NJ Capital Access Fund: Do You Need Money to Run Your Business?

As a business owner focused on growing your company, you know that working capital is what keeps your doors open. It covers payroll, rent, utilities, supplies — everything you need to operate, even when income is delayed.

The challenge is that maintaining enough working capital can be difficult, especially if your revenue comes in cycles or clients pay on slow terms. That’s where the NJ Capital Access Fund comes in. In this article, you’ll find a clear explanation of what the fund is and which business expenses you’re allowed to use it for if approved.

What Is the NJ Capital Access Fund?

The NJ Capital Access Fund is a loan program created by the New Jersey Economic Development Authority to help small business owners and nonprofits access the working capital they need to operate and grow. It’s backed by federal funding from the United States government and matched with private capital to support New Jersey communities.

Before we go any further, let’s clear up the question that may already be sitting at the back of your mind: "Is my business even eligible for this loan?" It’s a fair question, and the truth is, the NJ Capital Access Fund is designed for a specific group of small business owners and nonprofit leaders. To qualify, your business needs to meet a few core requirements tied to location, size, and financial condition.

Your business must:

• Be located and operating in New Jersey
• Be a small business or nonprofit organization
• Have been in business for at least one year at the time of application
• Have fewer than 50 employees
• Earn $10 million or less in annual revenue
• Be able to demonstrate cash flow or the ability to repay the loan

These standards help ensure the access fund supports businesses that truly need affordable capital to manage daily operations or fuel their next stage of growth. As of this writing, the loan terms are:

• Loan size: Up to $250,000 per small business or nonprofit
• Repayment period: 36 to 60 months
• Interest rates: Fixed, between 8.5% and 10.5%, based on loan length
• Prepayment: No penalty for paying off your loan early

What Can Your Business Use the NJ Capital Access Fund For?

Once your business qualifies, you’ll need to understand exactly how you can use the money. Under the current loan program guidelines, funds can be applied to a range of day-to-day needs that keep your business running.

Eligible Uses Under the NJ Capital Access Fund

• Payroll
  Cover employee wages, keep your team paid on time, and support new hires.
• Rent and utilities
  Use the funds to stay current on lease payments, electricity, water, internet, and other essential operating costs.
• Supplies and inventory
  Purchase inventory, production materials, or everyday office supplies your business relies on.
• Marketing and advertising
  Invest in campaigns that grow your business, whether that’s digital ads, print collateral, or other outreach efforts.
• Technology upgrades
  This includes software licenses, security upgrades, or improvements to your website and digital infrastructure.
• General working capital
  Apply the funds to cash flow gaps caused by slow receivables, delayed client payments, or seasonal slumps.

Even if your business meets all the eligibility standards, keep in mind that eligibility does not guarantee your loan will be approved or funded. Every application goes through a full review by the lender, and funding decisions depend on your documents, financials, and the program’s available resources at the time you apply.

What You Can’t Use the NJ Capital Access Fund For

As you’ve seen, the NJ Capital Access Fund offers flexibility when it comes to keeping your small business running. But that flexibility has limits. The program is designed to support working capital, not personal enrichment or unrelated investments. If you use the funds outside the allowed scope, you risk violating the loan terms, triggering a default, and possibly being asked to repay the full amount early.

To stay compliant, avoid using the funds for the following:

Ineligible Uses

• Personal expenses

You can’t use the loan for non-business costs like your mortgage, personal credit cards, or household bills. This includes car payments and other costs unrelated to your company’s operations.

• Paying dividends or taking distributions

The capital access fund supports your business, not your personal income. You’re not allowed to take the loan and move it into your own pocket as a distribution or bonus.

• Speculative investments

Buying stocks, cryptocurrency, or funding unrelated ventures falls outside the fund’s intent. This is affordable capital meant to stabilize operations, not gamble with market risk.

• Property purchases and improvements

Construction, renovation, tenant improvements, and passive real estate investment are among the ineligible uses.

Final Thoughts

The NJ Capital Access Fund can be a lifeline for small businesses and nonprofits in New Jersey. By providing working capital with straightforward loan terms, the fund helps keep operations steady and supports growth. But remember, this is a loan with obligations. Before applying, consider working with a lawyer who can review your company documents, check your eligibility, and confirm the loan terms fit your existing commitments. Careful preparation with the right guidance will help your business get the most out of this opportunity.

Are you wondering about any of the issues mentioned above? Please email us at info@wilkinsonlawllc.com or call (732) 410-7595 for assistance.

At Wilkinson Law, we give business owners the clarity they need to fund, grow, protect, and sell their businesses. We are trustworthy business advisors keeping your business on TRACK: Trustworthy. Reliable. Available. Caring. Knowledgeable.®

FAQs

Does meeting the eligibility criteria guarantee loan approval?

No. Meeting the basic requirements means you can apply, but approval depends on your financials, documentation, and lender evaluation. The program is competitive, and funds are limited.

Will I need to put up collateral or sign a personal guarantee?

Yes. While you won’t pledge specific collateral, the lender will file a blanket lien on your business assets. Also, any owner with 20% or more ownership must sign a personal guarantee.

Can I use this loan to refinance other debt?

No. Refinancing existing debt is not allowed under the current program guidelines. The loan must support working capital needs going forward.

What if I want to pay off the loan early?

There’s no prepayment penalty. You can pay off the full balance anytime without additional charges.