NJEDA seeks information on establishing a diversified developer fund

The New Jersey Economic Development Authority (NJEDA) provides New Jersey minority- and women-owned developer enterprises (“MWDEs”) with access to capital, particularly in the development of residential and commercial real estate. Governor Phil Murphy and her NJEDA are considering a diversified developer fund to help grow her existing MWDE by addressing barriers to capital. The governor’s proposed budget for his fiscal year 2023 calls for him to invest $65 million in new real estate initiatives. This includes her $20 million to capitalize a fund to support projects led by developers of color. RFIs can be found at https://www.njeda.com/bidding/#rfi.

NJEDA provides comments, questions, recommendations and facts to help authorities better understand the scope and variables associated with access to capital and other forms of financing available to underserved property developers. , is particularly interested in receiving information, ideas and responses.

According to a Black Enterprise article citing Bank of America’s Black Business Owners Spotlight, 82% of entrepreneurs of color say they need to work harder than those who aren’t diverse. According to another survey, nearly 60% of female entrepreneurs say they don’t have as much access to capital as their male counterparts.

“New Jersey is one of the most diverse states in the nation, and the resources we offer developers and business owners should reflect that diversity,” said the Commissioner of the Community Affairs Office. Lieutenant Governor Sheila Oliver said. “Over the past four years, we have established numerous programs that have helped make New Jersey a national model for inclusive and sustainable economic development. It helps us continue to strengthen our efforts.”

Supporting small businesses and enhancing access to capital for minority- and women-owned businesses (MWBEs) is part of Governor Murphy’s Comprehensive Economic Development Plan, the State of Innovation, and a stronger and more equitable economy in New Jersey. is the central pillar of the construction of Two of his five clear goals for the plan are to “close the racial and gender pay gap” and “increase prosperity in New Jersey’s urban and downtown areas with a focus on poverty reduction.” and promote inclusion.”

NJEDA CEO Tim Sullivan said: “Developing programs to help developers, who often don’t have access to funding, is best suited to our efforts to build a stronger, fairer, and fairer New Jersey economy, which Governor Murphy champions. It is important.”

NJEDA supports MWDE, community development financial institutions, community development lending arm of medium and large banks, other mission-based lenders, community development organizations that work closely with MWDE, state and minority and/or women owned real estate. Local government organizations and other stakeholders with perspectives on the structural barriers and disparities encountered by developers in accessing capital. NJEDA is also seeking interest and ideas on solutions to address these obstacles. This includes, but is not limited to, existing programs that address gaps in financing available for residential and commercial development.

“This RFI is an important instrument to help break down the organizational barriers that often prevent MWDEs from accessing the capital they need to be successful. We encourage you to submit information that will help create programs that bridge the racial and gender divides that have existed for so long.”

Both the African American Chamber of Commerce of New Jersey (AACCNJ) and the National Hispanic Chamber of Commerce of New Jersey (SHCCNJ) welcomed the RFI news as a significant step to connect diverse developers with access to capital. .

“We applaud the Murphy administration’s intentions in establishing a diversified developer fund so that black businesses can leverage their resources to bring their plans and ideas to fruition in meaningful ways.” If New Jersey remains committed to this type of strategy, it will gradually close persistent and systemic economic disparities and make the state more competitive.”

“New Jersey Census data reveals that the Hispanic community will make up 21.6% of the state’s population in 2020. Underreporting and changes between 2020 and 2022 will push that number closer to 25%. It is possible,” said Carlos Medina, president and CEO of SHCCNJ. “The New Jersey Hispanic Chamber of Commerce recognizes the important role of Hispanics statewide and recognizes the greatest challenge facing the 120,000 New Jersey Hispanic businesses that underpin the state’s economy. We support all approaches to remove barriers to equity in access to capital.”

All questions regarding this RFI must be submitted in writing by Friday, May 6, 2022 by email to [email protected]. The subject line of the e-mail must be “QUESTIONS-2022 RFI-DI-141 – MWDE RE BARRIERS”. Responses to the questions submitted will be published on or about Friday, May 13, 2022 in his RFI section of his website.

Responses to all RFIs must be submitted in writing by 11:59 p.m. EST on Friday, May 27, 2022 by email to [email protected]. The subject line of the e-mail must state “RFI Response-2022-RFI-DI-141 – MWDE DEVELOPER BARRIERS”.

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