Guide to Doing Business in New Jersey State of New Jersey

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Guide to Doing Business in New Jersey State of New Jersey Powered By Docstoc
					    Guide to
Doing Business in
New Jersey
Table of Contents

Section 1                                        Section 4
Starting a New Business                     3    Franchising                                     45
Getting Started                             3    What is Franchising?                            45
Elements of a Business Plan                 4    Investing in a Franchise                        46
Construction of a Business Plan             4
Sample Business Plan Outline                6    Section 5
Business Registration                       7    Procurement Opportunities                       49
                                                 Set-Aside and Certification Office              50
Planning                                    8
                                                 Certifying Agencies                             51
Registering a Trade Name and
                                                 Surety Bonds                                    54
Incorporation                                9
                                                 U.S. Small Business Administration’s
Regulations and Licenses                    10
                                                 Government Contracting Program                  56
Marketing: The Pathway to Profits           10
                                                 How to Be Paid Promptly by the
Trademarks and Copyrights                   11
                                                 State of New Jersey                             57
Patents in Brief                            12
                                                 Additional Procurement Resources                59
Reducing the Risk                           13
Forms of Business Organizations             14   Section 6
Sole Proprietorship                         14   Exporting                                       61
Partnership                                 14   Export Financing                                66
Corporation                                 16   Other Sources of Financial Assistance           67
Advantages and Disadvantages of
Different Forms of Business Organizations   16   Section 7
Choosing a Location                         18   Resources                                       69
Starting A Business Checklist               18   Regional Alliance for Small
                                                 Contractors, Inc.                               70
Section 2                                        The Procurement Technical Assistance
Costs of Doing Business                     21   Center at New Jersey Institute of
New Jersey Sales Tax                        21   Technology                                      72
Income Tax Withheld                         21   The New Jersey Small Business
Insurance                                   23   Development Centers                             73
Employee Insurance                          24   Business Management Counseling from
Record Keeping                              26   Service Corps of Retired Executives             77
Professional Help                           26   Frequently Utilized Telephone Numbers           80
Other Employee Issues                       27
Industrial Site Recovery Act- ISRA          28

Section 3
Financial Information                       29
Small Business Start-up Money               29
How Much Money To Borrow                    31
State Programs of Financial Assistance      32   Disclaimer:
Federal Programs of Financial Assistance    37   The data in this guide was updated in September of 2010
                                                 and was current at the time of publication.   This guide
                                                 is not intended as an exhaustive study on starting a
                                                 business. When specific questions arise contact the New
                                                 Jersey Business Action Center at 866-534-7789 or log onto
Section 1: Starting a New Business

Getting Started
Most entrepreneurs are not adequately
prepared to go into business. While they have
the motivation, desire and talent, many have
not taken time to properly investigate and
research the business they are interested in

Reasons to Start a Business

Before starting a small business, list the reasons
you want to go into business. Use a specific and         The following best helps answer the question,
systematic approach to build a plan from which           what niche will the business fill?
success can be evaluated.
                                                           • Is your idea practical and will it fill a need?
                                                           • What/who is your competition?
Some common reasons for starting a business
                                                           • What is your advantage over existing
                                                           • Can you deliver a higher value/better quality
    • Want to be your own boss
    • Want financial independence
                                                           • Can you create a demand for your business?
    • Don’t work well with others
    • Dislike policy and procedures
                                                         The last step in the model is the pre-business
    • Want creative freedom
                                                         checklist. Answer the following questions and
    • Want to fully use your skills and knowledge
                                                         write down the responses before developing
                                                         your plan:
To determine the right business, answer the
following questions:
                                                           • Describe the business you are interested in
    • What do you like to do with your time?
                                                           • What services or products will you sell?
    • What technical skills have you learned or
                                                           • Where will you locate?
                                                           • What skills and experience do you bring to
    • Will you have the support of your family
                                                             the business?
      and/or spouse? Friends?
                                                           • What will be your legal structure?
    • How much time do you have to run the
                                                           • What name will you go by?
                                                           • What equipment or supplies will you need?
    • Do you have any hobbies or interests that
                                                           • How will your business records be
      are marketable?
                                                           • What insurance coverage will be needed?
                                                           • What financing will you need?
                                                           • What are your resources?
                                                           • How will you compensate yourself and your

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Starting a New Business

Do I Have What It Takes to Own/Manage a             Define the Business Plan
Small Business?
                                                    It may seem silly to ask, “What business am I
Future business owners will be the most             really in?” But some owners/managers have
important employers, so an objective appraisal      gone broke because they never answered the
of strengths and weaknesses is essential. Some      question.
questions to ask yourself are:
                                                    The following sample business plan outline
  • Am I a self-starter?
                                                    may be of assistance in creating the company’s
  • How well do I get along with a variety of
                                                    business plan.
  • How good am I at making decisions?
                                                    A Business Plan is:
  • Do I have the physical and emotional
    stamina to run a business?                        • The management and financial “blueprint”
  • How well do I plan and organize?                    for a business start-up and profitable
  • Are my attitudes and drive strong enough            operation.
    to maintain motivation?                           • Written by the business owner with outside
  • How will the business affect my family?             help, as needed.
                                                      • The explanation of how the business
                                                        will function and depicts its operational
Elements of a Business Plan                             characteristics.
                                                      • A detailed view of how the business will be
What is a Business Plan and Why Do I Need
                                                        capitalized and managed.

A business plan precisely defines the business,
identifies goals and serves as the firm’s résumé.

The basic components include a current and pro
forma balance sheet, an income statement and
a cash flow analysis. It helps allocate resources
properly, handles unforeseen complications and
helps businesspeople make the right decisions.

Because the business plan provides specific
and organized information about the company
and how it will repay borrowed money, a good
business plan is a crucial part of any loan         Construction of a Business Plan
package. Additionally, the plan can tell sales
                                                    1. Business Description
personnel, suppliers and others about the
                                                       Includes your business name, address and
company’s operations and goals.
                                                       owner identification and identifies goals and
                                                       objectives. Further, the description clarifies
                                                       why the business person wants to be in

Starting a Business

2. Products and Services
   Describe what the company is selling and
   why. Explain, in detail, what products and
   services will be offered.

3. Sales and Marketing
   Sales and marketing are the core of
   business rationale. A business plan should
   address several basic questions:
                                                        Whether your company is young or established,
    • Who and how large is your market?                 the business plan should include:
    • How will the business be competitive?
                                                            • Income statement and balance sheet for
    • What pricing and sales terms are
                                                              the last two years
                                                            • Projected income statement and balance
    • How will the business market its products
                                                              sheet for the next two years
      and services?
                                                            • Projected monthly cash flow statement
                                                              for 12 months
4. Operating Requirements
   The plan should identify and describe the            The plan should include an explanation of
   equipment, facilities and people necessary           all projections. If you feel your finance or
   to generate products and services. How               accounting knowledge is not sufficient to
   will the products and services be produced           prepare these statements you should seek
   and made available to the customer?                  professional assistance. The bottom line is:
                                                        will, or does, the company make a profit?
5. Financial Management
   This is the most critical part of any business       6. Concluding Narrative
   plan. Businesspeople will establish vital               This segment of the plan should summarize
   schedules that will guide the financial                 business goals and objectives and send a
   health of the business. For a new business,             message that owners are committed to the
   the plans should include:                               success of the business.

    • Projected “start-up costs”
                                                        Put Your Best Foot Forward
    • Expected profit or return on investment
      (ROI) for the first year                          The business plan should be complete, clear,
    • Projected income statement and balance            neat and accurate. It will be an extension of
      sheet for two years                               you and your business.
    • Projected monthly cash flow statement
      for 12 months                                     The length of a good plan will vary from a few
                                                        pages to a hundred or more. The plan should
                                                        provide a sound “blueprint” for the business
                                                        and entice any reader to want to know more.

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Starting a Business

Sample Business Plan Outline                      The market analysis should highlight the
                                                  opportunities for the company to achieve its
I.   Cover Letter
                                                  goals by asking:
     Include items below for loan applications
                                                    • To whom are you trying to sell?
     A. Dollar amount requested                     • What are the trends in your target
     B. Terms and timing                              market?
     C. Type and price of securities                • Who are your customers and what are
                                                      their product/service preferences and
II. Cover Letter                                      reasons for purchasing?
    A. Dollar amount requested
        1. Name                                   IV. Products or Services
        2. Location and plant description             A. Description of product line
        3. Product                                    B. Patents, copyrights, legal and technical
        4. Market and competition                        considerations
        5. Management expertise                       C. Comparison to competitor’s products
    B. Business Goals                                 D. Opportunities or plans for expanding or
    C. Summary of financial needs and                    redesigning product or service lines
       application of funds                           E. Project changes in sales mix cost and
    D. Earnings projections and potential                profit
       return to investors
    E. “Exit” Strategy—describe to potential      This section should fully describe each
       investor(s) exactly how they will be       product or service including any brand names
       repaid for their investment. Repayment     and unique features. Analyze competitive
       may come from refinancing or selling       advantages and disadvantages of each. The
       stock to others.                           company’s customers may be the final users
                                                  or may resell to someone else. In the latter
Whether a business plan is developed mainly       case, the business owner should know identity
for the benefit of inside or outside investors,   of the ultimate consumer as well as immediate
the summary should “sit up and sing!” The         customers.
company’s goals, strategy and critical success
factors belong up front.                          V. Manufacturing Process (if applicable)
                                                     A. Materials
III. Market Analysis                                 B. Sources of supply
     A. Description of total market                  C. Production methods
     B. Industry trends
     C. Target market                             VI. Market Strategy
     D. Competition                                   A. Overall strategy
                                                      B. Pricing policy
                                                      C. Sales terms
                                                      D. Method of selling, distributing and
                                                         servicing products

Starting a Business

What customer groups will the business                  XI. Financial Data
target?                                                     A. Financial history (last five years)
                                                            B. Five-year financial projections (first
To generate sales, what product or service
                                                                year by quarters; remaining years
attributes will the company emphasize? How
will the company advertise and otherwise
                                                                1. Profit and loss statements
promote its products or services?
                                                                2. Balance sheets
                                                                3. Cash flow chart
VII. Market Strategy
                                                                4. Capital expenditure estimates
     A. Critical risks the business faces
                                                            C. Explanation of assumptions underlying
     B. Problems that may hinder plan
                                                                the projections
                                                            D. Key business ratios
     C. How to avoid or offset problems
                                                            E. Explanation of use and effect of new
Things hardly ever proceed exactly according
                                                            F. Potential return to investors compared
to plan. Develop contingency plans to meet
                                                               to competitors and the industry in
crises and likely problems.

VIII. Management Plan
                                                        These reflect, in dollar terms, a business’ past
      A. Type of business organization
                                                        and its expected future. Financial statements
      B. Board of Directors composition
                                                        and projections must be consistent with
      C. Officers, organization chart and
                                                        descriptions elsewhere in the business plan,
                                                        your marketing assumptions and strategy.
      D. Resumes of key personnel
      E. Staffing plan/number of employees
      F. Facilities plan/planned capital
                                                        Business Registration
         improvements                                   Your first step to doing business in New Jersey
      G. Operating plan/schedule of upcoming            is deciding which form of business organization
         work for next one to two years                 you wish to operate under. The specific choices
                                                        are discussed later in this chapter. Regardless
A business plan should list a company’s                 of which form you choose, you must file an
key managers and owners (along with their               Application for Registration (NJReg) with the
education, skills and experience, duties and            New Jersey Division of Taxation even if you
responsibilities), its board of directors (with         don’t think you will be collecting or withholding
their affiliations and experience) and any              taxes. There’s no fee for registration, but you
outside consultants.                                    must file an application at least five business
                                                        days prior to starting business. Registration is
                                                        the state’s way of making sure you receive all
                                                        the forms and information you need to comply
                                                        with New Jersey tax laws.

                           For more information visit
Starting a Business

Identification Number                                 Federal Tax Information

Once you’ve registered, you will be assigned a        Each employer must apply for an Employer
12-digit New Jersey Tax Identification number         Identification Number (Form SS-4) to comply
that will appear on all preprinted forms you          with regulations regarding federal income tax,
receive from the Division. The first nine digits      social security and unemployment insurance.
of the number usually correspond to your              For federal business tax information, contact
Federal Employer Identification Number. Be            the Internal Revenue Service in your area or
sure to include this number on all checks and         call toll- free 800-829-1040. Businesses that
correspondence you send to the Division.              have received Form SS-4 and want to have the
                                                      federal identification number issued over the
Buying an Existing Business                           phone, please call 800-829-4933 between the
                                                      hours of 8:00 a.m. and 4:30 p.m. daily or log
Once you’ve registered, you will be assigned a
10-digit New Jersey Tax Identification number
that will appear on all preprinted forms you
receive from the Division. The first five digits of
the number usually correspond to your Federal         Starting or running a business without proper
Identification Number. Be sure to include this        planning is like driving from Boston to Dallas
number on all checks and correspondence you           without a map. Planning shows the destination
send to the Division.                                 and the best road to get there. This information
                                                      summary will provide an overview of planning
To protect yourself from “inheriting” the tax         and discuss how and why to prepare a business
liability of the previous owner(s), you must          plan.
notify the Division of Taxation, Bulk Sales
section by registered mail at least ten days          Why Planning is Critical
prior to the purchase.
                                                        • Planning gives a path to follow.
                                                        • It makes future goals obtainable.
File Form C-9600, Notification of Sale Transfer
                                                        • It is the most important guide to starting,
or Assignment in Bulk. Form C-9600 can be
                                                          building and managing a successful
obtained by writing:
New Jersey Division of Taxation                         • It is the best tool available to help a small
ATTN: Bulk Sales                                          business raise money.
P.O. Box 245
Trenton, NJ 08646-0245                                A business plan can be a communications tool
Tel: 609-292-6604                                     for investors, suppliers, employees and others
                                                      interested in understanding the operations and
To order the New Jersey Complete Business             goals of your business.
Registration Packet contact the Business Action
Center at 866-534-7789.                               If you do not plan for the success of the business
                                                      . . . you will fail.

Starting a Business

Planning Can Be Difficult                                Incorporation

Although planning is critical to success, it is          Business owners have several options available
often overlooked in favor of intuition or “gut           to incorporate their business. You can download
feeling.” There are other obstacles that hinder          the application from the Business Portal at
planning, including:                            Complete the
                                                         form and mail to:
    • Lack of know-how. It is sometimes difficult
      to know how to plan and what to plan for.          New Jersey Department of Treasury
    • Fear of the unknown. It is hard enough             Division of Revenue/Business Service Bureau
      dealing with the problems of today without         PO Box 308
      worrying about what’s going to happen in           Trenton, NJ 08625-0308
      the future.
    • Inexactness. The best-set plans have a             The application can also be completed and
      funny way of not working out exactly the           submitted online from the Web site. The New
      way they are supposed to.                          Jersey Complete Business Registration Package
                                                         can be downloaded online as well or ordered by
These obstacles are very real and must be                calling the Business Action Center at 866-534-
overcome to achieve success. While it may be             7789.
challenging to face the future, heading into it
without any direction is much worse.                     In order for a corporation to be considered
                                                         operational, each corporation should obtain
Registering a Trade Name and                             a corporate kit. These kits can be obtained
Incorporation                                            from any stationery store. Kits include fill-in-
                                                         the-blank by-laws, minutes, stock certificates,
Trade Name
                                                         stock transfer ledger and the corporate seal. It
To register a trade name for partnerships                is important that all pertinent information be
and a sole proprietorship, contact the county            added to all forms.
clerk of the county in which the business will
be located. If doing business under your own             Formation of Partnerships
name, registration is desired, but not required.
                                                         Persons organizing a partnership must file a
If trading under any name other than your own,
                                                         certificate stating the firm’s name, the nature
registration is required by law.
                                                         of the business and the names of the partners
                                                         with the county clerk’s office in the county
Registration of your trade name in a county
                                                         where the business will be physically located.
generally protects your trade name from use
by other businesses in that county. Frequently,
                                                         The filing fee will differ in each county and
businesses that prefer not to incorporate
                                                         municipality. Similar certificates must be filed
simply register their business name in each of
                                                         in the event of discontinuance, dissolution, or
New Jersey’s 21 counties. However, if another
                                                         changes in the partnership.
business incorporates under your business
trade name and adds “Inc.” to that trade name,
your business name may not be protected.

