BUSINESS FINANCING · NJ

Business Financing Guide for Union County, New Jersey

Union County, New Jersey has a diverse and active small-business community — from solo contractors in Elizabeth and Plainfield to real-estate investors in Westfield and Linden. This guide walks you through the types of financing available locally, who typically qualifies, what documents you'll need, and which local lenders and intermediaries actually serve this county. Whether you have a Social Security number or an ITIN, there are real options here. Read carefully, take your time, and reach out to the organizations listed — they exist to help people like you.

§ 01 — What it is

What Business Financing Is — and How It Works in Union County

Business financing is money that a lender, nonprofit, or government-backed program provides so you can start, run, or grow a business. In Union County, this can take several forms: - **Term loans**: A lump sum you repay over a fixed period, typically used for equipment, renovations, or working capital. - **Lines of credit**: A flexible pool of funds you draw from as needed — good for managing cash flow between jobs or tenant payments. - **Microloans**: Smaller loans, usually under $50,000, offered by nonprofits and CDFIs (Community Development Financial Institutions). These are often the most accessible option for newer businesses or owners with limited credit history. - **SBA-backed loans**: Loans made by local banks and credit unions with a federal guarantee from the U.S. Small Business Administration. The guarantee reduces the lender's risk, which can mean better terms for you. These are not loans from the government — a local lender still approves and funds them. - **CDFI loans**: Loans from mission-driven nonprofit lenders focused on underserved communities. CDFIs often work with ITIN holders, immigrants, and businesses that traditional banks have turned away. Union County sits in the Newark-New Jersey SBA district area and benefits from one of the most active CDFI networks in the state. That local layer matters — it means you have real options beyond the big national banks.

§ 02 — Who qualifies

Who Qualifies — Union County's Local Economy and Who Lenders Look For

Union County's economy is built on construction trades, retail, food service, healthcare, logistics, and real estate — industries with strong small-business and self-employed workforces. Elizabeth is one of the busiest commercial corridors in New Jersey; Plainfield, Roselle, and Linden have growing Latino and immigrant business communities; Cranford, Westfield, and Summit have established Main Street retail and professional services. **What lenders typically look for:** - Time in business: Most banks want 2+ years. CDFIs and microloan programs often work with businesses that are 6–12 months old or even at the startup stage. - Credit score: Traditional lenders usually want 650+. CDFIs may work with scores as low as 550, and some have no hard minimum if you can demonstrate cash flow. - Revenue and cash flow: Lenders want to see that income covers the loan payment. Even informal income documented through bank statements can count at some CDFIs. - Collateral: Not always required, especially for microloans. Some programs accept personal assets, business equipment, or receivables. - Immigration status: ITIN holders are welcome at several local CDFIs and credit unions. You do not need a Social Security number or U.S. citizenship to qualify at these institutions. **Special note for solo contractors and real-estate investors:** If you operate as a sole proprietor or LLC, many of the same programs apply to you. Rental income can count as business revenue. Work with a lender who understands self-employed income — not every bank does.

§ 03 — What you need

Documents You Will Typically Need

Every lender is different, but gathering these documents before you apply will save time at almost any institution in Union County: **For all applicants:** - Government-issued photo ID (passport, driver's license, or consular ID such as a matrícula consular) - ITIN or Social Security number - 2–3 years of personal tax returns (or 1 year if the business is newer) - 2–3 years of business tax returns (if you have them) - 6–12 months of business and personal bank statements - Proof of business registration (LLC certificate, DBA filing, or business license from Union County or the State of New Jersey) - Proof of business address (utility bill, lease agreement, or county registration) **For loans above $25,000 or SBA-backed loans:** - Profit and loss (P&L) statement, current year - Balance sheet - Business plan or one-page executive summary describing your business, market, and use of funds - Accounts receivable and payable aging reports (if applicable) - Collateral documentation (deed, equipment titles, etc.) **For real-estate investors:** - Rent rolls or lease agreements - Property tax records - Most recent mortgage statement (if refinancing or leveraging equity) If your records are informal or incomplete, do not let that stop you. Organizations like the Union County SBDC and Intersect Fund can help you prepare financial statements before you apply anywhere.

