Frequently Asked Questions (FAQ)



What is the New Jersey Redevelopment Authority (NJRA)?

The NJRA is an independent Authority that was created through the New Jersey Urban Redevelopment Act in July 1996. The NJRA became fully operational in March 1997.

Why is the NJRA unique?

The NJRA is unique because we take a lead role in urban redevelopment efforts by offering risk-based capital that most traditional lending institutions are not able to offer. Our creative investment solutions usually bring a project to fruition.

How does the NJRA function?

The NJRA acts as a financing agency to eligible urban communities throughout New Jersey. We work with municipalities, government agencies, for-profits & nonprofit groups, community-based organizations, businesses, private lenders and developers. These groups can approach the NJRA with project ideas and the NJRA will work with them, partnering with other organizations if possible, to structure creative financing to help the project come to fruition. In addition to technical assistance, many financial resources such as loans, loan guarantees, and bonding financing are offered. The NJRA pursues innovative and creative techniques designed to redevelop urban neighborhoods.

What types of programs does the NJRA offer?

The NJRA offers many different programs to urban New Jersey.

New Jersey Redevelopment Investment Fund (RIF)

The NJRA manages this flexible investment fund that provides debt and equity financing for business and real estate ventures. Through the RIF Program, the NJRA is able to offer direct loans, real estate equity, loan guarantees and other forms of credit enhancements.

New Jersey Urban Site Acquisition Program (NJ-USA)

The NJ-USA Program is a $20 million revolving loan fund that facilitates the acquisition, site preparation and redevelopment of properties, which are components of an urban redevelopment plan in NJRA-eligible communities. The NJ-USA Program serves as a catalyst to jump start urban revitalization efforts. The program provides for-profit and nonprofit developers and units of government with a form of bridge financing to acquire title to property and for other acquisition related costs.

New Jersey Pre-Development Loan Program (NJ-PLP)

The NJ-PLP is a $5 million financing pool that provides funding to cover various pre-development activities, including feasibility studies, architectural costs, environmental and engineering studies, legal and other related soft costs for development to occur. This program, an outgrowth of a partnership with Wachovia Bank, offers the flexibility to structure financing at the early stages of development. The NJ-PLP will increase the availability of funding for community economic development projects within the NJRA’s eligible municipalities.

Bond Financing

The NJRA sells bonds to raise capital for making long-term loans at attractive, below-market interest rates to a broad range of qualified businesses and not-for-profit organizations. The NJRA has the ability to issue $100 million of taxable and tax-exempt bonds annually to stimulate revitalization in New Jersey’s urban areas. 

Do you have to be a 501 (c)(3) to work with the NJRA?

No.  An organization does not have to be a 501(c)(3) in order to obtain financing from the New Jersey Redevelopment Authority.  The NJRA works with different groups looking to finance urban redevelopment projects.  The NJRA is able to partner with municipalities, government agencies, for-profit and nonprofit groups, community-based organizations, businesses, private lenders and developers.

Successful projects with the above entities can be seen all throughout New Jersey in cities such as Newark, Elizabeth, Perth Amboy, New Brunswick and Long Branch.

Does the NJRA offer financing to religious organizations?

The NJRA can partner with religious organizations only if it has created a community development corporation (CDC). The CDC must operate as a separate entity from the religious organization.

Is the NJRA similar to NJEDA?

The NJRA and NJEDA are similar in that both are financing authorities created by statute designed to improve the quality of life in NJ. However, the NJRA focuses its efforts specifically in urban communities.

What are the NJRA's interest rates?

The NJRA establishes interest rates that are consistent with the needs of the project under consideration. However, interest is typically below the prime-lending rate.

What is the maximum loan amount?

In order to maintain the flexibility to respond to the needs of the project, the NJRA does not establish set minimums and maximum amounts for loan financing.


How can I learn more about NJRA resources?

You can:
Call our office at 609.292.3739
Email us.