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Starting a Business

Regulations and Licenses                             Price - How much will the business charge?
                                                     What is the profit margin? You must decide
Municipal Concerns
                                                     if the business will offer volume discounts,
Business owners should contact the municipality      seasonal markdowns, rebates, or other special
where the business is to be located to determine     pricing incentives. It’s important to consider
if the company needs to comply with:                 the break-even point when determining price
                                                     such as the number of sales required to cover
  •   Local zoning ordinances
                                                     costs, including material, labor and overhead.
  •   Municipal tax obligations
  •   Local mercantile licenses                      Promotion - How will the business let the
  •   Requirements to register a business            public know it’s in business and what it can
                                                     do for them? What forms of advertising will
New Jersey License and Certification                 be employed? When is advertising planned?
                                                     How can the business generate word-of-mouth
Occupations and business activities often
                                                     publicity? Aim promotional efforts at your most
require some form of registration, license
                                                     likely customers and tie your efforts into their
or certification by the state. The New
                                                     buying habits.
Jersey Business Action Center serves as a
clearinghouse for inquiries relating to licensing    Place (or Method of Distribution) - Where will
and registration requirements confronting            the product be found? Can people purchase it
persons who are considering entering various         in stores, through the mail, over the Internet,
professions,    occupations     and     business     or will you deliver it to their doorstep? Will
enterprises.                                         salespeople, distributors, or brokers be needed?
                                                     Compare the advantages of selling wholesale
For a complete listing guide visit:                  versus retail. or contact the
                                                     Positioning - Why should customers buy from
New Jersey Business Action Center at 866-534-
                                                     your company? Define what is unique about
                                                     the product (or service) and what differentiates
                                                     it. Study the competition carefully to find your
Marketing: The Pathway to Profits                    niche. What can your business offer that others
Ask any businessperson the key to success and        cannot?
most likely, marketing savvy will be mentioned
                                                     Potential - As a new competitor, your market
frequently. Marketing involves offering a
                                                     potential can be determined by analyzing the
needed product (or service), featuring it at a
                                                     size of the market and how well existing firms
price that maximizes profit, identifying potential
                                                     are serving the overall customer base. What
buyers and devising methods to efficiently sell
                                                     special group (or market segment) will be
to them. Marketing strategies usually revolve
around the following:

Product - Exactly what is the business selling?      Simply put, marketing comes down to
How will it be developed? What range of              understanding the relationship between a
materials and professionals will be necessary?       company’s product, customers and competition.
How will the product/service be produced and         The time and effort invested in solid planning
its quantity and quality be maintained? List the     will produce results.
product’s features and benefits.

Starting a Business

Trademarks and Copyrights                                The ® symbol may only be used if the USPTO
                                                         has issued a federal registration. To file
A trademark (sometimes referred to as a
                                                         an application for federal registration, the
brand name or logo) is a word, name, symbol,
                                                         trademark owner should visit the USPTO Web
device, or any combination thereof, used by a
                                                         site at
manufacturer or merchant to identify its goods
or services and distinguish them from those
                                                         Owners may complete and file their trademark
manufactured or sold by others. When a mark
                                                         applications online using the Trademark
is used with services, it is called a service mark.
                                                         Electronic Application System, (TEAS).

Trademark rights are derived from use of a
                                                         In addition, the USPTO’s Trademark Electronic
mark and mark owners may claim common law
                                                         Business Center provides the user with general
trademark rights from the time a mark is first
                                                         and specific information on trademarks, as well
used. However, common law rights only give
                                                         as the trademark registration process.
the owner of the mark limited protection. A
trademark owner may use a TM or SM symbol
                                                         Users may even search the registered
with their mark to indicate that they are
                                                         trademark database and check the status of
claiming rights to it.
                                                         pending applications at the USPTO at
A trademark owner, who is using or has an
intent to use his trademark in commerce that
                                                         After a trademark application is filed, it is
the United States Government regulates, such
                                                         reviewed by a trademark-examining attorney
as interstate commerce or commerce with a
                                                         to determine if the mark may be registered.
foreign entity, may file an application for federal
                                                         The examining attorney will perform a search
registration with the United States Patent and
                                                         to determine whether the applicant’s mark
Trademark Office (USPTO).
                                                         is likely to cause confusion with other marks
                                                         already protected by federal registration.
Federal registration of trademarks is not a
requirement; however, it is highly advisable
                                                         If a proposed mark passes the examination
since federal registration provides the owner
                                                         phase, it will be published in the Official Gazette
with distinct advantages over owners of
                                                         of the Patent and Trademark Office. Those who
unregistered marks.
                                                         believe they will be damaged by registration of
                                                         the mark then have an opportunity to oppose
Registered trademarks serve as prima facie
                                                         the registration.
evidence of ownership, provide businesses
or individuals the right to use or license their
                                                         If no opposition is filed, then a registration
trademarks, allow trademark owners the
                                                         certificate is issued. The registration procedure
right to sue for trademark infringement in the
                                                         takes an average of 13 months. The registration
federal courts and allow owners to apply for
                                                         may be renewed every 10 years as long as the
trademarks in other countries based upon their
                                                         registrant continues to use the mark and files
U. S. registration.
                                                         the required documents and fees to maintain the
                                                         registration. Information on the maintenance
                                                         of federal trademark registrations may also be
                                                         found at

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Starting a Business

Electronic correspondence with the USPTO is         The general mailing address is:
strongly encouraged.
                                                    U.S. Copyright Office
                                                    101 Independence Avenue, S.E.
For    additional     information    on    the
                                                    Washington, DC 20559-6000
trademark     registration   process,   e-mail or call
                                                    Patents in Brief
the USPTO Information Line and Trademark
Assistance Center at:                               A patent for an invention is the grant of a
                                                    property right to the inventor, issued by the
Telephone: 800-PTO-9199
                                                    United States Patent and Trademark Office
TTY: 571-272-9950
                                                    (USPTO). A patent gives the inventor the
                                                    right to exclude others from making, using, or
If an individual plans to file a trademark
                                                    selling his invention within the United States,
application, they or their representative should
                                                    its territories and possessions for a limited
conduct a search of pending and registered
                                                    amount of time.
trademarks to make sure that the mark is
not already the subject of an application or
                                                    Generally, the term of a new patent is 20 years
                                                    from the date on which the application for the
                                                    patent was filed in the United States, or in
General information regarding the USPTO may
                                                    special cases, from the date an earlier related
be obtained by writing to:
                                                    application was filed.
US Patent and Trademark Office
Commissioner for Trademarks                         There are three kinds of patents: (1) utility
PO Box 1451                                         patents, granted to the inventor or discoverer
Alexandria, VA 22313-1451                           of any new and useful process, machine,
                                                    manufacture, composition of matter, or any
Copyright Protection                                new and useful improvement thereof; (2)
                                                    plant patents, granted to anyone who invents
Copyright is a form of protection provided
                                                    or discovers and asexually reproduces any
to authors of “original works of authorship,”
                                                    distinct and new variety of plant; and (3) design
including original literary, dramatic, musical,
                                                    patents, granted to anyone who invents a new,
artistic and certain other intellectual works,
                                                    original and ornamental design for an article of
both published and unpublished.
The United States Copyright Office, a division of
                                                    General and specific information on patents
the Library of Congress, is responsible for the
                                                    may be obtained by visiting the USPTO Website
administration of federal copyright protection.
Information on copyrights and applications for
filing for copyright protection may be obtained
                                                    Applicants may perform online searches of
from the United States Copyright Office.
                                                    the USPTO database, view patent guidance
202-707-5959 or 1-877-476-0778                      notifications and obtain answers to frequently
The Web address for the Copyright Office is:        asked questions. Applicants may also file                                   applications for certain patents online by using
                                                    the Electronic Filing System, EFS.

Starting a Business

Information on electronic filing can be found by          Reducing the Risk
visiting the Patent Electronic Business Center
                                                          Entrepreneurs should evaluate the following
                                                          risks to determine whether or not they are
                                                          starting out on sound footing.
After a patent application is filed with the USPTO,
the application will be assigned to a patent              Smart Risks:
examiner. The examiners, who are experts
                                                          1. Start a business you enjoy.
in various fields of technology, will research
                                                          2. Overestimate your operating costs. It will
previous patents and technical literature to
                                                              be difficult to get another loan or a larger
determine whether a patent should be granted.
                                                              line of credit later because investors might
The patent application and issuance procedure
                                                              assume you didn’t do your homework
normally takes about 27 months.
                                                              thoroughly the first time.
                                                          3. Know your market and your competition.
If an individual plans to file a patent application,
                                                          4. Owners should pay themselves a salary
they or their representative should conduct
                                                              they can afford. It may not be as high as
a search of patents previously granted to
                                                              desired but it should be adequate.
make sure that the idea has not already been
                                                          5. Never take the public for granted. Make
                                                              service, integrity and honesty high
The USPTO strongly advises inventors to
                                                          6. Establish and maintain an ongoing
consult a patent attorney before attempting to
                                                              relationship with your banker. Always be on
file an application. Names of patent attorneys
                                                              the lookout for sources of capital for future
and agents may be obtained from the classified
telephone directories in major cities, or from a
                                                          7. Assess the company’s credit policy carefully.
directory published by the Government Printing
                                                              Realize that some customers won’t pay on
                                                              time and some won’t pay at all.
                                                          8. Get professional help in preparing the
For additional information on the patent
                                                              business plan and cash flow chart.
process, call the USPTO Information Line and
                                                          9. Owners should hire people who have
Patent Assistance Center at:
                                                              different skills, abilities and characteristics
Telephone: 800-786-9199                                       from themselves.
TTY: 571-272-9950                                         10. Define each employee’s job and make
                                                              sure everyone understands his or her
General information regarding the USPTO may                   obligations. Be willing to delegate.
be obtained by writing to:                                11. Spend time researching and choosing a
U.S. Patent and Trademark Office
                                                          12. Join clubs and associations for new
Commissioner for Patents
                                                              businesses and muster support for your
PO Box 1450
                                                              new enterprise.
Alexandria, VA 22313-1450
                                                          13. Define your business goals and establish a
                                                              time-management system.
                                                          14. Solicit the help of family, friends and
                                                          15. Keep up with industry news by taking
                                                              courses and by reading industry magazines
                                                              and related publications.
                             For more information visit
Starting a Business

Foolish Risks:                                      Forms of Business Organizations
1. Base the decision to become an entrepreneur      Sole Proprietorship
    solely on the ability of a venture to make
                                                    This is a business where one person furnishes all
                                                    the capital and assumes all the responsibilities
2. Pretend there are more start-up funds than
                                                    for the business actions.
    you really have.
3. Assume that because your product or
    service costs less than your competition,
    people will flock to your door.                 After a businessperson has decided what
4. Self-paying a salary that exceeds the salary     kind of company they are going to start it
    received while working for someone else.        may be necessary to bring in one or more
5. Expect customer loyalty before it is earned.     associates in order to launch the company. The
6. Communicate with the bank only after             businessperson will need to decide whether
    running out of money and managing cash          the legal structure should be a formed as a
    flow on an ad hoc basis.                        partnership or corporation.
7. Spend working capital down to the last
    dollar, expecting that people will pay you in   In a partnership, the liability of each general
    time to cover your expenses.                    partner for all the debts of the firm is unlimited,
8. Hire people who share your background and        just as it is in a sole proprietorship. This
    entrepreneurial ambitions. Hire a friend’s      generally means that each of the general
    friend or hire solely on the recommendation     partners is personally responsible for all the
    of another person.                              debts of the firm.
9. Give      employees     no     decision-making
    authority. But, if anything goes wrong          This amount could very easily be in excess of
    blame them!                                     the amount they have invested in the business.
10. Rent expensive office space to impress          A partnership, as does a sole proprietorship,
    your clients.                                   lacks continuity. This means that the business
11. Assume that success was achieved                terminates upon the death of the owner or
    independently and the support of friends        partner, or upon the withdrawal of a partner. In
    and colleagues is no longer needed.             some special situations, a limited partnership
12. Assume that no one will know or that it does    should be considered.
    not make a difference if laws are obeyed.
13. Try to do everything yourself (no matter        Remember that one of the principal causes
    how much energy you have, or how clever         of failure among businesses is inadequate
    you may be).                                    financing, so don’t overlook the fact that it is
                                                    the businessperson(s) responsibility to provide
                                                    or obtain sufficient money to supply a firm
                                                    foundation for your enterprise. Should more
                                                    money be required sharing the ownership of
                                                    the business is one way of obtaining it.

Starting a Business

Some owners may lack certain technical or                 Below is a list of some of the points that should
management skills that are of major importance            be covered in a partnership agreement. Other
to the business. A partner with these skills may          points can be added to meet the needs of
prove the most satisfactory way of covering               specific situations.
this deficiency.
                                                          1. Name - Purpose - Where it will be located
                                                          2. Duration of the agreement
Great care should be taken in selecting
                                                          3. Authority and responsibilities of each
a partner. Compatibility, personality and
                                                              individual partner (which partner supervises
character, as well as ability to render technical or
                                                              different employees, etc.)
financial assistance, all should be given serious
                                                          4. Character of partners (general or limited,
consideration. Friendship is a wonderful thing,
                                                              active or silent)
but friendship alone should not be the sole or
                                                          5. Amount to be contributed by each partner
determining factor in selecting a partner. The
                                                              (at the beginning, or later)
selection of a partner could well be one of the
                                                          6. Division of profits and losses (this is very
most important decisions an owner will have to
                                                          7. Salaries     of    each  partner    (whether
                                                              guaranteed or not)
Base all decisions on logic and not on emotion.
                                                          8. How much money/cash each partner may
The act of any one partner, relative to the
                                                              withdraw from the bank
business, will bind the partnership and each
                                                          9. Death of partner (dissolution and wind-
partner for all their assets, whether or not they
invested in this particular business.
                                                          10. Sale of partnership interest
                                                          11. Arbitration of disputes (how disputes will
Though it is not specifically required by law,
                                                              be settled)
it is strongly recommended that written
                                                          12. Required and prohibited acts
Articles of Partnership be executed and that
                                                          13. Absence and disability
this agreement cover all the points suggested
                                                          14. Restrictive covenants
                                                          15. Buying and selling agreement

It is extremely important that partners sign
a written agreement if profits or losses are
to be shared in any way, other than strictly
according to the interest each partner holds in
the business. A written agreement, properly
drawn, can prevent misunderstandings among
partners in later years. Verbal agreements are
subject to different interpretations by well-
intentioned people, especially after the passing
of a few years’ time.

                             For more information visit
Starting a Business

Corporation                                          The certificate must include a statement that
                                                     the LLC has one or more members and it may
In a corporation, the liability of the owners is
                                                     provide that the entity is formed at any date
limited to the amount they pay for the shares
                                                     or time after filing specified in the certificate of
of stock. A corporation is a legal entity and its
continuity is unaffected by death or the transfer
of shares of stock by any or all owners.
                                                     An LLC formed under the Act is a separate
                                                     legal entity and shall continue as such until
One disadvantage of most corporations is double
                                                     cancellation of the LLC’s certificate of formation.
taxation; income tax is levied upon corporate
                                                     A foreign LLC must register with the Business
profits and, in addition, upon dividends after
                                                     Services Office before doing business in New
they are paid to the stockholders.

However, there is a certain type of corporation
                                                     Operating Agreement
that is known as an “S-Corporation.”
S-Corporation profits are passed through to          Typically an LLC will be governed by an
the individual stockholders, much the same           “operating      agreement.”    The     operating
way as in a partnership, thus there is no            agreement or other written agreement may set
federal income tax to the corporation as an          forth details relating to membership, including
entity. There are many differences between           relative rights, powers and duties (e.g., voting).
C-Corporations and S-Corporations. One may           It may also provide that the LLC is headed by a
be more advantageous for your business and           manager and may even provide for classes or
should be discussed with a financial advisor.        groups of members in the manner provided in
                                                     the operating agreement.
Limited Liability Companies
The New Jersey Liability Company (LLC) Act,
                                                     Advantages and Disadvantages
N.J.S.A. 42:2b-1, provides for the establishment
                                                     of Different Forms of Business
of LLCs in New Jersey and makes many choices
available to persons establishing an LLC as a        The principal advantages and disadvantages
business entity.                                     of the three most commonly used business
                                                     organizations are as follows:
To form an LLC in New Jersey, one or more
authorized person must complete a Certificate        Sole Proprietorship
of Formation and file it with the Department           Advantages
of Treasury, Business Service Office (formally         Low start-up costs
Commercial Recording).                                 Greatest freedom from regulation
                                                       Owner in direct control
Include in the certificate the name of the limited     Minimum working capital requirements
liability company, the name and address of             Tax advantage to small owner
the registered agent and the address of the            All profits to owner
registered office. The latest date of dissolution
should be noted, if applicable, as well as any
                                                       Unlimited personal liability
other matters the members decide to include
                                                       Lack of continuity
in the certificate.
                                                       More difficult to raise capital

Starting a Business

Partnership                                                 New Jersey Tax Treatment
                                                            A Limited Liability Company formed under the
  Ease of formation
                                                            New Jersey Act or qualified to do business in this
  Low start-up costs
                                                            state as a foreign limited liability company shall
  Additional sources of venture capital
                                                            be classified as a partnership unless classified
  Broader management
                                                            otherwise for federal income tax purposes, in
  Limited outside regulation
                                                            which case the LLC will be classified in the same
     Disadvantages                                          manner as it is classified for federal income tax
     Unlimited personal liability                           purposes.
     Lack of continuity
     Divided authority                                      Thus, generally, an LLC will be treated as a
     Difficulty in raising additional capital               partnership for New Jersey tax purposes and
     Hard to find suitable partners                         would therefore be required to follow the tax
                                                            return filing requirements for partnerships in
                                                            this state.

