About GNEC

GNEC is a non-profit CDFI (Community Development Financial Institution) established in 2005. Our mission is to help the traditionally underserved small business entrepreneurs located within New Jersey grow their businesses. We concentrate mostly in the areas of NJ which have been historically underfunded and/or underserved.

GNEC provides ONLY small business loans. ALL our current loan programs offer a fixed-interest rate and for a certain term frame. We do NOT offer personal loans, loans for real estate, lines of credit, credit cards, etc. We provide funding for micro and smaller businesses with no more than $1.5 million in annual revenue and the purpose of the loan must be business-related.

GNEC receives grants and funding (directly or indirectly) from the State and Federal levels of government and from entities such as banks, insurance companies, philanthropists, and individual donors. Oftentimes, the “funder” (the entity providing the funds) will give us guidelines as to where and under what specific terms to lend out their funds. Our programs are created to help business owners obtain financing under the best possible terms. Funders may also provide funds to lower the interest rates on certain programs (subsidized rates). That is why many of our loan clients receive interest rates and terms which are much better than what the traditional business loan marketplace can offer.

NO, there is no guarantee! GNEC receives grants and funding (directly or indirectly) from the State and Federal levels of government and from entities such as banks, insurance companies, philanthropists, and individual donors. Many renew their generous donations but sometimes they don’t. ALL the programs we have are subject to there being enough funding available to implement them. We will continue to fund business owners with highly subsidized low-interest rates UNTIL the money runs out (if it does). We always recommend that business owners apply and get through the process as quickly as possible to ensure enough resources are still available for them.

GNEC Loan Programs

The maximum loan amount for 2025 is $100,000.  Our loans are broken up into two different programs.

  • DreamMaker loans which range between $1,000 and $30,000.
  • Business Builder loans which range from $30,001 to $100,000.

Besides the loan amounts, there are two important differences between the DreamMaker loans and the Business Builder loans.

DreamMaker loans do NOT require a pledge of collateral as a guarantee for the loan.  Business Builder loans (loans above $30,000) on the other hand, will require a pledge of collateral as a guarantee for the loan.  As is typical to all business loans, all our GNEC loans (both the DreamMaker and Business Builder loans) will require UCC-1 filings and a personal guarantee of repayment.  The difference between them here is the pledge of a specified collateral as a loan guarantee.

The other difference between our loan programs is how our approval process works. The decision to either approve or deny a DreamMaker loan ($1,000 to $30,000) is done “in-house”.  Our Executive Director, Business Development Director, and both senior underwriters will be making the final decision as to whether to approve or deny the loan request.  If approved, we can then immediately schedule a closing date.

Business Builder loans (loans above $30,000) on the other hand, must go through an external credit committee to obtain the final approval.  So, after we approve the loan in-house within GNEC, we must then take an additional step. We must set up an appointment with an external and independent credit committee to present all the details of the loan request. If the credit committee approves the loan with a majority decision, then we can proceed forward to schedule a closing date.

ALL loans over $30,000 (Business Builder loans) must be 100% collateralized by the pledged assets as a guarantee for the loan. The value given to the collateral will be 80% of its fair market value.

For example: If your business is purchasing equipment, the loan amount will be maxed out at 80% of the cost for the equipment. If you are pledging real estate, the amount of collateral equity available will be 80% of the value of the home minus any mortgage(s). So, a home worth $500,000 with a $350,000 mortgage will support up to a $50,000 loan. ($500,000 home value x 80% = $400,000, and then $400,000 – $350,000 mortgage = $50,000 left for collateral purposes).

No. All loans over $30,000 (the Business Builder loan program) require a pledge of collateral as a guarantee for the loan. Without proper collateral available or pledged, the loan limit will be $30,000 (DreamMaker loan program).

Absolutely not!  NONE of our current loan programs have any penalties or extra costs of any kind for being paid early. A borrower can pay off the loan in full or send in extra money at any time without any kind of penalty.