§ 04 — Where to start in Union County

Local Lenders, CDFIs, and Intermediaries That Serve Union County

These are real organizations with a demonstrated presence in Union County and the surrounding region. Origen Capital is a directory — we do not lend. Always verify current program availability directly with each organization. **CDFIs and Microloan Lenders:** - **Intersect Fund** (New Brunswick, NJ): A leading CDFI in New Jersey that actively serves Union County. Offers microloans from $500 to $50,000. ITIN holders welcome. Strong track record with immigrant entrepreneurs and solo contractors. Also provides free coaching and financial counseling. - **Accion Opportunity Fund** (national, NJ presence): Provides small-business loans from $5,000 to $250,000. Known for working with underserved business owners, including ITIN holders and women-owned businesses. Bilingual staff available. - **New Jersey Community Capital (NJCC)**: A statewide CDFI focused on affordable lending and community development, including small-business and real-estate investment projects in under-resourced communities like parts of Elizabeth and Plainfield. - **Cooperative Business Assistance Corporation (CBAC)**: A South Jersey-based CDFI that operates in the greater Newark/Union County area. Focuses on businesses that cannot access traditional financing. **SBA District Office:** - **SBA New Jersey District Office** (Newark, NJ): Covers all of Union County. Can connect you with SBA-approved lenders, free counseling through SCORE, and the Small Business Development Center (SBDC) network. They do not lend directly, but their referrals to approved local lenders are valuable. Phone: (973) 645-2434. **Small Business Development Center:** - **Rutgers SBDC — Union County Outreach**: Provides free one-on-one advising, help preparing loan applications, and connections to lenders. Hosted in partnership with Union County College. Bilingual advisors available for Spanish-speaking clients. **Local Credit Unions:** - **Affinity Federal Credit Union** (Basking Ridge, NJ, serves Union County): One of NJ's largest credit unions. Offers small-business loans, business checking, and lines of credit. Member-owned, typically more flexible than large banks on credit history. - **Columbia Bank and MCB (Magyar/Columbia)**: Community banks with Union County branch presence and a history of SBA 7(a) lending to small businesses in the region. - **Investors Bank (now Citizens Bank)**: Has branches in Union County and has historically participated in SBA lending programs in New Jersey. **ITIN-Friendly Lenders:** - Intersect Fund and Accion Opportunity Fund explicitly accept ITIN numbers in lieu of SSNs. - Some branches of **Provident Bank** and **Columbia Bank** have worked with ITIN holders for business accounts and small loans — ask directly at the branch level, as policies can vary. **Union County Economic Development:** - **Union County Office of Economic Development** (Elizabeth, NJ): Administers local small-business grant and loan programs, including occasional revolving loan funds. Contact them to ask about current availability of county-level programs, which change year to year.

§ 05 — What to avoid

New Jersey State-Specific Programs and Regulatory Notes

New Jersey has its own layer of financing programs and rules that matter for Union County business owners: **New Jersey Economic Development Authority (NJEDA):** - The NJEDA is the state's primary economic development agency and runs several programs relevant to small businesses: - **Main Street Lenders Program**: Connects small businesses with CDFIs and community lenders for loans from $50,000 to $5 million. - **Small Business Lease Assistance**: Helps cover commercial lease costs for qualifying businesses — particularly useful for brick-and-mortar operators in Elizabeth or Plainfield. - **Entrepreneur Guarantee Program**: A state-backed loan guarantee that helps lenders approve borrowers who might otherwise be declined. Works similarly to an SBA guarantee but at the state level. - **NJ Ignite**: Grants for early-stage businesses co-located in approved incubators. - NJEDA programs often stack with SBA programs, meaning you may qualify for both. **State Licensing and Registration:** - New Jersey requires most businesses to register with the **NJ Division of Revenue and Enterprise Services**. You'll need a Business Registration Certificate (BRC) before many lenders will process your application. - Contractors in Union County must hold appropriate **NJ Home Improvement Contractor (HIC)** licenses and carry liability insurance. Lenders may ask for proof of licensure. - LLCs and corporations must file an **Annual Report** with the state. Lapsed filings can freeze your business accounts and complicate loan applications. **Union County Business Registration:** - Some municipalities within Union County (Elizabeth, Plainfield, Rahway) require a local **business license or municipal permit** in addition to state registration. Check with your municipal clerk's office. **Tax Considerations:** - New Jersey has a **Corporation Business Tax (CBT)** and a **Pass-Through Business Alternative Income Tax (BAIT)** that can affect LLC owners. Talk to a local CPA or the SBDC before taking on significant debt to understand your tax obligations.

§ 06 — Ask a question

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