                                                            Individuals and corporations who are members
                                                            of a limited liability company deriving income
                                                            from New Jersey sources would typically file
                                                            their own individual or corporate return with
                                                            New Jersey reflecting their membership in the

                                                            Partnerships that are members would also
                                                            make the appropriate New Jersey filing. A
                                                            partnership or corporation converting to an LLC
Corporation                                                 must file a new form REG-l for registration with
 Advantages                                                 the New Jersey Division of Taxation.
  Limited liability
  Specialized management                                    The applicant LLC should include with its
  Ownership is transferable                                 submission any available determination or
  Continuous existence                                      verification of federal tax treatment of the
  Legal entity                                              entity.
  Easier to raise capital
  Unity of action on account having centralized             For more information contact: New Jersey
  authority in board of directors                           Department of Treasury, Division of Revenue,
                                                            Client Registration Bureau at 609-292-9292 or
     Closely regulated
     Most expensive to organize
     Charter restrictions
     Extensive record keeping necessary
     Double taxation, except when organized as
     an “S Corporation”
     Difficult to liquidate investment

                               For more information visit
Starting a Business

Choosing a Location                                  5. What environmental factors (schools,
                                                         cultural, community atmosphere) might be
One of the most important decisions for a
                                                         attractive to the business and employees?
business is the location. Today, with the aid of
                                                     6. What will the quality of this site be in 5
computers, potential sites can be scientifically
                                                         years, 10 years and 25 years?
evaluated before you invest.
                                                     7. Would my major competitor choose this
Specific trade and zip code areas may be
                                                     8. Is quality labor available in close proximity
defined for both demographic data and lifestyle
                                                         to site? Is public transportation available?
characteristics. This can give some comfort
                                                     9. Is parking space available and adequate?
that the location selected will be in an area that
                                                     10. Is the facility easily accessible?
conforms to the standards to meet a preferred
                                                     11. Will crime insurance be prohibitively
customer profile.
                                                     12. Is the location convenient to where you
To access New Jersey’s site evaluator tool, as
well as other location information, visit:
                                                     Determination    of   Business   Name    &   Its
Homework is a must regarding the future
of a site. Going to the zoning and planning          The first step towards starting a business
department(s) in the selected area(s) is the         involves deciding the legal form of your
first thing a business should do to ascertain a      business. The following are possible scenarios:
five- year and sometimes a ten-year projection
of the area(s) surrounding the site(s).                  A sole proprietorship or general partnership
                                                         will generally use a “trade name.” If you
Secondly, do surveys, talk to people, get to             intend to do business under your own
know all about the site before making that               name, then no trade name registration is
long-term decision.                                      required. Registration is only considered
                                                         advisable. If you intend to operate a Sole
Whether the company’s financial situation                Proprietorship or General Partnership using
indicates the need to buy or lease land,                 a business name, then you must contact
building and equipment, it is important to seek          the County Clerk’s Office of the county
professional assistance to carry through the             in which the business will be located for
site selection and negotiation processes.                registering a trade name. This registration
                                                         at the county level is compulsory. The
General Questions to Ask:                                registration protects that name from use by
                                                         other businesses within that county. If you
1. Is the site centrally located to reach my
                                                         are interested in reserving the trade name
                                                         in other counties then you must register
2. What is the transportation availability and
                                                         that name in those counties as well. To
   what are the rates?
                                                         protect the name statewide you should
3. What are provisions for future expansion?
                                                         register the name in each of the State’s 21
4. What is the housing availability for
   managers and workers?

Starting a Business

     If your business is going to be a Corporation,       Taxation
     a Limited Liability Company (LLC), or a
                                                          All businesses must pay taxes. When you
     Limited Liability Partnership (LLP) then you
                                                          register your business, the State of New Jersey
     must Register a New Business Entity with
                                                          will send pertinent forms and information
     the Division of Commercial Recording, New
                                                          necessary for compliance with the New Jersey
     Jersey Department of Treasury. You can
                                                          tax laws. It is important to include either a
     take advantage of New Jersey’s easy to use
                                                          social security number or a Federal Employer
     online services to register your business
                                                          Identification Number (FEIN) on all returns,
     entity by visiting www.NewJerseyBusiness.
                                                          checks, and other correspondence sent to the
     gov and clicking on the “Starting a
                                                          State of New Jersey.
     Business” tab. You can also contact the
     division directly at Division of Commercial
                                                          Local Permits & Other Regulations
     Recording, PO Box 308, 33 West State St.,
     Trenton, New Jersey, 08625-0308 or call              All businesses should contact the municipality
     866-534-7789.                                        and county in which the business is located to
                                                          determine if there are any local regulations to
Registration of the Business                              which the business must adhere. Also check
                                                          whether any permits are required for your
All businesses must “Register for Tax and
                                                          business to operate.
Employer Purposes” with the New Jersey
Division of Revenue, regardless if they plan on
                                                          Business Licenses and Certification
collecting sales tax or having employees. You
may now register your business for taxes and              Depending on the nature of your business,
employer contributions for unemployment and               the State of New Jersey may require that
disability, online at www.NewJerseyBusiness.              you either obtain a license, certification,
gov and clicking on the Starting a Business Tab.          or registration. The New Jersey Online License
You may also contact the Division of Revenue,             & Certification is available online at
Client Registration Bureau by calling 866-534-  
                                                          This site lists various types of businesses and
The IRS will allow a sole proprietorship or a             their requirements. You can also contact the
single member LLC with no employees to use                Business Action Center at 866-534-7789 to
the owner’s social security number for federal            obtain license/certification information.
tax purposes. However other business entities
and all businesses with employees are required
to obtain a Federal Employee Identification
Number (FEIN) from the IRS. You can obtain
a FEIN by filing a form SS-4 with the IRS or by
visiting the IRS Web site at

                             For more information visit
Starting a Business

Employee Related Issues                            Additional Requirements for Out-Of-State Firms

If you have at least one employee, you are         If you are not located in the State of New
required to address the issue of employer          Jersey but intend to start your business here,
insurance. Information on employer insurance       there are some additional requirements that
and other responsibilities can be found at www.    you need to fulfill: Just click on Workforce
Training and Programs for a list of Employer’s        Corporations, LLC and Limited Partnerships:
Responsibilities. You may also contact the
                                                      It is necessary to register a new business
following departments for information on your
                                                      entity and register for tax and employer
insurance responsibilities:
                                                      purposes, but you will be registering as a
                                                      “Foreign” Corporation, LLC, LLP or LP.
   Unemployment Insurance:

   If you have at least one employee,                 General Partnerships and Sole
   registration is required with the Division of      Proprietorships:
   Employer Accounts, New Jersey Department
                                                      It is necessary to obtain a “Trade Name
   of Labor and Workforce Development,
                                                      Certificate to Operate” from the Clerk
   PO Box 913, Trenton, New Jersey 08625-
                                                      in each county where business will be
   0390. For information in North Jersey call
                                                      conducted. You will also need to Register
   (Newark) 973-648-4109, in Central Jersey
                                                      for Tax and Employer Purposes.
   (New Brunswick) 732-418-3331, and in
   South Jersey (Camden) 856-614-3764.
                                                      Out-of-State Payroll Record keeping:

   Workers’ Compensation Insurance:                   A permit must be acquired from the Division
                                                      of Workplace Standards, Office of Wage and
   Information      regarding      Workers’
                                                      Hour Compliance, New Jersey Department
   Compensation accidents may be obtained
                                                      of Labor & Workforce Development, 609-
   by contacting the Division of Workers
   Compensation, New Jersey Department of
   Labor and Workforce Development, PO Box
   381, Trenton, New Jersey 08625-0381,
   609-292-2515. For coverage information,
   contact your insurance provider, or the
   Compensation Rating and Inspection
   Bureau at 60 Park Place, Newark, New
   Jersey 07102, 973-622-6014.

Section 2: Costs of Doing Business

New Jersey Sales Tax                                     If you are unsure whether an item you are
                                                         planning to sell is taxable, information on the
A registered business that will be collecting
                                                         taxability of intra/inter-state sales is available
sales tax, remitting use tax, or exemption
                                                         by calling the New Jersey Business Action
certificates, will receive a Certificate of
                                                         Center 866-534-7789.
Authority for Sales Tax by mail. The Certificate
permits a business to collect sales tax and to
                                                         Filing Sales Tax Returns
use exemption certificates. It must be displayed
prominently at the place of business.                    You must file a New Jersey Sales and Use Tax
                                                         Quarterly Return Form (ST-50) every three
Buying for Your Business - Using Exemption               months, even if in that particular quarter no
Certificates                                             tax was collected. Businesses that collect a
                                                         sales tax more than $500 per month must also
When you buy materials (inventory) for resale,
                                                         file monthly returns (Form ST-51).
or materials which will become part of the
product sold, businesses are not required to
                                                         NOTE: Seasonal businesses are required to
pay sales tax—provided they issue a New Jersey
                                                         file both monthly and quarterly returns for
Resale Certificate (Form ST-3) to the supplier.
                                                         the period of time in which they conducted
                                                         business, regardless of the amount of tax due.
Certain production machinery and most
packaging supplies are exempt from sales
                                                         Income Tax Withheld
tax because of their intended use. You may
use an Exempt Use Certificate (Form ST-                  Employer Responsibilities
4) when purchasing these items and pay no                Employers are required to withhold New Jersey
sales tax. Other common uses of the Exempt               State income tax from the wages of your
Use Certificate are listed on the back of the            employees (except Pennsylvania residents).
certificate.                                             The withheld tax must be remitted to the
                                                         Division of Taxation on a weekly, monthly or
NOTE: There are special exemption certificates           quarterly basis. Withholding rates range from
for use by registered exempt organizations               1.5 percent to 7.0 percent.
(FORM ST-5) and contractors doing work for
exempt organizations                                     All employers must file a quarterly return of
(Form ST-13).                                            tax withheld (Form NJ-941 or NJ-941-W) no
                                                         later than the last day of the month following
Selling Your Product – Collecting Sales Tax              the end of each calendar quarter. An employer
If selling taxable items or services in New Jersey,      with a prior year liability of $20,000 or more
businesses are required to collect a 7 percent           for employer income tax withholdings is
sales tax and remit it to the state. Businesses          designated a “weekly payer,” and must remit
should not collect tax if the purchaser issues           payment of withholdings by Electronic Funds
you a valid New Jersey exemption certificate             Transfer (EFT).
or if your product is delivered to the buyer out-

                            For more information visit
Costs of Doing Business

Tax is due on or before the Wednesday of          Who is an Employee?
the week following the week containing the
                                                  An employee is an individual who performs
payday(s) on which the taxes were withheld.
                                                  services for a person (or organization) with
Taxpayers not required to remit tax as weekly
                                                  whom he has established the legal relationship
payers must remit withheld taxes monthly,
                                                  of employer and employee. In general, anyone
using Form NJ-500, if the amount withheld in
                                                  who performs a service is an employee. The
either of the first two months of a calendar
                                                  employer can control what will be done and
quarter is $500 or more.
                                                  how it will be done.

Amounts less than $500 may be included with
                                                  If there is any doubt as to whether an employer/
the quarterly return. When required, payments
                                                  employee relationship exists, the entire
are due by the 15th day of the month following
                                                  relationship between worker and employer
the month in which the tax was withheld.
                                                  must be examined and consideration given to
Tax due for the third month of the quarter is
                                                  all aspects of the relationship, including any
remitted with the quarterly return. You will
                                                  special circumstances that may exist in that
receive the necessary forms, withholding tables
                                                  particular case.
and instructions once you have registered.
                                                  If an employer/employee relationship does
                                                  exist, it does not matter that the employee is
Are You an Employer?
                                                  called an “independent contractor,” “agent,” or
An employer is any person or organization         “partner.”
(including organizations that may be exempt
from federal income tax or New Jersey corporate   As a rule, people who are in business
business tax, such as religious or charitable     for themselves (e.g., doctors, lawyers,
organizations and governmental agencies) for      construction contractors and others engaged
whom an individual performs a service as an       in an independent trade or profession offering
employee.                                         their services to the public) are not employees.
                                                  A sole proprietor or a partner in a partnership
An employer usually provides the employee         is never an employee of his or her own
with a place to work and the necessary tools      business. However, in some cases, an officer
to perform the services for which they are        of a corporation may be an employee of the
hired. An employer has the right to set work      corporation. If you are in business for yourself,
hours, assign tasks, specify the methods used     it is likely that you are self-employed for New
to perform those tasks and fire the worker.       Jersey income tax purposes.
An employer must withhold income tax from
wages paid to an employee but does not            Federal “Statutory” Employees
generally withhold income tax on payments to
                                                  The Federal designation of “state employee”
self-employed individuals.
                                                  has no meaning for New Jersey income
                                                  tax purposes. If, under New Jersey law, an
                                                  employer/employee relationship exists between
                                                  the payer and the recipient of compensation
                                                  subject to New Jersey gross income tax, the
                                                  recipient is considered an employee and the
                                                  payer must withhold New Jersey gross income

Costs of Doing Business

Pennsylvania Residents Working in New Jersey            For forms or information, call Taxation’s
                                                        Automated Tax Information System at
Employers are not required to withhold New
                                                        800-323-4400. To speak to a Division
Jersey income tax from an employee who
                                                        representative, call the Tax Hotline at
is a Pennsylvania resident if that employee
                                                        609-292-6400 or write to:
completes a Certificate of Non-residency in New
Jersey (Form NJ-165). For information about             New Jersey Division of Taxation
withholding Pennsylvania personal income tax,           Technical Services
write to:                                               PO Box 281
Pennsylvania Department of Revenue
                                                        Trenton, NJ 08695-0281
Information Services Division
Box 8056, Strawberry Square
                                                        Tax Information Packet
Harrisburg, PA 17105
or call 717-787-8201.                                   A packet is available that includes the
                                                        information needed to register your business
Wage and Tax Statements for Your Employees              with the New Jersey Division of Taxation.
                                                        Descriptions of all state taxes are included.
Employers must furnish two copies of the Wage
                                                        Employers can avoid future tax problems by
and Tax Statement (W-2) to each employee
                                                        knowing what the business tax responsibilities
from whom any amount of income tax was
                                                        are and how to best meet them. For
withheld or would have been withheld under
                                                        details or questions, call the Tax Hotline at
the withholding tables and methods issued by
                                                        609-292-6400 or toll-free at 800-323-4400.
the Division of Taxation.

New Jersey law also requires the inclusion on
the W-2 of the separate amounts deducted and            There are certain types of insurance that all
withheld as worker contributions due State              small businesses should have such as fire,
Disability Insurance, Workforce Development             general liability, automobile liability, automobile
and Healthcare.                                         physical damage and automobile collision. If the
                                                        business has employees, additional insurance
In addition, employers must file a reconciliation       is required: unemployment, disability, workers’
of New Jersey Gross Income Tax Withheld (Form           compensation and employer liability.
NJ-W-3), along with Copy 1 of the W-2, with
the Division of Taxation on or before February
15th following the close of the calendar year.

A Reminder

Sole proprietors and partners must report the
net income from their business on the New
Jersey Gross Income Tax Return. Declarations
of Estimated Tax (NJ-1040-ES) must be filed
quarterly if you estimate your New Jersey
income tax liability to be $100.

                           For more information visit
Costs of Doing Business

Employee life and health insurance are optional.   The state distributes free Buyer’s Guides,
Other important insurance coverage includes        which describe the plans available and
fidelity bonds, surety bonds, income insurance,    answer commonly asked questions to help
property insurance (often referred to as           employers shop for health coverage. Buyer’s
casualty insurance) and business interruption      Guides, premium rate information and a list
insurance. Depending on your type of business,     of participating carriers and their toll-free
there are other forms of insurance coverage        numbers may be obtained by calling:
available. Check with your insurance agent to
                                                     • Individual  Health    Coverage    Program
see what is applicable to you.
                                                       (Self-employed individuals): 800-838-0935
New Jersey Individual Health Coverage Program        • Small Employer Health Benefits Program:
and Small Employer Health Benefits Program             800-263-5912
20 West State Street, 10th Floor                     • Or on the Web site at
P.O. Box 325
Trenton, NJ 08625-0325                             Employers with 20 or more employees, who
Tel: 609-633-1882 ext. 50302 or ext. 50306         offer health benefits to their employees, must
                                                   also offer continuation of coverage under
Health Insurance                                   federal law, commonly referred to as “COBRA.”
                                                   State continuation of coverage is available to
The state has taken dramatic steps to make
                                                   employees of small business employers (2-19
health insurance more accessible and affordable
                                                   employees) who are not subject to COBRA.
for New Jersey employers.
                                                   Pursuant to New Jersey law (N.J.S.A. 17B:
                                                   27A-27), small business employers must
Since new laws took effect in 1994, health
                                                   offer employees the option to continue their
insurance     coverage    for   self-employed
                                                   group health coverage when an employee is
individuals has been offered on a guaranteed
                                                   terminated, goes to part-time status, or ends
issue, guaranteed renewable, community
rated basis. Coverage for small business
employers with 2-50 employees working 25
hours per week or more has been offered on
                                                   Employee Insurance
a guaranteed issue, guaranteed renewable,          Unemployment Compensation
modified community rated basis.
                                                   Employers of one or more persons, with
                                                   certain exceptions, are required to participate
This means that self-employed individuals and
                                                   in the federal-state program to provide
small business employers can obtain and keep
                                                   unemployment insurance for idled workers. In
good, affordable health coverage regardless
                                                   New Jersey, employers are liable for worker
of their own or their employee’s health status,
                                                   contributions that may be withheld from wages.
age, or claims history.
                                                   Contributions must be reported and paid
                                                   every three months to the New Jersey
                                                   Employment Security Agency. For information
                                                   call 609-292-2638.

