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FOR IMMEDIATE RELEASE
Small Businesses Find Seed Money For GrowthApril 16, 2009 Dave Wiggins is one of those lucky guys who gets to turn his hobby into a full-time job. Next month, the amateur woodworker will complete the purchase of A-1 Millwork, a struggling manufacturer of doors, staircases and premium moldings in Waterford using $1 million in borrowed money, at a time when most loan officers have nailed their doors shut. His angel is the New Jersey Economic Development Authority, which came through with a $510,000 loan at 3 percent interest over 10 years. The rest is from Liberty Bell Bank of Moorestown. Wiggins of Medford credits Liberty Bell Bank with introducing him to the EDA's arsenal of financial tools. Wiggins is among a growing number of South Jersey businesses that are cashing in on an array of government programs designed to give businesses incentive to remain and grow in the state. Some were created this year as life preservers in the recession. Others have been available for years, but now the EDA staff is seeing heightened interest. "Without the EDA, in this business climate, this deal would never have happened," said Wiggins, who describes himself as semi-retired. He has operated a truck dealership and was a distributor of heavy equipment. Before the housing crisis, A-1 averaged about $4 million a year in revenues. Last year, the number dropped to $2.3 million. The 35-year-old company has 13 employees. "I know I can run a company again and breath new life into it," said Wiggins, who has been crafting this deal for two years. Other programs such as, Invest NJ and a new program aimed at revitalizing New Jersey's main streets, are being tapped by small businesses. Invest NJ, for example, offer grants, not loans, up to 7 percent of the cost of capital investments, plus grants of $3,000 for each new job created. EDA spokeswoman Erin Gold said that Invest NJ has generated such demand that a waiting list had to be created in March. An Italian market on Route 38 in Mount Laurel was the first recipient, of the Main Street business assistance program designed to compensate for the credit freeze. Abbruzzi and Giunta's Italian Market & Catering recently closed on a $1.5 million loan with Cornerstone Bank that includes a partial guarantee from the EDA. "We're going to use the funding to consolidate existing financing, expand our catering operations and grow in the community where we established ourselves 18 years ago," said Joe Abbruzzi. Biopticon Corp., a medical device company in Camden's Waterfront Technology Center, received a $200,000 note from the Edison Innovation Fund, which was created to spur innovation in technology and the life sciences. The money is expected to spur private investment and to create 11 jobs. The EDA also is willing to show forbearance to companies that received loans in the past, but are unable to make payments due to market conditions. MLEADERBOARD, Inc., another Camden start-up, received $1 million in investment funds two years ago to make a delivery system for golf information. Recently, the EDA extended the grace period from February to August for the company to begin paying back. "The economy has really affected their business, so we agreed to monitor them and give them more time," said Gold. Creative financing does not stop with loans. State and federal business tax incentives also are available. Democratic U.S. Rep. Rob Andrews of Haddon Heights, estimated Tuesday that tax incentives under the federal stimulus bill -- if embraced to the maximum -- could generate between 3,000 and 4,000 jobs within a few years in Burlington, Camden and Gloucester counties. Reach Eileen Stilwell at (856) 486-2464 or estilwell@courierpostonline.com
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