There is only one fee associated with our loans:

  • $100 document preparation fee for DreamMaker loans ($30,000 or less)
  • $250 document preparation fee for Business Builder loans (over $30,000)

We will collect this fee AFTER your loan has been approved and we are ready to go towards the closing.  Therefore, if your loan is denied for any reason, you will NOT owe us any money.  Even if you are approved and then change your mind, you will not be charged this fee.  This is a “closing fee” to cover our costs of document preparations and filing fees.  One more way we are determined to help the small business owner.

At the present moment, the subsidized interest rate we offer on our business loans is 5.99%.  That rate will be fixed and GUARANTEED throughout the entire term of the loan (provided loan payments are made on time).  The term (length of time to pay back the loan) is determined by the loan program. DreamMaker loans are typically amortized over 4 years while Business Builder loans are typically amortized over 5 years.

Loan Qualifications

We provide business loans for businesses which have a minimum of 12 months of revenues. We sometimes consider a start-up business as an exception, but the business model must make sense to our underwriters and the owner(s) must be very well qualified. The owner(s) must have very good credit (preferably over 700 FICO) and show they have enough CURRENT income to qualify for the loan. That income can be from a job, Social Security income, pension, disability, etc. As long as the current income is expected to continue on, we will be able to use it to help the business owner(s) qualify for the loan.

Yes. We can provide business loans for businesses that are registered to or operated from the home. We will qualify these businesses the same way as if they were a brick-and-mortar business.

Yes. GNEC does NOT provide funds for businesses in the industries of pornography, marijuana, or guns. And of course, we won’t fund any business dealing with any illegal products or services.

From time to time, there may be an industry or sector of the economy which we place restrictions on. At this time, GNEC is not approving applications for loans related to the Trucking industry.

Just like all traditional lenders, the GNEC underwriters will look at the overall strength (or weakness) of the loan applicant based on the traditional “3 C’s of lending”.

  • Capacity to pay back the loan
  • Credit history of the borrower(s) and their FICO scores
  • Collateral to serve as a guarantee to the loan (for any loan over $30K)

Capacity shows the ability of the borrower(s) to be able to pay back the loan. It is calculated by taking all the income of the borrower(s) and dividing it by all their financial obligations (including the new proposed loan payments). A borrower may have substantial income but if their monthly obligations are substantial as well, it may show they don’t have the “capacity” to pay back the loan. Underwriters need to see the financial figures, and this is why they ask for documentation.

GNEC is very flexible compared to traditional business loan underwriting. We will consider ALL sources of income to help the borrower(s) qualify, not just their business income. And we also take into account the deposits made into bank accounts, not just go by what is stated on the tax returns.

The borrower(s)’ credit history and FICO scores are VERY important to all lenders. Most lenders will require a minimum FICO score and if a borrower is below that threshold, the loan will be automatically denied.

GNEC would prefer to see a minimum FICO score of 650 but we can sometimes be flexible, so it is not written in stone. What we don’t want to see is a history or track record of late payments scattered throughout the credit report. We also can NOT approve any borrower who has filed or been discharged of bankruptcy within the last 2 years.

Late payments will need an explanation. Sometimes life circumstances make things inevitable. That’s OK, as long as the explanation makes sense to our underwriters and the issues which caused the late payments have been resolved.

It is a “soft pull” and therefore will not affect your credit score.

A pledge of collateral as a guarantee for the loan is required on ALL Business Builder loans (loans over $30,000). The Business Builder loans must be 100% collateralized. The value given to the collateral used as the loan guarantee will be set at 80% of its fair market value.

For example: If purchasing business equipment, the loan amount for the equipment will be no more than 80% of the cost. So, if the equipment being purchased costs $50,000, the most GNEC will be able to lend against it is $40,000 (80% of the $50,000). If a borrower is pledging real estate as collateral, the amount that can be lent against it will be 80% of the value of the home minus the mortgage(s).

So, a home worth $500,000 with a $350,000 mortgage will support up to a $50,000 loan ($500,000 x 80% = $400,000 and then, $400,000 – $350,000 mortgage = $50,000 maximum loan amount).