Costs of Doing Business

Temporary Disability Insurance                         There is no cost to the workers in the form of
                                                       salary deductions. The Division of Workers’
Employees subject to New Jersey Unemployment
                                                       Compensation administers this program and
Compensation Law must also observe provisions
                                                       maintains a system of administrative courts to
that provide protection for workers disabled
                                                       provide hearings and adjudication of workers’
because of injuries and illnesses due to non-
                                                       compensation claims.     The state offers no
occupational sickness or accident.
                                                       insurance itself.

Employers may select coverage under the
                                                       Employers may obtain coverage from any
state plan or a private plan. Private plans are
                                                       private company authorized to write workers’
supervised by the Department of Labor and
                                                       compensation or employer liability insurance in
Workforce Development.
                                                       New Jersey. This insurance may be obtained
                                                       through private insurance brokers or agencies.
The state plan, which is similar to the
unemployment        compensation       program,
                                                       For further information contact:
requires contributions to be made by employers
and covered workers into the State Disability          Department of Labor and Workforce
Benefits Fund. Reports and contributions are           Development
remitted quarterly to the New Jersey Security          Division of Workers’ Compensation
Agency. All employing units, whether subject to        P.O. Box 381
the contribution provisions or not, are required       Trenton, NJ 08625-0381
to file status reports with the Department of          609-292-2515
Labor and Workforce Development, Office of
the Comptroller.                                       Entrepreneurial Training Program Available to
                                                       Dislocated Workers
Workers’ Compensation Insurance
                                                       Unemployed individuals interested in starting
All employers in New Jersey must provide               their own business and becoming self-employed
workers’ compensation insurance for their              may apply to the New Jersey Self-Employment
employees prior to the beginning of work. The          Assistance and Entrepreneurial Training (SEA)
exception is “casual employment,” which is a           Program which is administered by the New
job done under circumstances rare in this state.       Jersey Department of Labor and Workforce
                                                       Development,     Division    of   Employment
Also, certain occupations are covered under            and Training. This program offers qualified
federal law rather than state law. Workers’            dislocated workers the following benefits:
compensation benefits include cash payments
and medical or hospital services provided to             • A waiver of the unemployment active search
workers or their families (in case of death) who           for work requirement
sustain a job-related injury or illness.                 • SEA allowances, in lieu of regular
                                                           unemployment insurance benefits
                                                         • Counseling and technical assistance on
                                                           developing a business plan
                                                         • Training grant for entrepreneurial training

                          For more information visit
Costs of Doing Business

For further information, visit or call the nearest      Professional Help
state employment service office listed in the
                                                        We cannot be experts in all fields. Your attorney
phone book under State of New Jersey, Labor
                                                        is by training and experience the best possible
Department, or visit
                                                        source of assistance in matters of law and
Record Keeping                                          statutes regarding business. A qualified legal
                                                        advisor is essential to any business and will be
What Should I Know About Accounting and                 necessary to your business as it prospers.

The importance of keeping adequate records              An accountant, like the lawyer, is your best ally.
cannot be stressed enough. Without records,             He/She is the expert source for advice on taxes
you cannot see how well your business is doing          and in making you aware of the health of the
and where it is going. At a minimum, records            business.
are needed to substantiate: your tax returns
under federal and state laws, including income          His/her expertise should be explored in
tax and Social Security laws; your request for          providing aid for record keeping, finances,
credit from vendors or a loan from a bank;              profit or loss and tax matters. A bookkeeper
and your claims about the business, should              can provide much valuable advice on similar
you wish to sell it. Most importantly, you need         subjects, but does not have the in-depth
records to run your business successfully and           training and experience to aid larger businesses
to increase your profits.                               whose finances and tax reporting are usually
                                                        too complex for a bookkeeper’s expertise and
How Do I Set Up the Right Record-Keeping                whose domain is normally confined to record
System For My Business?                                 keeping.

The kind of records and how many you need
depend on your particular operation. Your
accountant can provide you with many options.

What Financial Statements Will I Need?

You should prepare and understand two basic
financial statements: (1) the balance sheet,
which is a record of assets, liabilities and capital;
and (2) the income (profit and loss) statement,
a summary of your earnings and expenses
over a given period of time. However, arguably
the most important financial statement is one
that shows cash inflows and outflows. Always
remember—you can only spend cash, not

Costs of Doing Business

Other Employee Issues                                   Overtime - Overtime is paid at the rate of time
                                                        and a half after 40 hours of actual work in a
As an employer in New Jersey, you will be subject
                                                        7 day workweek with the exception of certain
to a number of state regulations, many of which
                                                        salaried employees who meet the definition
come under the jurisdiction of the Department
                                                        of an executive administrator or professional.
of Labor & Workforce Development. The next
                                                        Overtime is not required for work on holidays
page summarizes the major requirements and
                                                        or weekends only for work over 40 hours.
are grouped by area of interest. The name of
                                                        Overtime is only paid for actual work time so if
the administering division may be obtained
                                                        you work 40 hours and are being paid 8 hours
by contacting these divisions directly through
                                                        of holiday pay all that pay can be straight time.
their offices.

New Jersey Department of Labor and Workforce            Employers may require workers to work
Development                                             overtime (exempt for special regulations that
Trenton, NJ 08625                                       apply to health care workers).
                                                        Benefits - Employers are free to set hours
Wages And Working Conditions                            of work, the number or frequency of breaks
                                                        including meal breaks, (except when the
Payment of Wages - All employers must pay
                                                        employee is under 18 year of age). They are
wages to all employees in full at least twice a
                                                        not required to provide paid sick time, holidays
calendar month. Provisions are to be made for
                                                        or snow days.
cashing of payroll checks. No deductions shall be
made from employee’s wages except for state
                                                        Termination - Generally, employers may
or federally mandated deductions or amounts
                                                        terminate employees at any time without
authorized by employees, either in writing or
                                                        notice or reason, and are not required to
under a collective bargaining agreement.
                                                        pay severance. The Department of Labor &
                                                        Workforce Development may intervene if
Discrimination In Wages - Employers are not
                                                        the termination is a result of the employee
permitted to discriminate in the rate or method
                                                        filing a wage complaint against the employer.
of payment of wages because of the sex of the
                                                        Termination may also violate law if the
                                                        termination constitutes discrimination.

Worker Health and Safety - This area is now
                                                        For specific information pertaining to payment
within the province of the federal Occupational
                                                        of wages, discrimination in wages or worker
Safety and Health Administration (OSHA).
                                                        health and safety, please contact:
However, the Department of Labor & Workforce
Development operates a free on-site consulting          The Division of Workplace Standards
and advisory service to assist employers                609-292-2313
complying with federal regulations.

                           For more information visit
Costs of Doing Business

Industrial Site Recovery Act- ISRA                  This type of buyer protection program has been
                                                    the norm for years in residential and commercial
Recovery Act
                                                    applications in termite, electrical, sewage and
A business planning to buy land to build offices,   plumbing inspections. It is crucial that potential
homes or a commercial facility on a former          buyers and lenders know that what they are
industrial site should know what is above and       buying is a fair return for their investment.
below the ground. Business that are considering
buying another company’s operation must             New Jersey’s ISRA goes the next step in
be willing to assume the liabilities for past       responding to the realities of industrial society
improper handling of hazardous materials.           and is designed to ensure that sellers do not
These liabilities for cleanup and damages may       leave behind more than the buyer bargained
far surpass the value of the operation.             for.

                                                    New Jersey’s ISRA Program
Owners may find it increasingly difficult to
borrow the funds from mortgage lending
institutions to buy that plant or site for
expansion because property used for collateral
may have been rendered worthless due to the
discovery of environmental contamination.
Today, environmental lawsuits are common.
State and federal governments and the courts
take an increasingly tough stance against those
responsible for the existence of contamination,
which can mean the difference between being
considered innocent or being considered
responsible for millions of dollars in damages
and cleanup costs.

New Jersey offers the nation’s model buyer
protection program for a wide variety of
manufacturing operations covered by the
state’s Industrial Site Recovery Act (ISRA).

Buyers and lenders are assured that any New
Jersey industrial operation subject to ISRA be
fully evaluated for contamination, above and
below the ground.

Under ISRA, any environmental contamination,
which poses a risk to public health and the
environment, will be required to be identified
and remediated by the seller.

Section 3: Financial Information

Small Business Start-up Money                          Banks and Credit Unions - The most common
                                                       source of funding, banks and credit unions,
Raising Money
                                                       will provide a loan if it can be shown that your
One key to a successful business start-up and
                                                       business is sound.
expansion is your ability to obtain and secure
appropriate financing. Raising capital is the
                                                       Borrowing Money - It is often said that small
most basic of all business activities. But as
                                                       business people have a difficult time borrowing
many entrepreneurs quickly discover, raising
                                                       money. This is not necessarily true.
capital may not be easy.
                                                       Banks are in the business to make money
It can be a complex and frustrating process. But
                                                       and the way they make money is by lending
if the entrepreneur is informed, well prepared
                                                       money. However, it is the inexperience of
and has planned effectively, raising money
                                                       small business owners in financial matters that
for the business will not be a painstaking
                                                       prompts many small business loan requests to
                                                       be turned down.

This information summary focuses on the ways
                                                       To be successful in obtaining a loan, be prepared
a small business can raise money and describes
                                                       and organized. You must know exactly how
how to prepare a loan proposal.
                                                       much money you need, why it’s needed and
                                                       how it will be paid back. Borrowers must be
Where To Find The Money You Need
                                                       able to convince a lender that they are a good
There are several sources to consider when             credit risk. Requesting a loan when not properly
looking for funding. It is important to explore        prepared makes a statement to the lender. That
all options before making a decision.                  statement is “High Risk!”

Personal Savings - Most new businesses are             Types of Business Loans
started with the primary source of capital
                                                       Short-Term Loans - Loans that are paid back in
coming from personal savings and other forms
                                                       less than one year. Types of short-term loans
of personal equity.

Friends and Relatives - Many entrepreneurs               • Working Capital Loan
look to private sources such as friends and              • Accounts Receivable Loan
family when starting out in a business venture.          • Line of Credit (Revolving Credit Line)
In many instances, money is lent at no interest
or with low interest, which can be beneficial          Long-Term Loans - Loans with maturities
when getting started.                                  greater than one year but usually less than
                                                       seven years. These loans are used for major
Venture Capital Firms - These firms provide            business expansions, purchases of real property,
start-up and other needed money for new                acquisitions and in some instances start-up
companies in exchange for equity or part               costs. Types of long-term loans include:
ownership.                                               • Personal Loan
                                                         • Commercial Mortgage
                                                         • Term Loan

                          For more information visit
Financial Information

How To Write A Loan Proposal                       Financial Information
                                                     • Provide financial statements including
A loan approval request depends on how well
                                                       balance sheets and income statements for
the businessperson presents themselves, the
                                                       the past three years. If just starting out,
business and its financial needs to a lender.
                                                       provide a projected balance sheet and
Remember, lenders want to make loans but
                                                       income statement.
they want to make good loans, loans they
                                                     • Prepare a personal financial statement on
know will be repaid. The best way to improve
                                                       yourself and other principal owners of the
your chances of obtaining a loan is to prepare a
written loan proposal. A good loan proposal will
                                                     • List all collateral that could be pledged to
contain the following key elements:
                                                       the bank as security for the loan.
General Information

  • Provide the business name, address, names      How a Loan Request Is Reviewed
    of principals and the social security number   A loan officer’s primary concern when reviewing
    of each principal.                             a loan request is whether or not the loan will
  • State the purpose of the loan and provide      be repaid. To help answer this question, many
    exactly what the loan will be used for and     loan officers will order a copy of your business
    why it is needed.                              credit report. Using the credit report and the
  • Provide the amount required in the exact       information you have provided, the lending
    amount needed to achieve your purpose.         officer will consider the following:

Business Description                                 • Have the principal(s) invested savings or
  • Give the history and nature of the business        personal equity in the business totaling at
    with details of the business’s age, number         least 25 percent to 50 percent of the loan
    of employees and current business assets.          requested? Remember a lender or investor
  • Provide details on the ownership structure         will not finance 100 percent of the business.
    (the company’s legal structure).                 • Does the principal(s) have a sound record
                                                       of credit worthiness as indicated by your
Management Profile                                     credit report, work history and letters of
                                                       recommendations? This is very important.
  • Develop a management profile detailing           • Does the principal(s) have sufficient
    the responsibility of each principal staff         experience and training to operate a
    member.                                            successful business?
  • Include   the    individual’s background,        • Has the principal(s) prepared a loan proposal
    education,    experience,     skills  and          and business plan that’s demonstrates
    accomplishments.                                   an understanding of the business and
                                                       commitment to the success of the business?
Market Information                                   • Does the business have sufficient “cash
  • Provide a clear definition of the products         flow” to make the monthly payments on
    and markets.                                       the loan request?
  • Identify competition and explain how the
    business competes in the marketplace.
  • Profile the company’s customers and explain
    how the business can satisfy their needs.

Financial Information

How Much Money To Borrow                                 A clear description of your experience and
                                                         management capabilities, as well as the
Once the building and equipment needs have
                                                         expertise of other key personnel, will also be
been met, the business owner(s) must have
enough money on hand to cover operating
expenses for at least a year. These expenses
                                                         Selecting and Developing a Relationship with
include salaries and money to repay the loan.
                                                         a Bank

One of the leading causes of business failure            When business owners have trouble with banks
is insufficient start-up capital. Consequently,          the major problem is generally communication.
business owners should work closely with your            It’s important that bankers be informed about
accountant to estimate cash flow needs.                  the business and it’s equally important that
                                                         business owners be informed about a bank’s
Alternatives to Financing a Business                     policies and procedures.

Committing personal funds is often the first
                                                         Open communication with the bank cannot be
financing step. It is certainly the best indicator
                                                         overemphasized. A well-informed banker may
of the owner’s seriousness about the business.
                                                         anticipate needs and be able to react quickly to a
Risking personal money gives confidence to
                                                         request. In a problem loan situation the banker
others investing in the business.
                                                         may be more likely to work with the borrower
                                                         than in a situation where communication has
While banks are an obvious source of funds,
                                                         been absent.
consider a partner for additional financing.
Other loan sources include commercial finance
                                                         Business owners and bankers should meet to
companies, venture capital funds, local
                                                         discuss what is needed and expected by each
development companies and life insurance
companies. Trade credit, selling stock and
equipment leasing offer alternatives to
                                                         Laying “Free Money” Rumors to Rest
                                                         Be aware of advertisements or programs from
Getting a Loan                                           so-called experts that offer “insider information”
                                                         on financing a business with claims the state
Initially, the lender will ask four questions:
                                                         government or other public organizations have
  • How much is the borrower requesting?
                                                         funds in the form of grants or extremely low-
  • Purpose of the loan?
                                                         rate loans are available to the following groups:
  • Method of repayment?
  • How will the loan be collateralized?                   • Individuals who want to open a business
                                                           • Companies in severe financial trouble
When you apply for a loan, provide projected               • Minority, women, or foreign-born
financial statements along with a clear business             entrepreneurs
plan that supplies the name of the firm,
location, production facilities, legal structure
and business goals. Refer to Section 1 for

                            For more information visit
Financial Information

The “insider information” is usually no more         EDA assists a variety of industries and business
than common business guidelines and a list of        sectors and works closely with banks, private
government agencies that can be found in a           investors, underwriters and other sources of
library, telephone book, or on the Internet.         capital to help businesses and other entities
                                                     finance projects.
Once a person begins calling these numbers to
request money they quickly find out that the         Through a wide array of financing resources,
programs often have been misrepresented.             and technical support, EDA has helped to
                                                     strengthen and grow New Jersey’s economy.
The simple truth is that business owners
usually must meet stringent criteria to secure       For an overview of all the assistance available
private or public financing. Most qualifications     through EDA and other state agencies, visit
for capital revolve around having a sound         or   call   the
business plan, healthy financial statements,         Business Action Center at 866-534-7789.
personal investment, business experience and
substantial collateral.                              Business Incentive Grants

State Programs of Financial                          Business Retention and Relocation Assistance
Assistance                                           Grant (BRRAG)

New Jersey Economic Development Authority            BRRAG preserves jobs from being relocated out
Overview                                             of state.

