Expert Q&As

Q&A: Caren Franzini, Chief Executive Officer, New Jersey Economic Development Authority Posted By Christina Jelski

The New Jersey Economic Development Authority (EDA) is a state financing and development agency that aims to create jobs and strengthen New Jersey’s economy, providing businesses with the means to expand and contribute to the community. A member of the organization since 1991, Caren Franzini served as deputy director before being named chief executive officer in 1994. Franzini has become a leader for economic recovery, and under her direction the EDA successfully granted over $500 million in financial assistance, incentives, tax credits, and investments to New Jersey businesses in 2008. Franzini has also received numerous awards for her work, including the New Jersey Chapter of NAIOP's Industry Service Award, the New Jersey Business & Industry Association's Paul L. Troast Award, and the Wharton Club of New York's Joseph Wharton Award for Social Impact. Taking time out of her busy schedule, Franzini explained to MGB how the EDA works and how businesses can take advantage of the organization’s opportunities. For more information, visit www.njeda.com or call 1-(866) 534-7789 to speak to an EDA Business Development Officer.

How does the EDA provide financial assistance for businesses, and when does a business become eligible for EDA aid?

New Jersey businesses, including those owned by women and minorities, that seek to acquire, construct or renovate a building, upgrade equipment and machinery, obtain working capital, or refinance higher-interest debt should look into the many programs offered by EDA. The EDA provides financing (bonds, loan participations and loan guarantees) through programs like the Main Street Business Assistance Program, Statewide Loan Pool for Business program and the FastStart for Small Business program. The EDA offers a choice of variable or fixed interest rates and longer repayment schedules than those offered by other lenders. Often working in partnership with banks and other financial institutions, economic development groups, community organizations and other state agencies, the EDA helps borrowers bridge financing gaps and increase their access to capital. EDA programs help to fuel economic growth and job creation in the state and support Governor Jon S. Corzine’s Economic Growth Strategy to nurture the growth of small and mid-size businesses.

Besides its lending programs to encourage business growth, the EDA also manages other programs to stimulate job creation. The EDA is a driving force in encouraging community investments and smart-growth redevelopment, providing a broad range of financing assistance for various stages of the redevelopment process covering planning and predevelopment, infrastructure development, investigation and remediation of brownfield sites and building acquisition, construction and renovations. Additionally, in support of the state’s commitment to promote economic development, job growth and a more secure environmentally responsible energy future through Governor Corzine’s comprehensive Energy Master Plan, the EDA recently unveiled Clean Energy Solutions, a suite of resources to help commercial, industrial and institutional entities grow in the state while reducing New Jersey’s carbon footprint.

How does the EDA go about creating jobs? Do you see an improvement in the job market on the horizon?

The EDA is a state financing and development agency that works to strengthen New Jersey’s economy by retaining and growing businesses through financial assistance, by renewing communities, and by promoting the State’s strategic advantages to attract domestic and international businesses. With its array of financial, technical assistance and real estate development resources, the EDA supports business growth and job creation and retention, and promotes investments in New Jersey’s communities, developing economic opportunities for thousands of businesses. In fact, since its creation in 1974, the EDA has provided nearly $20 billion in bonds, loans, loan guarantees and incentives to businesses and nonprofits throughout the State of New Jersey. Through the first seven months of 2009, the EDA finalized financing and incentive assistance to support the expected creation of more than 5,400 new, full-time jobs.

Statistics released in mid-August by the New Jersey Department of Labor and Workforce Development (LWD) show that the state’s employment grew in July – for the first time in 17 months - led by a gain of 13,000 jobs at private-sector companies. The private-sector growth was tempered by a decline of 7,100 public-sector jobs. Overall, preliminary LWD estimates indicate that there was an increase of 5,900 jobs in July. That’s great news! These new statistics show that Governor Corzine’s economic growth initiatives are working and helping to restore economic confidence and that private-sector employment is trending in the right direction.

Which businesses and markets in New Jersey have been most affected by the economic downturn?

According to the most recent LWD report, six of 10 private-industry supersectors recorded gains in July, while three realized losses and one remained unchanged. The only supersector to record a sizeable decrease in the month of July was trade, transportation and utilities. Considerable job gains, on the other hand, occurred in the leisure and hospitality, construction, professional and business services, and manufacturing supersectors.

The EDA promotes the state's strategic advantages. What are some of these advantages for New Jersey?

Governor Jon S. Corzine’s pro-growth, pro-business initiatives capitalize on New Jersey’s strong advantages and support the state’s aggressive efforts to attract and support foreign investment. A talented workforce that makes New Jersey a leader in innovation, research and development and the state’s location in the heart of one of the world’s larger and more vibrant workplaces between New York City and Philadelphia are among its principal strengths, but there are many other advantages as well. For example:

• About 1,400 multinational businesses representing in excess of 40 countries have sites in New Jersey, and two dozen businesses on the Fortune 500 list have facilities here.
• The state offers a tremendous transportation network that includes 35,000 miles of interconnected roadways that help move commuters and goods efficiently to their destinations, one of the world’s larger and busier airports, and an integrated commuter rail network that carries over 830,000 passengers each weekday.
• A majority of the region’s seaport, trucking, rail and warehouse distribution facilities is located in New Jersey. In fact, Expansion Magazine recently ranked New Jersey first in the United States for transportation, warehousing and highway connectivity and second for railroad service.
• There are 61 colleges and universities in the state. More than 1.7 million New Jersey residents are college graduates and the state ranks seventh in the nation in the number of Ph.D. scientists and engineers per 1,000 workers.
• Traditionally a pioneer state in many scientific disciplines, New Jersey was ranked second in the nation for technology and innovation in 2008. With one of the more extensive fiberoptic networks in the world, the state was also ranked first in broadband telecommunications and broadband penetration last year.

Additionally, with a variety of recreational activities, miles of sandy beaches, forests and mountains, and a range of cultural experiences to suit everyone’s palate, New Jersey was ranked first in the United States for quality of life in 2008 by CNBC.