Application Process

Our application process is straight forward. The first thing you want to do is determine which loan program you would like to apply for depending on the loan amount (DreamMaker or Business Builder). Remember that Business Builder loans will require a pledge of collateral as a guarantee for the loan. If you do not have any collateral to pledge as a loan guarantee, you can only apply for the DreamMaker loan (maximum $30,000).

Choose the “Apply” link under the appropriate loan type and begin the application process. DreamMaker Loan ($1,000 to $30,000) or Business Maker Loan (over $30,000 and up to $100,000).

PLEASE NOTE: the online application link will always state a rate of 10.99%. This is NOT the rate you will receive. This is the “true” rate of the programs without any subsidies paid on your behalf.

Each page/form of the application will have information (explaining in detail) what is needed. Please read the notes to make sure you are properly providing what is being requested.

As you submit the information, our underwriting team will look at it and mark that task/item “complete”. You will receive an e-mail alerting you that it has been checked off. If there is anything missing or incorrect, we will send you an email letting you know what was wrong. Either way, you will be informed every step of the process. We are here to assist you. Please allow us 1-2 business days to review and clear the items as you submit them.

Any questions regarding the application can be directed to:
Vincent Tanner (English) – vtanner@GNEC.org
Connie Astudillo (Spanish) – castudillo@GNEC.org

No. We can only provide one loan at a time for any borrower(s). Loans are filed in our records based on the owner’s Social Security number (or ITIN).

Yes. But we can only offer 1 outstanding loan at a time. So if a borrower wants access to more money through a loan, the borrower(s) must pay off the outstanding balance on their current GNEC loan at the closing. In other words, if you presently owe $10K on your current loan and would like an additional $15K, you can apply for $25K. We’ll have your $10K balance paid off at closing and you will be given the $15K difference. Your new loan would be $25K. Also note that you must wait at least 12 months and have a record of ALL on-time payments to be able to apply again for additional money.

In addition, GNEC is not designed to be your future “go-to” lender. We have limited funds and are here to help businesses in that period before they can easily access money from traditional lending sources. Unless we get an exception approved, we will only provide 2 loans during the life of a business.

These are the documents that will always be needed for underwriting:

  • Last 3 years personal tax returns
  • Last 3 years business tax returns (or since company was formed if less than 3 years)
  • Last 12 months personal bank statements
  • Last 12 months business bank statements

These are the documents that MAY be needed for underwriting:

  • Business Plan
  • Paystubs (if working outside of the business)
  • Year-to-date Balance Sheet and Profit & Loss Statement

VERY IMPORTANT:  Our application portal will provide you with details on each document that is needed. It is important that you take a minute (before beginning) to read the information provided for each page of the application. If there are additional questions, please reach out to us.

Vincent Tanner (English) – vtanner@GNEC.org
Connie Astudillo (Spanish) – castudillo@GNEC.org

Any person who is an owner of 20% or more of the corporation must be part of the application process. This means that everything requested and required will pertain to them also. GNEC will need each owner’s permission to run their credit, their photo ID’s, their personal tax returns, etc.

Each page of the application has detailed instructions and lots of helpful information to help you as you fill out the application. PLEASE read the instructions on every page before commencing on that page; it will help you tremendously. If there is anything we have not covered or if you are unsure, please feel free to reach out to us right away. We are here to help.

Vincent Tanner (English) – vtanner@GNEC.org
Connie Astudillo (Spanish) – castudillo@GNEC.org

Each time you submit a form or upload a document on the application portal, our underwriters will review them within 2 business days (oftentimes quicker but dependent on volume at the time). Once the underwriter reviews and marks the item as “complete”, you will receive an email letting you know. If there is an issue with what you submitted, you will receive an email letting you know as well.

Whenever you go online to your application account, you will see at a glance what items are still outstanding and which items are checked off as complete. Your goal is to complete the outstanding items as soon as possible so we can get your file into underwriting review as quickly as possible. Keep in mind, that anything you recently submitted may not be marked as “complete” yet. Please allow us 2 business days to review any document or form you have submitted.