Whether a business is in need of financing to
                                                     BRRAG offers grants as credit against business
expand operations, market a new product or
                                                     tax liability. Grant values cannot exceed 80
build a larger facility; a municipality seeking to
                                                     percent of tax payments to the state. The
attract a major corporation to its community; or
                                                     BRRAG Tax Credit Transfer allows for the sale
a developer or non-profit organization needing
                                                     of unused tax credits.
funds for a major redevelopment project, the
New Jersey Economic Development Authority
                                                     New Jersey also has a Sales and Use Tax
(EDA) is ready to put its resources to work.
                                                     Exemption that can be used in combination
                                                     with BRRAG. It allows sales tax exemptions
EDA is a state agency whose mission is to
                                                     on the purchase of fixtures, furniture, building
stimulate business development, job creation
                                                     materials and equipment needed for business
and community revitalization throughout
the state. The authority assists small, mid-
sized and large businesses, not-for-profit and
community development organizations to build
facilities, purchase equipment and develop new
products and services while offering incentives
that encourage companies to expand in New
Jersey and invest in economically depressed

Financial Information

Business   Employment     Incentive    Program         Low-Interest Financing Opportunities
                                                       New Jersey, through the EDA, offers a variety of
BEIP is the incentive tool for encouraging             low-interest financing options to suit the needs
business to locate and expand in New Jersey.           of business, developers and not-for-profits.
Businesses that execute agreements under the
program and create jobs receive annual grants          Financing opportunities include low-interest
based on the number of new jobs that have              loans, loan guarantees plus tax-exempt
been created in the State of New Jersey.               bonds to support small, mid-size and large
                                                       businesses, not-for-profit and community
BEIP grants may run up to 10 years and can             development organizations that build facilities,
equal 10 percent to 80 percent of the total            purchase equipment and develop new products
amount of state income taxes generated by              and services. Opportunities are available to
the grantee’s newly created jobs during the            a broad spectrum of businesses, including
calendar year.                                         manufacturers, technology-based enterprises,
                                                       services, logistical operations and tourism and
To qualify, a business must demonstrate                arts-related organizations, among others.
that the BEIP grant is a “material” factor for         The EDA also partners with private banks as
expanding or relocating jobs in New Jersey,            well as the U.S. Small Business Administration
that it is financially viable and that it will         (SBA) and other lenders to offer low-interest
create a minimum of 25 new jobs or 10 new              financing packages and works closely with
jobs if the business is within the high tech or        applicants to enhance access to capital to meet
biotechnology industries.                              their financing needs.

For more information on BEIP and BRRAG grants          The Edison Innovation Fund
and other programs available to businesses
                                                       The Edison Innovation Fund provides an
visit or call the
                                                       integrated set of resources to support life
Business Action Center at 866-534-7789.
                                                       science and technology initiatives throughout
                                                       the stages of discovery, development and
                                                       commercialization. The Fund was designed for
                                                       companies involved with developing renewable
                                                       energy solutions, medical devices, healthcare,
                                                       information technology, stem cell research,
                                                       nanotechnology, and telecommunications.

                          For more information visit
Financial Information

State Resources for Brownfields                    Pleasantville and Vineland) have access to
Redevelopment                                      financial assistance from the initial $2 million
                                                   in funding that has been provided through a
Brownfields   and    Contaminated           Site
                                                   grant from the U.S. Environmental Protection
Reimbursement Program (BCSRP)
                                                   Agency. Eligible projects are being funded on a
BCSRP provides financial incentives for            first-come, first-serve basis.
businesses and developers to clean up and
redevelop polluted sites.                          To learn more about the Brownfields
                                                   reimbursement, loan programs and other
Eight state taxes, including sales, business use   programs available to businesses visit www.
and corporate taxes are eligible to be used to or call the Business
reimburse the developer for remediation costs.     Action Center at 866-534-7789
The BCSRP also allows for the reimbursement
of sales taxes associated with the purchase of     Investigation and Remediation
building materials. Because reimbursement is
                                                   New Jersey also offers financing assistance
based on tax collections, there is no financial
                                                   to municipalities, developers, businesses and
limitation on the total amount to be recovered.
                                                   homeowners to investigate or remediate sites
                                                   suspected of or known to have discharges of a
Brownfields Restoration Low-Interest Financing
                                                   hazardous substance.

Low-interest financing is also available to        Businesses may qualify for low-interest loans of
developers, businesses, municipalities and         up to $1 million for up to 10 years. Municipalities
community groups at various stages of the          may qualify for up to $2 million per year for
Brownfield restoration process. Developers and     properties they own or for which they hold a
business owners who have signed a Brownfields      tax certificate and have a comprehensive plan
and Contaminated Site Reimbursement Program        or realistic opportunity to develop or redevelop
agreement are eligible for this program.           within three years.

Interim financing is provided to eligible          Interim financing is also available for up
borrowers for meeting the costs of the             to $750,000 for up to three years at below-
remediation of a Brownfield site. The loan         market interest rates to developers/business
must be paid once reimbursements have been         owners for meeting the costs of brownfield site
received by the borrower under the Brownfield      remediation.
Reimbursement Agreement.
                                                   Borrowers must have signed a Brownfield
Brownfield Redevelopment Loan Fund                 Reimbursement        Agreement.     Anticipated
The New Jersey Brownfields Redevelopment           reimbursements must be pledged to pay
Loan Fund provides low-interest loans to           principal and interest on the EDA loan.
municipalities and developers for remediating
Brownfields so they may be developed for uses      For information on EDA redevelopment
that benefit the community and its tax base.       resources, visit
Eleven municipalities (Asbury Park, Camden,        or call 866-534-7789.
Elizabeth, Long Branch, Neptune, New
Brunswick, Paterson, Perth Amboy, Plainfield,

Financial Information

New Jersey Department of Environmental                  Innovative Technology Grants are available to
Protection                                              any qualifying person, who has a net worth
                                                        of not more than $2 million and received
Hazardous Discharge Site Remediation Fund
                                                        the approval of the New Jersey Department
                                                        of Environmental Protection for a proposed
Loans                                                   innovative technology. If a qualifying person
Loans are available to businesses or                    meets the criteria, they would be eligible for
homeowners who cannot obtain funding from               up to 25 percent of the total costs, up to a
another lending institution for 100 percent of          maximum of $1 million for the remediation.
the cost to remediate a discharge of hazardous
substances up to $1 million per year, per site.         Limited Restricted Use/Unrestricted Use Grants
The interest rate is 2 points below the Federal         are available to any qualifying person who
Discount Rate with a minimum of 5 percent,              has a net worth of not more than $2 million
which is determined by the New Jersey                   and receives the approval of the New Jersey
Economic Development Authority (NJEDA).                 Department of Environmental Protection for
The maximum loan term is 10 years.                      the implementation of a limited restricted use
                                                        remedial action or an unrestricted action. The
Grants                                                  qualifying person would be eligible for up to 25
There are three categories of grants: innocent          percent of the total costs, up to a maximum of
party, innovative technology and limited                $1 million for the remediation.
restricted/unrestricted use.   Eligibility for a
grant is not contingent upon the inability to           Petroleum, Underground Storage Tank
obtain funding or any hardship.                         Remediation, Upgrade and Closure Fund
                                                        (UST Fund)
Innocent Party Grants are available to any
                                                        Regulated Underground Storage Tanks
party who meets the following criteria:
                                                        Owners or operators of a business with leaking
  • Having acquired the property before Dec.
                                                        regulated tanks are eligible for loans, and/or
    31, 1983
                                                        grants, for tank closure and/or remediation. In
  • Not having used the hazardous substance
                                                        order to be considered eligible they must:
    found at the site and
  • Not having discharged the hazardous                   • Own or operate fewer than 10 petroleum
    substance found at the site                             underground storage tanks in New Jersey.
                                                          • Have a net worth of less than $2 million.
If a party meets these criteria, they would be            • Be able to demonstrate the inability to obtain
eligible for 50 percent of the total costs of the           a commercial loan (two bank lenders).
remediation, up to $1 million. The additional
                                                        In order to be considered for conditional
50 percent can be obtained from the Hazardous
                                                        hardship grant eligibility, business applicants
Discharge Remediation Fund (HDSRF) through
                                                        must have a net operating income before taxes
a loan or outside conventional financing.
                                                        of less than $200,000 and a personal net worth,
                                                        exclusive of applicant’s primary residence and
                                                        pension, of less than $200,000.

                           For more information visit
Financial Information

When a business is awarded a grant, the NJEDA         Assistance for New Jersey
places a lien on the facility property. If the        Technology Companies
property is operated in the same manner for 15
                                                      Recognizing the significant contributions
years, the lien will be removed. If the property
                                                      that small and medium-sized technology-
is sold during that 15-year period, the grant
                                                      based companies make to both technological
must be repaid immediately upon sale. The
                                                      and economic development, the New Jersey
grant repayment is reduced by 20 percent each
                                                      Commission on Science and Technology,
year, starting with year 11, if the property is
                                                      working in conjunction with other state
sold between year 11 and year 15.
                                                      agencies, private organizations and academic
                                                      institutions, has developed several pioneering
Remediation Loan/Grant Amounts
                                                      programs to assist New Jersey’s technology
Loans may be awarded for up to 100 percent            entrepreneurs.
of the eligible project cost up to $2 million per
facility. Loans for eligible project costs up to $3   Access to Technology Resources
million may be awarded for sites located in a         Research & Excellence Program
State-designated Planning Area (Metropolitan)
                                                      This multi-year funding program to academic
or Planning Area 2 (Suburban). Interest rates,
                                                      research centers, in collaboration with
which generally range between 2 percent and
                                                      industrial partners, is intended to create and/
the Prime Rate, are determined by the EDA.
                                                      or mature new scientific and technology areas,
Public entities are eligible for interest free
                                                      which have potential for products, services
loans, but not grants.
                                                      and processes important to the state’s future
                                                      economic development.
Conditional Hardship grants may be awarded for
up to 100 percent of the eligible project costs up
                                                      Intellectual Property Program
to $500,000 per site. Grants for eligible project
costs up to $750,000 may be awarded for sites         This program provides a funding source to
located in the State-designated Planning Area 1       University Technology Transfer offices to support
(Metropolitan) or Planning Area 2 (Suburban).         the final development and commercialization of
                                                      university held patents.
Other Eligible Entities (specific eligibility
requirements apply)
  • Tax-exempt, non-profit organizations with
    fewer than 100 paid employees
  • Duly incorporated volunteer fire, ambulance,
    first aid emergency or rescue companies
  • Independent colleges and universities of
    New Jersey

Financial Information

Federal Programs of Financial                            To qualify for an SBA guaranty, a small business
Assistance                                               must meet the 7(a) criteria and the lender
                                                         must certify that it could not provide funding on
U.S. Small Business Administration Programs
                                                         reasonable terms except with an SBA guaranty.
The U.S. Small Business Administration (SBA) is
the largest source of long-term small business           The SBA can then guarantee as much as 85
financing in the nation. The New Jersey District         percent on loans of up to $150,000 and 75
office ranks as one of the country’s top SBA             percent on loans of more than $150,000. While
lending offices.                                         loan amounts and guaranty percentages vary
                                                         among different types of SBA 7(a) loans, the
In order to determine whether you qualify, or if         maximum 7(a) loan amount is $2 million.
an SBA business loan best suits your financing           The maximum amount of an SBA guaranty is
needs, please read the following carefully. For          $1.5 million. Borrowers seeking funding for
more details on the SBA and its programs, visit          larger projects may wish to consider the SBA’s
its Web site at                          “504” Loan Program which has higher loan
The 7(a) Loan Guaranty Program
                                                         How it Works
The 7(a) Loan Guaranty Program is the SBA’s
primary loan program. The SBA reduces risk to            A borrower submits a loan application to a
lenders by guaranteeing major portions of loans          lender for initial review. If the lender approves
made to small businesses. This enables the               the loan subject to an SBA guaranty, a copy
lenders to provide financing to small businesses         of the application and a credit analysis are
when funding is otherwise unavailable on equity          forwarded by the lender to the nearest SBA
favorable terms.                                         office.

The eligibility requirements and credit criteria         SBA’s review and approval process is
of the program are very broad in order to                streamlined for the Certified & Preferred
accommodate a wide range of financing needs.             Lenders program and the SBAExpress lenders.
When a small business applies to a lending               After SBA approval, the lending institution
institution for a loan, the lender reviews the           closes the loan and disburses the funds.
application and decides if it merits a loan on its
own or if it requires additional support in the          Monthly loan payments are made directly to
form of an SBA guaranty.                                 the lender. As with any loan, the borrower is
                                                         responsible for repaying the full amount due.
The lender may then request an SBA guaranty.
In guaranteeing the loan, the SBA assures the            Use of Proceeds
lender that, in the event the borrower does not
                                                         A borrower can use a 7(a) loan to: expand
repay the loan, the government will reimburse
                                                         or renovate facilities; purchase machinery,
the lending institution for a substantial portion
                                                         equipment,      fixtures     and      leasehold
of its loss.
                                                         improvements;      finance   receivables   and
                                                         augment working capital; refinance existing
By providing this guaranty, the SBA is able
                                                         debt if certain conditions are met; finance
to help tens of thousands of small businesses
                                                         seasonal lines of credit; construct commercial
every year get financing they would not
                                                         buildings; and/or purchase land or buildings.
otherwise obtain.
                            For more information visit
Financial Information

Terms, Interest Rates and Fees                       On loans with maturities of more than one
                                                     year, the guaranty fee is 2 percent on loans up
The length of time for repayment depends on
                                                     to $150,000; 3 percent on loans of $150,000
the use of the proceeds and the ability of your
                                                     to $700,000; and 3.5 percent on loans over
business to repay: usually five to seven years
                                                     $700,000. For loans greater than $1 million,
for working capital and up to 25 years for fixed
                                                     an additional .25 percent guaranty fee will
assets such as the purchase or major renovation
                                                     be charged for that portion greater than $1
of real estate or purchase of equipment.
                                                     million. That is, the portion up to $1 million
                                                     would be charged a 3.5 percent guaranty fee,
Both fixed and variable interest rates are
                                                     with the portion over $1 million being charged
available. Rates are pegged at no more than
                                                     3.75 percent.
2.25 percent over the lowest prime rate (as
published in the Wall Street Journal) for loans
with maturities of less than seven years and up
to 2.75 percent above prime for maturities of        Borrowers must pledge sufficient assets, to the
seven years or longer.                               extent that they are reasonably available, to
                                                     adequately secure the loan. Personal guaranties
For loans under $50,000, the maximum rate            are required from all the principal owners of
must not exceed prime plus 3.25 percent if the       the business.
maturity is less than seven years and prime
plus 3.75 percent if the maturity is seven years     Liens on personal assets of the principals may
or more. For loans of $25,000 or less, the           be required. However, in most cases a loan will
maximum interest rate must not exceed prime          not be declined where insufficient collateral is
plus 4.25 percent if the maturity is less than       the only unfavorable factor.
seven years, and prime plus 4.75 percent, if
the maturity is seven years or more.                 Eligibility

                                                     Businesses generally must be operated for
The SBA charges the lender a nominal fee to
                                                     profit and fall within the size standards set by
provide a guaranty and the lender may pass
                                                     the SBA. The SBA determines if the business
this charge on to the borrower. The fee is based
                                                     qualifies as a small business based on the
on the maturity of the loan and the dollar
                                                     average number of employees during the
amount that the SBA guarantees. On any loan
                                                     preceding 12 months or on sales averaged
with maturity of one year or less, the fee is just
                                                     over the previous three years. Loans cannot be
0.25 percent of the guaranteed portion of the
                                                     made to businesses engaged in speculation or

Financial Information

Small Business Size Standards                             Common requirements include the following:

     • Manufacturing – Majority at 500 employees;           • Purpose of the loan
       some industries at 750 to 1,500 employees            • History of the business
     • Wholesaling - 100 employees                          • Financial statements for three years
     • Services – most common standard is                     (existing businesses)
       average annual receipts not to exceed $6.5           • Schedule of term debts (existing businesses)
       million; some specialized services at $21            • Aging of accounts receivable and payable
       million to $27 million in sales                        (existing businesses)
     • Retailing – most common standard is                  • Projected opening day balance sheet (new
       average annual receipts not to exceed $6.5             businesses)
       million; several retail businesses at $19.9          • Lease details
       million to $25 million in sales                      • Amount of investment in the business by
     • General construction - average annual                  the owner(s)
       receipts not to exceed $ 31 million                  • Projections of income, expenses and cash
     • Special trade construction - average annual            flow
       receipts not to exceed $13 million                   • Signed personal financial statements
     • Agriculture – most common standard is                • Personal résumé(s)
       average annual receipts not to exceed
       $750,000; some groups at $1.5 million at           What the SBA Looks For
       $11.5 million in sales
                                                          In addition to documentation needed, the SBA
                                                          needs to know more about you and your plan to
Applying for a loan
                                                          be sure that planning and thorough forethought
When applying for a loan, you must prepare                has been given to your enterprise. The SBA
a written loan proposal. Make your best                   looks for the following elements to aid them in
presentation in the initial loan proposal                 their risk assessment:
and application; you may not get a second
                                                            • Good character
                                                            • Management expertise and commitment
                                                              necessary for success
Always begin your proposal with a cover letter
                                                            • Sufficient funds, including the SBA
or executive summary. Keep this cover page
                                                              guaranteed loan, to operate the business on
simple and direct. When writing your proposal,
                                                              a sound financial basis (for new businesses,
don’t assume the reader is familiar with your
                                                              this includes the resources to meet start-up
industry or your individual business. Always
                                                              expenses and the initial operating phase)
include industry-specific details so your reader
                                                            • Feasible business plan
can understand how your particular business is
                                                            • Adequate equity or investment in the
run and what industry trends affect it.
                                                            • Sufficient collateral
Documentation requirements vary with each
                                                            • Ability to repay the loan on time from the
lender. Be sure to contact them for the specific
                                                              projected operating cash flow
information you must supply.

