans to for-profit companies developing Class I renewable energy (as defined under state renewables portfolio standard) and energy efficiency products. In order to qualify for a loan, the product in question must have already achieved “proof of concept” and have begun to generate commercial revenues.
 
Eligibility
  • Energy Efficiency Products: Limited to those which conserve the end use of gas or electricity. Energy efficiency equipment and technology that reduce electric or natural gas consumption also apply.
  •  Class I Renewable Energy: Photovoltaic, solar, wind energy, renewably fueled fuel cells, wave, tidal, sustainable harvested biomass, and methane gas from landfills qualify.

Requirements

 

  • Must employ 75% of W-2 employees in New Jersey, or commit to growing 10 high-paying jobs (minimum salary of $75k) over two years
  • Must have strong intellectual property position and/or satisfactorily available collateral and cash flow.
  • Must have a full-time management team (working only at that company) with domain experience.
  • Founders/management team must have equity in the company (sweat equity not considered)

Use of funds: Growth capital to advance newly discovered energy efficient, renewable energy or supply chain products that will assist Class I renewable energy or energy efficient technologies in becoming competitive with traditional sources of electric generation.

  • Up to $1.25 million for fixed assets, or up to $750,000 for working capital for a term of up to 10 years, with the option of either a fixed or variable below-market interest rate.
  • The EIGGF offers loans up to $2 million with a performance grant component to support technology companies with Class I renewable energy or energy efficiency products or systems that have achieved “proof of concept” and successful independent beta results, have begun generating commercial revenues, and will receive 1:1 match funding by time of loan closing.
 
 
The EIGGF is funded by the state societal benefits charge (SBC), thus proposed projects in municipalities that do not pay into the SBC are not be eligible for funding under this program. In order to be considered for funding, applicants must submit an Eligibility Intake Form. For additional details please see the program website, which contains the program solicitation, application information, and FAQs.
 

Contact

Edison Innovation Green Growth Fund
Organization:
New Jersey Economic Development Authority

 

Phone:
(866) 534-7789
E-Mail:
EIGGF@njeda.com