Applications which have been completed (where everything requested has been submitted and marked-off as complete) are then underwritten and scheduled for an in-house full review for the following week. These in-house reviews for approval (or denial) take place each Tuesday for the applications that were completed and underwritten the week before.

Closing Process

The amount of time it takes to close varies depending on:

  • The loan program. Business Builder loans take a little longer than DreamMaker loans because we have to coordinate a meeting with multiple people of the external credit committee for the final approval.
  • Volume of business during the time of application (more applications to review may equate to a longer turnaround time).
  • How long it takes for the borrower(s) to supply all the documents required to underwriting (the quicker we can review the documents, the quicker we can approve and close the loan). If you would like your business to receive the money quickly, be sure to finish the application as quickly as possible.

Please Note: We cannot begin to underwrite a loan UNTIL we have ALL the required documents needed for review. Once we have received all the required documents for underwriting, we will work as quickly as possible to review the loan request and go into closing if approved.

All closings take place on Thursdays at our office in Newark, NJ. The time of the closing will be scheduled by our closing department AFTER all closing conditions are submitted. You will receive an email from the closing department letting you know the time scheduled.

There are always a few closing conditions requested before we can close. These are the typical closing conditions (although on rare occasions there may be more):

  • After you review and approve, please sign the commitment letter (which will outline the terms of the loan).
  • Payment of the documentation preparation fee (closing fee)
    • $100 for DreamMaker Loans ($30,000 or less)
    • $250 for Business Builder Loans (over $30,000)
  • We’ll need a “Void” check from your business checking account. This will be used for the ACH draft (Automatic Clearing House). All monthly payments are due on the 1st of the month and are paid automatically through deductions from your business checking account.
  • Business Liability Insurance to list us as “Additional Insured” or “Loss Payee”. The wording will depend on whether we are taking collateral as a guarantee for loan. We will provide you with the instructions for your insurance agent upon approval of the loan.

Yes. ALL businesses will be required to have Liability Insurance before we can close. As a business owner, this is something which is necessary. Liability Insurance protects a business from an unforeseen event or lawsuit. Keep in mind, even if a lawsuit against your business is frivolous, without Liability Insurance, you may need to hire an attorney and take time away from the business to settle the claim. We will send you simple instructions for you to forward to your insurance agent. Being that we are providing you a business loan, we need to be listed on your policy.

The day of the closing, all the business owners (of 20% or more ownership) must be present to sign as borrower. Each borrower must bring in a government issued photo ID (Driver’s License or Passport). They must also bring in their Social Security Card (or ITIN documentation). They will need to provide the name, address and phone number of a relative NOT living with them for us to keep on file (in case we can’t reach you).

Yes, BOTH loan programs require a UCC-1 filing and a Personal Guarantee document to be signed (as typical with business loans). Business Builder loans will also require a lien placed on specified collateral to be pledged as a guarantee for the loan.

All payments are due on the 1st of the month. If the closing takes place during the first half of the month (on the 15th or earlier), the first payment will begin on the 1st of the following month. If the closing takes place after the 15th of the month, the first payment will be made on the month after the following month (skip a month).

You will not need to write a check monthly. All payments will be made via ACH draft (Automatic Clearing House) on the 1st of every month. This is why we will require a “Void” check from your business account; to know which account we will use to automatically make your payments.

Absolutely yes. You can send additional money to every monthly payment or send a lump sum at any time. Any extra money (above the interest charge) will be applied to the principal balance you owe at the time. All you need to do is send us an email for confirmation, so we have your desire in writing. Our loans do NOT have any pre-payment penalties nor charges of any sort.

Yes. ALL loan payments (whether made on time or late) will be reported to the credit agencies. Of all the “C’s” of lending, Credit is generally the MOST important when it comes to borrowing money. Making on-time payments will increase your credit score and credit worthiness over time. It will make it much easier to obtain future loans. Unfortunately, making late payments will have the opposite effect. It will make it much harder to obtain additional money in the future for your business.

If you have a question that is not addressed here, please let us know. Email us at OVillares@GNEC.org, and we will answer it within 24 hours and perhaps add it to this list of Q&A’s. 

Thank you.