                             For more information visit
Financial Information

                        Specialized Programs Under 7(A)

                        There are a number of special loan guaranty
                        programs under the 7(a) program that address
                        specific needs of start-up or established

                        They are governed, for the most part, by the
                        same rules, regulations, fees, interest rates,
                        etc., as the regular 7(a) loan guaranty. Your
                        lender can advise you of any variations.


                        SBAExpresss provides additional incentives
                        to lenders to make small business loans.
                        Participating banks use their own documentation
                        and procedures to approve and service
                        loans of up to $350,000. In return, the SBA
                        guarantees up to 50 percent of each loan and
                        provides expedited processing, often approving
                        applications within 36 hours.        SBAExpress
                        also provides revolving lines of credit of up to
                        $350,000 for terms of up to seven years.

                        Low Documentation Loan (LowDoc)

                        For small business loans of $150,000 or less,
                        LowDoc features a one-page SBA application,
                        cutting the paperwork burden for both small
                        businesses and lending institutions.

                        Once the applicant has satisfied the lender’s
                        requirements, the lender and applicant
                        together complete the SBA’s one-page guaranty
                        application. If approved, the SBA guarantees
                        up to 85 percent of the loan, with a quick
                        turnaround to the lender.

Financial Information

CAPLines                                                  The new Patriot Express Loan is offered by SBA’s
                                                          network of participating lenders nationwide and
There are five Short Term Loans and Revolving
                                                          features our fastest turnaround time for loan
Lines of Credit programs under CAPLines, which
                                                          approvals. Loans are available up to $500,000
provide financing for the short-term, cyclical
                                                          and qualify for SBA’s maximum guaranty of up
working capital needs of small businesses.
                                                          to 85 percent for loans of $150,000 or less and
                                                          up to 75 percent for loans over $150,000 up to
CAPLines may be used to: finance seasonal
                                                          $500,000. For loans above $350,000, lenders
working capital needs; finance direct costs
                                                          are required to take all available collateral.
needed to perform construction, service and
supply contracts; finance direct costs associated
                                                          The Patriot Express Loan can be used for
with commercial and residential construction
                                                          most business purposes, including start-up,
without a firm commitment for purchase;
                                                          expansion, equipment purchases, working
finance operating capital by obtaining advances
                                                          capital, inventory or business-occupied real-
against existing inventory and accounts
                                                          estate purchases. Patriot Express Loans feature
receivable; or consolidate short-term debt.
                                                          SBA’s lowest interest rates for business loans,
                                                          generally 2.25 percent to 4.75 percent over
Patriot Express Pilot Loan Initiative
                                                          prime depending upon the size and maturity of
The U.S. Small Business Administration has                the loan.
announced the SBA’s Patriot Express Pilot
Loan Initiative for veterans and members of               Defense Loan and Technical Assistance (DELTA)
the military community wanting to establish or
                                                          The DELTA Program provides both financial and
expand small businesses.
                                                          technical assistance to help defense-dependent
                                                          small firms adversely affected by defense cuts
Eligible military community members include:
                                                          diversify into the commercial market.
     • Veterans
     • Service-disabled veterans                          Loans must be used to retain jobs of defense
     • Active-duty service members eligible for the       workers, create new jobs in impacted
       military’s Transition Assistance Program           communities, or to modernize or expand in
     • Reservists and National Guard members              order to remain in the national technical and
     • Current spouses of any of the above                industrial base.
     • The widowed spouse of a service member
       or veteran who died during service or of a         Loans may be made under the 7(a) and/or 504
       service-connected disability                       programs. The maximum loan amount for a
                                                          DELTA loan under the 7(a) program is $2 million.
The SBA and its resource partners are focusing            The maximum for a DELTA loan under the 504
additional efforts on counseling and training to          Certified Development Companies debenture
augment this loan initiative.                             program is $4 million. The SBA also leverages
                                                          private-sector resources to provide a full range
                                                          of management and technical assistance.

                             For more information visit
Financial Information

The Certified and Preferred Lenders Program         Generally, a manufacturer must create or
                                                    retain one job for every $100,000 provided by
The most active and expert lenders qualify
                                                    the SBA. Programs from the 504 loans must be
for the SBA’s Certified and Preferred Lenders
                                                    used for fixed asset projects such as purchasing
Program. Participants are delegated partial or
                                                    land and improvements, including existing
full authority to approve loans, which results in
                                                    buildings, grading, street improvements,
faster service. Certified (CLP) lenders are those
                                                    utilities, parking lots and landscaping;
that have been heavily involved in regular SBA
                                                    construction of new facilities, or modernization
loan-guaranty processing and have met certain
                                                    or converting existing facilities; or purchasing
other criteria.
                                                    long-term machinery and equipment.

They receive a partial delegation of authority
                                                    The 504 Loan program cannot be used for
and are given a three-day turnaround on
                                                    working capital or inventory, consolidating or
their applications. Preferred (PLP) lenders are
                                                    repaying debt, or refinancing.
chosen from among the SBA’s best lenders
and enjoy full delegation of lending authority.
This authority must be renewed at least every
two years and the lender’s portfolio is subject
to performance benchmarks and is examined
periodically by the SBA.

The 504 Loan Program

The SBA’s 504 Loan Program provides long-
term, fixed asset financing through certified
development companies (CDC’s).

These nonprofit organizations are sponsored
by private interests or by state and local
governments. The SBA can guarantee
debentures covering as much as 40 percent of
a 504 project, up to $1.5 million for meeting job
creation criteria or a community development

Generally, a business must create or retain one
job for every $50,000 provided by SBA. The
maximum debenture increases to $2 million
for businesses meeting certain public policy
goals and $4 million for businesses engaged in

Financial Information

The 7(M) MicroLoan Program                               For information, contact      the   intermediary
                                                         lender in your area.
The MicroLoan Program makes smaller amounts
of capital (up to $35,000) available through
                                                         Regional Business Assistance Corporation
SBA intermediaries.
                                                         247 East Front Street
                                                         Trenton, NJ 08611
Although a borrower must prove credit
worthiness and the viability of the business idea,
                                                         Service area: Bergen, Burlington, Hunterdon,
collateral and other stringent requirements will
                                                         Mercer, Middlesex, Monmouth, Morris,
be eased.
                                                         Somerset, Sussex and Warren Counties

The private non-profit intermediaries receive
                                                         Greater Newark Business Development
loans from SBA to establish a local revolving
loan fund and they re-lend the money to local
                                                         744 Broad Street, 26th floor
entrepreneurs within their designated areas.
                                                         Newark, NJ 07102
Management and technical assistance is also
available after loan closings to assist the
                                                         Service area: Statewide
borrower in the successful execution of the
business plan.
                                                         Liberty Hall Corporate Center
                                                         1085 Morris Avenue, Suite 531
                                                         Union, NJ 07083
                                                         Service area: Statewide

                                                         Cooperative Business Assistance Corporation
                                                         328 Market Street
                                                         Camden, NJ 08102
                                                         Service Areas: Atlantic, Camden, Cape May,
                                                         Cumberland, Gloucester and Salem Counties

                                                         The Small Business        Investment   Company
                                                         (SBIC) Program

                                                         There are a variety of alternatives to bank
                                                         financing for small businesses, especially
                                                         business start-ups. The Small Business
                                                         Investment Company (SBIC) fills the gap
                                                         between the availability of venture capital and
                                                         the needs of small businesses that are either
                                                         starting or growing.

43                          For more information visit
Financial Information

Licensed and regulated by the SBA, SBICs are        The SBG Program consists of the Prior Approval
privately owned and managed investment firms        program and the Preferred Surety Bond
that make capital available to small businesses     (PSB) Program. The Prior Approval program
through investments or loans.                       guarantees up to 90 percent of a surety’s loss.

They use their own funds plus funds obtained        Participants must obtain SBA’s approval for each
at favorable rates with SBA guaranties and/or       bond guarantee issued. Under the PSB program,
by selling their preferred stock to the SBA.        sureties receive a 70 percent guarantee and
                                                    are empowered to issue, service and monitor
SBICs are for-profit firms whose incentive is       bonds without SBA’s prior approval.
to share in the success of a small business. In
addition to equity capital and long-term loans,     Each of these programs targets a different
SBICs provide debt-equity investments and           segment of the contracting community and
management assistance.                              both are necessary to reach all small business
The SBIC Program provides funding to all
types of manufacturing and service industries.      The surety bond guarantee programs are a
Some investment companies specialize in             major factor in the surety reinsurance and
certain fields, while others seek out small         contracting industries and are recognized
businesses with new products or services            as a primary stabilizing influence by those
because of the strong growth potential. Most,       industries.
however, consider a wide variety of investment
opportunities.                                      For more information on the SBA contact:
The Surety Bond Program                   

The Surety Bond Guarantee (SBG) Program
was developed to provide small and minority
contractors with opportunities for which they
would not otherwise bid.

The Office of Surety Guarantees administers
the SBG Program through a private-public
partnership between the federal government
and the surety industry. SBA guarantees bid,
performance, payment and ancillary bonds
issued by surety companies for construction,
service and supply contracts, and reimburses
the sureties a percentage of the losses sustained
if the contractor defaults.

Contracts of up to $2 million are eligible for
the SBA’s bond guarantee. SBA’s guarantee
provides the incentive to issue bonds to
contractors who could not otherwise compete
in the contracting industry.
Section 4: Franchising

What is Franchising?                                     In some cases, franchisees are required to
                                                         conduct every step of their operation in strict
Franchising is a form of licensing by which the
                                                         conformity with a manual furnished by the
owner (the franchiser) of a product, service or
                                                         franchiser. In return, the individual franchisee
method obtains distribution through affiliated
                                                         can share in the good will built up by all other
dealers (the franchisees). The holder of the
                                                         outlets that bear the same name.
right is often given exclusive access to a defined
geographical area.
                                                         A company which depends upon the successful
                                                         operation of franchise outlets needs individuals
The product, method or service being marketed
                                                         who are willing to learn the business and have
is identified by a brand name and the franchiser
                                                         the energy for the considerable amount of
maintains control over the marketing methods
                                                         effort needed to be profitable.
                                                         The franchiser can supply the essentials for
In many cases, the operation resembles that of
                                                         the successful operation of the outlet. Among
a large chain with trademarks, uniform symbols,
                                                         the services franchisers may provide to the
equipment, storefronts and standardized
                                                         franchise operators are:
services or products, and maintains uniform
practices.                                                 • Location analysis and counsel
                                                           • Recommending methods of operation
The International Franchise Association, the               • Store development aid - including lease
major trade association in the field, defines                negotiation
franchising as “a continuing relationship                  • Store design and equipment purchasing
in which the franchiser provides a licensed                • Initial employee and management training
privilege to do business, plus assistance                    and continuing management counseling
in organizing, training, merchandising and                 • Advertising and merchandising counseling
management in return for a consideration (fee)               and assistance
from the franchise.”                                       • Standardized procedures and operations
                                                           • Centralized purchasing with consequent
However, the owner of a franchised business                  savings
must give up some options and freedom of                   • Financial assistance in the establishment of
action in business decisions that would be open              the business
to the owner of a non-franchised business.
                                                         Investigate the Franchise
The franchisee is not entirely his/her own boss          The second step is to investigate the franchiser
because, in order to maintain the distinctiveness        and the franchise business as thoroughly as
and uniformity of the service, to ensure that the        possible. Proceed as if buying a new car or
operations of each outlet will reflect favorably         a new home. Comparison shop, look at more
on the organization as a whole and to protect            than one franchise.
and build its good will, the franchiser usually
exercises some degree of continuing control              But don’t stop your investigation there. Call
over the operations of franchisees and requires          or write several franchisers being considered
them to meet stipulated standards of quality.            to get more detailed information. In addition,
                                                         investigate the territory being considered and
                                                         determine the market potential for the product
                                                         or service that will be offered.
                            For more information visit

Study Disclosure Statements                          Question Earnings Claims

The franchiser is required by law to give            A franchiser can only provide information about
you a disclosure statement (sometimes                the sales, income or profits of the franchised
called an “offering circular” or “prospectus”),      business, if it does so, in Item 19 of its offering
which describes the franchise system and             circular.
your obligations, as well as certain required
information such as the franchise company’s          Upon request, franchisers are required by law to
litigation and bankruptcy history and a list of      provide detailed substantiation to prospective
current and former franchisees. It will be a great   franchisees of any earnings claims they make.
help in comparing one franchise with another,        Be sure to note what percentage of the
understanding the risks involved and learning        franchiser’s present franchisees has actually
what to expect and what not to expect from           had sales, profits or income that equaled or
the franchise. Study the disclosure statement        exceeded the amount claimed. Find out how
carefully before making an investment decision.      many franchisees did that well during their
                                                     first year of operation and when their operating
Check Out Disclosures                                results may not have been as good.

Read the disclosure statement carefully and
                                                     A new franchise’s first year operating results
compare it to other disclosure statements.
                                                     are more likely to equal to those of other first
Check the accuracy of the information disclosed.
                                                     year franchises than those that have been in
Contact several of the franchisees listed in the
                                                     business for several years.
disclosure statement and ask them about their
experience in the business. They can verify that
the information provided and any other claims
                                                     Investing in a Franchise
that are made by the franchiser accurately           Be Aware Of Risks
reflect their experience in the business.
                                                     Everyone knows that there is some risk in
                                                     investing money in the stock market. Investing
Look for franchisees that have been in the
                                                     in a franchise is similar. In some ways the risks
business for at least a year. If none have been
                                                     are even greater than the risks of buying stock.
in business that long because the franchise is
                                                     A franchise owner can expect to invest not only
a new one, the risks you will run by investing
                                                     time, but also a good part of his/her working
in the franchise will obviously be higher than
those of a well-established franchise. Also talk
to franchisees that have been in business for
                                                     When considering a franchise, it is critical to
only a few years. They will be able to give you
                                                     collect information from people who have
the best advice about what to expect during
                                                     already been running a franchise you are
your first year of operation. This is important
because the first year of operation is often the
period during which the success or failure of a
                                                     Franchisees who have made the decision
new franchise is determined.
                                                     to purchase and operate the franchise will
                                                     often explain first-hand about the financial
                                                     arrangements, the start-up and ongoing
                                                     assistance provided by the company and how
                                                     much profit can realistically be expected.


It is important to talk to several franchisees.           Goals
The time spent researching, by phone or in
                                                            • What are your goals?
person, can be important investments and may
                                                            • Do you require a specific level of annual
be the best source to gain an understanding
and insight into the day-to-day operation.
                                                            • Are you interested in pursuing a particular
Organize notes to cover all the important points
                                                            • Are you interested in retail sales or
before contacting the franchise or making an
                                                              performing a service?
on-site visit.
                                                            • How many hours are you willing to work?
                                                            • Do you want to operate the business yourself
Before Selecting A Franchise System
                                                              or hire a manager?
Before investing in a particular franchise                  • Will franchise ownership be your primary
system, carefully consider how much money                     source of income or supplement your
will have to be invested, your ability and goals.             current income?
The following checklist may help on the decision            • Would you be happy operating the business
to franchise.                                                 for the next 20 years?
                                                            • Would you like to own several outlets or
Investment                                                    only one?
     • How much money do you have to invest?
                                                          Obtain Professional Advice
     • How much money can you afford to lose?
     • Will you purchase the franchise by yourself        Obtain independent professional assistance
       or with partners?                                  in reviewing and evaluating any franchise
     • Will you need financing? If so, where can          that is being considered. Such assistance is
       you obtain it?                                     particularly important in reviewing the financial
     • Do you have savings or additional income to        statements and agreements of the franchise.
       live on while starting your franchise?
                                                          Do not assume that the disclosure statement
Abilities                                                 tells everything about the consequences of
                                                          signing a franchise agreement and related
Does the franchise require technical experience
                                                          contracts. The disclosure statement is not
or relevant education, such as auto repair,
                                                          designed to serve that purpose.
home and office decorating, or tax preparation?

