Two UEZ Projects Receive Approval

UEZTwo UEZ projects that focus on small business growth and development, and job creation in Lakewood have received the approval of the Urban Enterprise Zone Authority in Trenton, New Jersey. According to Patricia Komsa, the executive director of Lakewood’s UEZ, the two projects still have to make it past Governor Christie’s possible veto. The programs are the Financial Assistance Program and the Co-op Advertising Program. The Financial Assistance Program is a special loan program that focuses on small businesses, the mom and pops, that may need capital for such business projects as expansion; purchasing equipment or even a vehicle for deliveries; increasing store inventory, or money toward the purchase of a building.

Originally the program made loans up to $25,000 at 3 ½ percent interest for five years to small businesses. Now the program is being expanded up to $35,000 a year with a repay period between five and 10 years at 3 ½ percent interest rate.

Yehuda Abraham, Lakewood’s director of business development and the UEZ co-coordinator, says, “The money for the Financial Assistance Program is coming from second generation funds, money derived from previous loans, and can only be used for loans—so it’s basically a revolving loan program at this point.”
The Co-op Advertising Program is a new program, a supplemental, matching advertising grant that will be funded by money from the Zone Assistance Fund in Trenton. Generally small businesses budget very little money for advertising. Komsa says, “Historically, the first thing small businesses cut is advertising, which is the worst thing to do. Most small businesses don’t realize the power of advertising and marketing themselves; it is advertising that generates interest in a business and draws customers to it. With this matching grant program, we are encouraging businesses to advertise, to get their name out there, to entice customers to shop in their stores.”

In the Co-op Advertising Program, the UEZ will provide 50 percent of the cost of advertising in print and the Internet, for example. Komsa says, “It is important that we are able to measure the effectiveness of an advertising program, a requirement of the state. We have found that electronic media has a great way for us to track, such as a click rate. Those using the print media will actually have to ask their customers how they heard about the business or be able to measure any increase in foot traffic in their store.
Komsa says, “Typically a small business is one that earns under $500,000 gross and has 10 or less employees. The criteria we use for a small business is flexible, but the business must be a certified UEZ business to take advantage of all these programs. If a business is not certified, be sure to call Yehuda Abraham at 732-364-2500 Ext. 5217 to learn how to become certified.”Once the two UEZ projects pass the governor’s veto period, contracts will come from the state several weeks after. Komsa says, “We are looking to roll out these two programs by mid-June. As soon as we can, we will notify all UEZ businesses directly and put out press releases announcing when we will be taking applications.”

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3 COMMENTS

  1. parve…. loans are good, advertising is also good. Overall if thiswould help generate 25 million dollars we may just have taxpayers receiveing what they truly deserved.

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