                                                          The advice of a lawyer is the most important
What Skills Do You Have?
                                                          professional opinion to obtain before investing
     • Do you have computer, bookkeeping, or              in a franchise. A lawyer can advise about legal
       other technical skills?                            rights in entering a franchise agreement and
     • What specialized knowledge or talents can          any legally binding obligations.
       you bring to a business?
     • Have you ever owned or managed a

                             For more information visit

In addition, a lawyer may be able to suggest            • A reliable, affordable product or service.
important changes in the contract(s) to better          • A training program that will provide hands-
protect the franchisee’s interests. Attorneys will        on experience in every operation of the
advise about any state and local laws that may            business.
affect the franchise business and will assist with      • A detailed and readable operations manual,
the taxation and personal liability questions             to guide the franchisee through start-up
that must be considered in establishing any               and well into successful operations.
new business.                                           • Support, for the franchisee and his staff
                                                          on everything from site selection to decor,
The cost of obtaining legal advice will be                inventory and grand opening ads.
relatively small in comparison to the total initial     • Managerial training, including regional and
investment for a franchise. Moreover, the cost            national meetings, seminars and assistance
of legal advice at the outset is less than the cost       in operations and accounting procedures.
of late representation to solve legal problems          • Marketing, merchandising and advertising
that could have been avoided.                             support, everything from selecting retail
                                                          decor and display ideas to setting up co-op
At the very least, prospective franchisees should         advertising assistance.
be certain that every promise that’s made by            • Monthly newsletters to keep the franchisees
the franchiser and his representative is stated           informed of the latest activities and trends.
clearly in the written franchise agreement.               Keep tabs on the competition and feature
If such promises do not clearly appear in the             the successful efforts of different franchise
contracts you sign, the franchiser may not be             operators.
legally obligated to perform in accordance with         • Multi-store, multi-office or territorial
such promises.                                            expansion options. Unique designs that
                                                          invite and draw customers into the franchise
Do not assume that an investment in a                     location.
franchise is risk free or virtually risk free, just     • A continuing program of new project
because federal or state laws may provide                 development and testing.
some protection. That protection is subject             • Purchasing benefits from the franchiser, to
to a limitation and may not be able to remedy             buy products in volume with savings.
every case.                                             • The strength of a national, regional or
                                                          local network of independently owned
Investing in a franchise     will always involve          and operated franchisees and all franchise
a certain degree of risk.    Franchisees should           operations.
do everything possible to    protect themselves
                                                      Note: The State of New Jersey does not
rather than rely on legal    rights for potential
                                                      regulate franchises.
                                                      For more information contact:
What a Good Franchise Program                         International Franchise Association
Should Offer You                                      1350 New York Avenue, NW, Suite 900,
  • A franchiser that appears to be stable in         Washington, DC 20005-4709
    every way, including financial wherewithal.       202-628-8000
  • A federally registered trademark and a state      Web:
    registered trade name.                            E-mail:

Section 5: Procurement Opportunities

Procurement Opportunities                                   Buyers from the various state agencies,
                                                            commissions, colleges and universities use this
Procurement with the State
                                                            directory to find businesses that provide goods
New Jersey offers a single source of information            and services that meet their procurement
for you to access bid opportunity information.              needs, as well as for prime contractors to
This database allows businesses to obtain bid               identify potential subcontractors.
opportunity information from more than 100
entities including state agencies, authorities,             Database Benefits for Small, Minority
commissions, state colleges and universities.               & Women-Owned Businesses:

                                                              • A Free listing in a searchable, central
This Bid Opportunity Database and related
services offers:
                                                              • Optional   e-mail  notification of bid
                                                                opportunities that match your business
     • A searchable list of opportunities by
                                                                commodity code
       commodity code and by state entity
     • A detailed summary information for each
                                                            Database Benefits for the Buyers & Prime
     • Contact information and/or link to the Web
       site of the originating entity (if applicable)         • Easy access to a pool of potential small,
     • Opt-in    e-mail    notifications    as    new           minority and women-owned vendors
       opportunities are posted                               • Search by commodity code, and business or
                                                                contractor’s name
Bid Opportunity Notification Service                          • Ability to develop a diverse vendor prospect
                                                                list for both informal and formal bidding
Opt-in to receive e-mail notifications about new
bid opportunities as they become available
for the commodity code(s) specific to your
                                                            An Important Note: A vendor can declare as a
selected interest. This insures that the business
                                                            small, minority, and or women-owned business
community received timely and pertinent
                                                            without being registered as a Small Business
information     regarding    state    purchasing
                                                            Enterprise or certified as a Minority and/or
                                                            Woman’s Business Enterprise with the Division
                                                            of Revenue.
Small, Minority & Women Businesses

To better promote the State’s small, minority
and women-owned businesses, the Division of
Minority & Women Business Development hosts
an online directory of small businesses, which
include minority and women-owned businesses.
Using this directory, business owners can self-
declare as a small, minority and/or women-
owned business to promote their goods and
services directly to state purchasing agents
and to contractors who may not be familiar
with their company.

                               For more information visit
Procurement Opportunities

Therefore it is the responsibility of the State      The businesses must be independently owned
entity and/or prime contractor to verify the         and operated with its management responsible
validity of the information, for example whether     for daily and long-term operations and owning
or not a company is a registered SBE and/or          at least 51 percent of the business.
certified M/WBE. In addition, registration and/
or certification may be required before a vendor     Participating businesses must be incorporated
can bid on a specific opportunity.                   or registered to do business in the state and
                                                     have their principal place of business in New
NOTE: Filing an application does not                 Jersey, which is defined as either 51 percent or
automatically guarantee award of a purchase          more of its employees working in New Jersey,
order or state contract.                             as evidenced by the payment of New Jersey
                                                     unemployment taxes, or 51 percent or more
For further information contact New Jersey’s         of its business activities taking place in New
Business Action Center at 866-534-7789 or            Jersey, as evidenced by its payment of income
visit                     or business taxes. The business must be a sole
                                                     proprietorship, partnership or corporation with
Set-Aside and Certification Office                   100 or fewer full-time employees.

The Small Business Set-Aside Act
                                                     Eligibility for Certification of Minority and/or
The set-aside program established procedures         Women Business Enterprises
for the registration of Small Business Enterprises
                                                     Women and minority business owners seeking
(SBE) and the certification of minority/women
                                                     to do business with the State of New Jersey
business enterprises (M/WBE) for the purpose
                                                     and/or private corporations may be certified
of participating in set-aside contracts available
                                                     with New Jersey.
through 109 state agencies. The purpose of
the set-aside program is to ensure that New
Jersey based small businesses receive a fair
share of the state contracting dollars. The
Small Business Set-Aside program encourages
agencies to award 25 percent of state contracts
and purchases to SBEs.          Registered SBEs
company’s name are added to a state listing
of vendors eligible to participate in contract

Eligibility for Small Business Registration

Small business owners wanting to do business
with the State of New Jersey and be eligible
for state set-aside contracts/purchases must
be registered and approved and file the Vender       To    obtain    a  Small   Business  Vendor
Registration form with the required $100 annual      Registration form and/or the MBE/WBE
registration fee.                                    Certification form call 866-534-7789 or visit

Procurement Opportunities

Certifying Agencies                                    New Jersey Transit

In addition to State Certification, there are a        NJ Transit certifies minority- and women-
number of State Departments that also require          owned businesses as Disadvantaged Business
various types of Certification these include the       Enterprises (DBEs). Certified DBEs qualify for
Department of Transportation, the Department           federally assisted projects.
of Environmental Protection, New Jersey Transit
and the Port Authority of New York and New             If you desire to work on New Jersey Transit
Jersey. Details on these Certification programs        projects or have additional questions regarding
are outlined below.                                    certification you should contact:

                                                       New Jersey Transit Corp.
New Jersey Department of Transportation                Small/DBE Programs
The New Jersey Department of Transportation            One Penn Plaza E, Second Floor
(NJDOT) uses Small Disadvantaged Business              Newark, NJ 07106
Enterprise (SDBE) and Emerging Business                973-491-8060
Enterprise Certifications.                   

Disadvantaged minority- or female-owned                The Port Authority of New York/New Jersey
firms are certified by NJDOT in order to qualify       The Port Authority’s Certification Program
them for work designated to be done by SDBEs           certifies Minority Business Enterprises (MBEs),
on federally assisted projects. For additional         Women Business Enterprises (WBEs) and
information write:                                     Disadvantaged Business Enterprises (DBEs).
New Jersey Department of Transportation
Office of Civil Rights/Contract Compliance             A Disadvantaged Business Enterprise (DBE)
PO Box 600                                             Certification is needed to be eligible on federally
Trenton, NJ 08625-0600                                 assisted projects. For additional information or
609-530-3009                                           to obtain an application, contact:

                                                       The Port Authority of NY/NJ
                                                       Office of Business & Job Opportunity
                                                       Newark Legal Center
                                                       One Riverfront Plaza, 9th floor
                                                       Newark, NJ 07102

                          For more information visit
Procurement Opportunities

Federal 8(a) Certification                           One must demonstrate personal suffering
                                                     and not merely claim membership in a non-
The 8(a) Business Development Program is
                                                     designated group.
the U.S. Small Business Administration’s (SBA)
effort to promote equal access for socially and
                                                     To be eligible for participation in the 8(a)
economically disadvantaged individuals to
                                                     program, the applicant must also be
participate in the business sector of the nations’
                                                     economically disadvantaged.

                                                     To determine economic disadvantage, SBA will
SBA may provide participating firms with
                                                     consider the following: Personal and business
procurement, marketing, financial management
                                                     assets, personal and business net worth,
or technical assistance.      To be eligible for
                                                     personal and business income and profits, as
admission to the 8(a) program, a business
                                                     well as success in obtaining adequate financing,
must be owned, controlled and operated at
                                                     bonding and credit.
least 51 percent by one or more persons who
are socially and economically disadvantaged,
                                                     Individuals whose personal worth exceeds
citizens of the United States (aliens, including
                                                     $250,000, excluding the individual’s ownership
permanent residents are excluded) and be able
                                                     interest in the applicant concern and the
to meet other eligibility requirements.
                                                     equity in their primary residence, will not be
                                                     considered economically disadvantaged for
Individuals    considered     to    be    socially
                                                     purposes of 8(a) program entry.
disadvantaged must meet one of the following
definitions: People who have been subject to
                                                     The individuals upon whom eligibility is
racial or ethnic prejudice or cultural bias.
                                                     based must be engaged full time in the daily
                                                     management and operation of the business.
These include Black Americans, Hispanic
Americans, Native Americans, Asian Pacific
                                                     For more information about the 8(a) program
Americans, Subcontinent Asian Americans and
                                                     eligibility requirements, call 973-645-4651.
members of other minority groups designated
by SBA.
                                                     Interested persons can now apply for the 8(a)
                                                     Business Development Program online. 8(a)
People who are not members of a minority
                                                     Electronic Applications are available at www.
group but can demonstrate with substantial
evidence and documentation that they have
been subjected to chronic racial or ethnic
prejudice, cultural bias or similar circumstances
over which the individual had no control, are
also eligible.

The individual’s social disadvantage must be
chronic, long standing and substantial and
have had a negative impact on entry into and/
or advancement in the business world. It must
stem from their color, ethnic origin, gender,
physical handicap or geographical environment.

Procurement Opportunities

Small Disadvantaged Business Program                   Further requirements are that the firm must be
                                                       a small business that is owned and controlled
The SBA’s Small Disadvantaged Business
                                                       at least 51 percent by U.S. citizens and at
(SDB) Program augments SBA’s Business
                                                       least 35 percent of its employees are HUBZone
Development Program. This program allows
businesses owned by socially and economically
disadvantaged individuals to receive a ten (10)
                                                       HUBZone firms have the opportunity to
percent evaluation preference when bidding on
                                                       negotiate sole source contracts and participate
certain federal contracts.
                                                       in restricted competition limited to HUBZone
                                                       firms. Small businesses located in HUBZone
It also gives them preference when dealing
                                                       areas will be allowed a ten (10) percent
with large government contractors. To qualify,
                                                       price evaluation preference in full and open
a disadvantaged individual or individuals, who
are U.S. citizens, must own 51 percent or more
of the business and must devote full-time
                                                       HUBZones are determined by census tracts,
employment to its daily management.
                                                       which have street-by-street boundaries. For
                                                       that reason, SBA strongly suggests the use
The criteria for establishing disadvantaged
                                                       of the HUBZone locator system to define the
status are very similar to that of SBA’s 8(a)
                                                       boundaries of each HUBZone.
Business Development Program.

                                                       Details on the HUBZone Program legislation,
For further information on the Small
                                                       eligibility   requirements,     applications,
Disadvantaged Business Certification Program,
                                                       timeframes and benefits are all available at
call 973-645-4651. Submit applications online

                                                       All applicants are encouraged to apply
HUBZone Empowerment Contracting Program
                                                       electronically though the SBA Web site. All
The HUBZone Empowerment Contracting                    inquires about the program should be directed
Program seeks to encourage economic                    to, or the New Jersey
development in historically underutilized              HUBZone Liaison at 973-645-3729.
business zones – “HUBZones” – through the
establishment of preferences for award of              For further information, contact:
federal contracts to small businesses located in
                                                       U.S. Small Business Administration
such areas.
                                                       8(a) Business Development
                                                       Two Gateway Center, 15th Floor
In order to qualify for the program, a firm must
                                                       Newark, NJ 07102
be located within a designated HUBZone area.
(Please refer to the SBA New Jersey District
Office Website for locations in
New Jersey which are currently included in the
HUBZone initiative).

                          For more information visit
Procurement Opportunities

Surety Bonds
A surety bond is an instrument under which
one party guarantees to another that a third
party will perform a contract.

How Does the Bonding Process Work?

Securing a surety bond is similar to obtaining
a bank line of credit. So, just like a bank, a
surety company must know a business before
committing its assets. It will require a lot of
time and effort to establish a first relationship
with a surety company.

The surety process is focused on pre-qualifying
the firm. The surety company must be satisfied
that the contractor/vendor has met certain
criteria. The firm must:

  • Be of good character.
  • Have the capacity to meet the requirements
    of the project.
  • Have the necessary capital to support
    expected project costs.
  • Be in good standing with a bank.
  • Have established a line of credit.
  • Be a business that is well managed.

Each surety company has its own standards.
These fundamentals are most common.

Types of Surety Bonds

  • Bid bond: provides financial assurance that
    the bid has been submitted in good faith
    and that the contractor intends to enter
    into the contract at the price bid.
  • Performance bond: protects the owner
    from financial loss should the contractor
    fail to fulfill the contract requirements in
    accordance with the term and conditions of
    the contract documents.
  • Payment bond: guarantees that the
    contractor will pay certain labor and
    material bills associated with the project.

Procurement Opportunities

Tips on Obtaining Bonding                                 How Long Does it Take to Pre-Qualify for
Basic steps needed in obtaining a bond include:
                                                          This depends solely on you and how well
     • Identify a bonding agent.
                                                          prepared you are.     For owners who have
     • Visit at least three bonding agents. Find
                                                          met all the requirements and can produce
       out what they offer and explain your firm’s
                                                          the information to the surety company in
       marketing goal.
                                                          an acceptable manner, the process can be
     • Develop a relationship with a bonding agent
                                                          accomplished in five to ten working days.
       as soon as possible. Ask persons in your
                                                          But, do not underestimate the time it takes to
       industry which agent obtains bonds for
                                                          prepare your paperwork.
     • Select the bonding agent who offers the
                                                          First Impressions
       best services for the price and will advise
       you in the area of bonding as your firm            First impressions with the bonding agent are
       grows.                                             crucial. Business owners will only get one chance
     • Select an independent       Certified Public       to make that first impression. Remember, the
       Accountant (CPA).                                  dress code for business negotiations and for
     • Bonding agents will require financial              business activities may be different.
       statements of your company prepared by
       an independent accountant.                         Increasing Bonding Capacity

                                                          To increase bonding capacity reduce large cash
Fiscal-year-end   and     six-month   financial
                                                          outlays and establish a working capital base and
statements will be submitted regularly to your
                                                          net worth consistent with the volume of work
bonding agent. This will save the agent time.
                                                          the business wants to accomplish. Complete
                                                          all work on time and pay your subcontractors
How Do I Quality for Surety Bonds?
                                                          and suppliers on time.
Select an agent (preferably one who specializes
in your particular industry) and discuss your             SBA’s Surety Bond Guaranty Program
plans with him/her. Provide the agent with the
                                                          Small   contractors,    who    require   surety
following information:
                                                          bonds to perform on construction or service
     • Business plan and organization chart               contracts, can apply to the U.S. Small Business
     • Resumés of key principals with a description       Administration (SBA) for bonding under the
       of the largest completed jobs, including           Surety Bond Guaranty program.
       names and telephone numbers of owners,
       financial statements, tax returns and bank         In order to be eligible for a bond guaranty by the
       relationships.                                     SBA, a small contractor must qualify as a small
                                                          business in accordance with SBA size standards
                                                          and the principals must be of good character.
                                                          If the firm’s annual average sales over the
                                                          past three fiscal years have not exceeded $6
                                                          million. The SBA can guarantee surety bonds
                                                          on contracts up to $2,000,000.The fee charged
                                                          by the SBA for the guaranty is $6 per $1,000 of
                                                          the contract amount.

                             For more information visit
Procurement Opportunities

For information on the Surety Bond Guaranty      U.S. Small Business
program, contact:                                Administration’s (SBA)
SBA District Office                              Government Contracting Program
215-580-2703                                     The Government Contracting Program of SBA
                                                 ensures that small businesses receive their
Bonding Companies                                fair share of federal contracts. SBA’s programs
Zurich North America                             include the establishment of small business
1 Upper Pond Road, Bldg. E-F                     set-asides, certification of small businesses to
Parsippany, NJ 07054                             perform on federal contracts, and opportunities
973-394-5100                                     in subcontracting to large business prime                                 contractors.

Heritage Insurance Agency Inc.                   SBA also provides information and assistance
1317 South Main Road                             to firms who are interested in obtaining
Vineland, NJ 08360                               federal contracts. SBA staff can be contacted
856-696-3152                                     for additional information at the following                      locations:

                                                 Lakehurst, NJ - 732-284-8064
G.R. Murray Insurance                            Picatinny Arsenal, Dover, NJ - 973-724-6574
Division of O’Gorman & Young, Inc.     
707 State Road
Rte. 206 North
P.O. Box 83
Princeton, NJ 08542

Global Indemnity Insurance Agency, Inc.
20 Highland Avenue
Metuchen, NJ 08840

International Fidelity Insurance Co.
One Newark Center
20th Floor
Newark, NJ 07102
800-333-4167 Ext. 290

Disclaimer: The above is not a list of surety
companies specifically endorsed by New Jersey.

Procurement Opportunities

Minority Small Business & Capital Ownership            State of New Jersey AGENCY PURCHASE ORDER
Development (MSB/COD) 8(a) Program                     (PB2PO-r8/93)

The 8(a) Program is SBA’s effort to promote
                                                       State of New Jersey PAYMENT VOUCHER
equal access for socially and economically
disadvantaged individuals to participate in the
business sector of the nation’s economy.
                                                       Check the agency purchase order carefully.
                                                       Verify that the prices are the same that you
Socially and economically disadvantaged
                                                       bid or quoted. Read the document carefully
individuals include Black Americans, Hispanic
                                                       and understand the terms and conditions of the
Americans, Native Americans, Asian Pacific
                                                       order or job.
Americans and others designated by the SBA

                                                       Clarify any discrepancies before you perform
The program recognizes the historical lack
                                                       the service or supply the goods. Failure to
of equal access that minorities and other
                                                       obtain prior authorization to change the order
disadvantaged individuals have had to the
                                                       in any way will delay payment. Perform the
resources needed to develop their small
                                                       service or supply the goods authorized.
businesses. The program assists 8(a) approved
firms to participate in the business sector and
                                                       Upon the state’s acceptance of the service
to become independently competitive in the
                                                       or goods, complete and mail the payment
                                                       voucher to the address listed in item (E) “Send
                                                       Completed Form To:”
The assistance available includes access
to federal government contracts as well
                                                       Read the payee instructions on the reverse side
as management and technical assistance
                                                       of the Payment Voucher.
programs. For further information call SBA
                                                       If not already filled in by the agency placing the
                                                       order, complete items (A) through (D).
How to Be Paid Promptly by the
State of New Jersey                                    Sign the “Payee Declaration” (F). Be sure to
Vendors doing business with the State of New           write your title and the current date.
Jersey can receive payment for goods and
services purchased by the state government             In “Payee Reference Number” (G) include the
within as few as 30 days by following some             businesses’ invoice number, billing number or
simple instructions.                                   any other identification for reference purposes.
First, before providing goods and services you         This will be recorded on the check stub and
must have received a purchase order with an            assist you in payment identification. Do not use
authorized signature under agency approval.            more than 30 characters.

Now the Payment Process Has Officially Begun

In either of the above instances, the business
will receive the following set of forms, which
should be considered the work order and
authorization. The terms “Payee” and “Vendor”
are used interchangeably.
                          For more information visit
Procurement Opportunities


                            Keep a record of the payment voucher.
                            Address changes should be made in writing to:

                            Department of the Treasury
                            Office of Management and Budget — Vendor
                            PO Box 221
                            Trenton, NJ 08625-0221

                            All other changes (business address, phone
                            number, identification number, etc.) should be
                            made in writing to:

                            Department of the Treasury
                            Purchase Bureau — Vendor Change
                            PO Box 230
                            Trenton, NJ 08625-0230


                            It is your responsibility to get written
                            agreements or contracts from prime contractors
                            performing state contracts. Finalize working
                            hours, pay, overtime, holidays and expected
                            project completion dates. Determine whether
                            the prime contractor is bonded. If necessary,
                            contact the bonding company that issued the
                            performance bond. It is your responsibility to
                            keep proper records of the hours and days you

Procurement Opportunities

Additional Procurement Resources                         Bidding of Construction Contracts

Bidder’s Mailing List Application                        If the business is a construction contractor,
                                                         architectural or engineering firm and wishes to
If a business has a product or service utilized by
                                                         bid on construction contracts, call or write:
the state and you are interested in receiving a
Request for Proposal, call or write for a Bidder’s       New Jersey Department of Treasury
Mailing List Application at:                             Division   of  Property    Management          and
New Jersey Department of Treasury
                                                         33 West State Street, 9th Floor
Division of Purchase and Property
                                                         PO Box 034
Purchase Bureau - Bid List Management
                                                         Trenton, NJ 08625-0034
PO Box 230
                                                         Call 609-943-3400
Trenton, NJ 08625-0230
Submit your application online at:
                                                         For assistance with Bonding Requirements,
                                                         contact the New Jersey Business Action Center
                                                         at 866-534-7789

Casino Industry
                                                         Pre-qualification Application
If a business is interested in transacting
                                                         Construction Firms-
business with Atlantic City Hotels/Casino or
                                                         To request form Form GSA27
you require information regarding vendor
                                                         (Request for Classification for Contractors)
registration, licensing or general procedures for
                                                         Call 609-943-3400
the casino industry, contact:

State of New Jersey Casino Control Commission            Architectural and Engineering Firms-
License Division Enterprise License Bureau               To request Form 48A
Tennessee Avenue and Boardwalk                           (Consultant Services Questionnaire)
Atlantic City, NJ 08401                                  Call 609-943-3400
                                                         Highway and/or Bridge Construction Contractor-
                                                         To request Form DC-74A
                                                         (Pre-qualification Application)
                                                         New Jersey Department of Transportation
                                                         1035 Parkway Avenue
                                                         P.O. Box 605
                                                         Trenton, NJ 08625-0605

                            For more information visit
Procurement Opportunities

The Port Authority of NY/NJ                       New Jersey Turnpike Authority
New Jersey Transit Corporation
                                                  The New Jersey Turnpike Authority operates the
If a business is seeking opportunities with the   New Jersey Turnpike, the Garden State Parkway
Port Authority of NY/NJ and needs information     and the PNC Arts Center. The authority is
or pre-qualification policies and procedures,     responsible for the maintenance and operation
call or write:                                    of the toll roads.

The Port Authority of NY/NJ
                                                  If a business is seeking opportunities with the
1 Madison Ave 7th floor
                                                  NJ Turnpike Authority and needs information or
New York, NY 10010
                                                  pre-qualification policies and procedures, call
                                                  or write:
                                                  New Jersey Turnpike Authority
If a business is seeking opportunities with the   PO Box 5042
NJ Transit Corporation and needs information      Woodbridge, NJ 07095
or pre-qualification policies and procedures,     Attn: Bid Supervisor
call or write:                                    732-750-5300 x8253
NJ Transit Corporation
One Penn Plaza
                                                  South Jersey Transportation Authority
Newark, NJ 07105
973-491-7546                                      The Authority operates the Atlantic City                                 Expressway and Atlantic City International

                                                  If a business is seeking opportunities with the
                                                  South Jersey Transportation Authority and
                                                  needs information or pre-qualification policies
                                                  and procedures, call or write:

                                                  South Jersey Transportation Authority
                                                  P.O. Box 351
                                                  Hammonton, NJ 08037

Section 6: Exporting

Exporting                                              Export Promotion

International Trade and Investment Services            Export Promotional Activities

The State offers various programs to New               The ever-growing dynamic world of international
Jersey firms planning to grow their overseas           trade has never been more important to New
business   opportunities   and    international        Jersey’s business community. The State of New
companies seeking to establish a presence in           Jersey provides tools to support businesses that
New Jersey. The Office of International Trade          are planning to expand overseas by helping
enhances companies’ competitiveness in the             them identify new strategic international
global market through the following:                   markets for their products and services.

Export Promotion
                                                       Key Contacts
  • Export Promotional Activities
  • Key Contacts                                       The State of New Jersey Business Action Center
  • Customized Trade Consulting Services               - Global Business Unit - (866) 534-7789

International Trade Promotion Events
                                                       U.S. Export Assistance Center of Trenton, New
  • Trade Missions and Trade Partnering
  • Business Networking with Inbound Foreign
                                                       Serving Monmouth, Mercer Counties and
    Buying Missions
                                                       Middlesex County South of Route 287:
  • International Business Partnering
                                                       Trenton U.S. Export Assistance Center
                                                       Michael Manning, Director
Foreign Direct Investment                              US Commercial Service, 100 Technology Way,
  • New Jersey - An Attractive Business                Room # 208
    Destination Services                               Mt. Laurel, New Jersey 08054
Educational Seminars                                   Telephone: 856-722-0958, Fax: 856-722-0716
Trade Advocacy                               
Import Assistance
  • Sources of Import Assistance                       Serving areas in North Jersey except for
                                                       Monmouth, Mercer Counties and Middlesex
                                                       County South of Route 287:
                                                       Joel Reynoso, Director, CGBP, PMP
                                                       U.S. & Foreign Commercial Service
                                                       744 Broad Street, Suite 1505
                                                       Newark, NJ, 07102
                                                       973-645-4682 x 212

                          For more information visit

Customized Trade Consulting Services                 Trade Missions and Trade Partnering Activities

Our services are targeted to meet the needs          The State of New Jersey organizes and
of firms expanding their market reach or             promotes its own, as well as international
exporting for the first time.        Assistance      business development missions, trade shows
includes free comprehensive export consulting        and partnering opportunities, organized by
services, international market research, help        local, federal and foreign entities.
in identifying trade and export finance, foreign
                                                       • Trade Missions: State sponsored trade
market advocacy and assistance with federal
                                                         missions abroad enable exporters to
export programs.
                                                         partner with potential foreign customers.
                                                         The State organizes trade missions to
The State works with you, to understand your
                                                         initiate and nurture relationships with
company’s goals and objectives. After a one-
                                                         potential international business partners.
on-one corporate consultation, we will provide
                                                         Participating trade missions provide New
you with customized research regarding your
                                                         Jersey companies with an opportunity to
international target markets and work with you
                                                         meet high-level business and government
to assess the viability of products or services in
                                                         executives face-to-face, greatly enhancing
each overseas market.
                                                         the     potential  for   future   business
International Trade Promotion Events
                                                       • Trade shows: The State organizes,
Throughout the year, the State organizes and
                                                         participates in and sponsors market and
sponsors international trade missions, trade
                                                         industry specific exhibitions of state-
shows and catalog shows in key overseas
                                                         produced goods and services in overseas
markets,    where    international  business
                                                         markets. The State works with companies
opportunities for New Jersey companies are
                                                         to identify appropriate trade shows and
                                                         opportunities to market New Jersey
                                                         products or services and also arranges pre-
These events allow New Jersey companies to
                                                         qualified meetings with interested buyers
explore new markets, identify new business
                                                         and distributors.
opportunities, and secure distributors, agents
and partners in strategic foreign markets.            • Catalog Shows: A catalog show is a low-
                                                        cost way for New Jersey companies to gain
The State also organizes and sponsors                   exposure and develop leads in a new market.
international trade seminars and conferences.           The State represents New Jersey businesses
Many of the State’s international trade                 to interested buyers or representatives,
development events are conducted in close               distributes company literature and provide
partnership with the United States Department           those leads to N.J. businesses.
of Commerce and foreign governments
worldwide. New Jersey has also served as host        Business Networking with Inbound Foreign
to international trade and business delegations      Buying Missions
from every corner of the world.                      The State works with foreign governments
                                                     to host incoming buying missions from the
                                                     international business community and assists
                                                     New Jersey companies in the identification of
                                                     suitable trading partners.


International Business Partnering                        Services

Targeted to meet the needs of exporters ready            The State provides free customized investment
to sell their goods and services abroad, the             consulting services to help international
State identifies partners for joint ventures,            investors   access state and local financing
strategic alliances, distribution, representation        incentive programs and site selection services.
and other collaborations, at no charge.                  Our highly qualified team of international
                                                         representatives guides international firms
Working with international and federal                   through site selection to sale of product. More
contacts, the State coordinates customized               importantly, once a company establishes
“partner searches” for prospective agents and            a presence in the State, our agencies and
distributors who can effectively sell your firm’s        departments assist with their business
products and services overseas. The State’s              development needs.
Global Business Specialists work with New
Jersey companies from the consulting and                 Educational Seminars
research stage to the successful closure of the          Through group seminars and individual sessions,
export sale.                                             the State helps exporters analyze their export
                                                         potential and orient themselves to export                                               techniques and strategies. The training helps brings together US Government                 existing New Jersey exporters improve export
resources to assist U.S. businesses in planning          skills, and helps new-to-export companies
their international sales strategies and succeed         enter the global market. Export education may
in today’s global marketplace. More information          include formal academic instruction, lectures
is available at:                 from international industry participants, service
                                                         training, and one-on-one consulting on the
Foreign Direct Investment                                development of an international business plan.
                                                         New exporters may also refer to “A Basic Guide
New Jersey - An Attractive Business Destination
                                                         to Exporting” published by the U.S. Department
New Jersey has historically been an attractive
                                                         of Commerce and is available at
destination in the United States for foreign
direct investment (FDI) because of its strategic
location, educated and productive workforce,
                                                         Trade Advocacy
and outstanding infrastructure. Further, the
                                                         The State assists New Jersey companies with
State is located in the center of a two trillion
                                                         specific trade or export related issues in an
dollar economy with access to 100 million
                                                         effort to overcome trade barriers, bureaucratic
consumers within a twenty-four hour drive.
                                                         problems, or unfair trading practices. Advocacy
                                                         service includes:
New Jersey’s Global Business Team attracts new
foreign direct investment through relationships            • Support of New Jersey companies’
the State forges with the foreign diplomatic,                products and services in international
governmental and business communities. The                   procurement competitions
attraction of new foreign direct investment                • Assistance for New Jersey companies to
and the promotion of international business                  receive payments for exported products
partnerships to foster job retention and creation          • High-level, government-to-government
are key elements to New Jersey’s economic                    advocacy on behalf of New Jersey firms
development.                                                 competing for international projects
                            For more information visit

Further information can be obtained by             Sources of Import Assistance
contacting the New Jersey Business Action
                                                   Foreign Embassies and Consulates in the United
Center at (866) 534-7789 or U.S. Department
of Commerce Advocacy Center at:
                                                   Promotion of their country’s goods and services.
U.S. Department of Commerce              
4th Street & Constitution                          html
Avenue, NW, Rm. 384-A
Washington, DC 20230                               Customs Importation Guidelines for Commercial
(202) 482-3896 / voice                             Importers
(202) 482-3508 / fax                               Importing into the United States.
Import Assistance
                                                   Freight Forwarders
The State of New Jersey provides companies
                                                   Local business telephone listings often feature
located in New Jersey and interested in
                                                   a freight forwarder or transportation heading.
importing goods from overseas markets with a
                                                   The National Customs Brokers and Forwarders
network of domestic and international contacts.
                                                   Association of America provides exporters with
                                                   information on their members.
U.S. Customs and Border Protection, within the
U.S. Department of Homeland Security, is the
lead agency for addressing all questions and
                                                   For more detailed information about New
issues associated with importing products into
                                                   Jersey’s global business services call
the United States. More information may be
                                                   (866) 534-7789 or go to
found at

Further information regarding import tariffs
may be found through the U.S. International
Trade Commission at,
click on “Tariff Schedule.”

Local Customs offices can also be contacted for
import information. The country of origin of the
goods ultimately determines which rate should
be used for the importation. A comprehensive
listing of U.S. Customs offices and contacts
is available on the U.S. Customs and Border
Protection Web site


Sources of Export Assistance                              • SBAtlas is a program where international
                                                            market information is available for specific
     • The New Jersey Division of Markets
                                                            products that a small business is planning
       promotes New Jersey agricultural products
                                                            to export. Small firms can receive general
       overseas and provides export development
                                                            information on whether there is a market
       assistance to producers of fresh and
                                                            for their products overseas, what the
       processed agricultural products.
                                                            trends have been in these markets and
     • The New Jersey District Export Council,              what competition they will encounter in
       an affiliate of the U.S. Department of               specific country markets.
       Commerce, is an association of successful
                                                           • The export Legal Assistance Network is
       businesspersons who provide guidance
                                                             comprised of volunteer attorneys who
       and assistance to companies seeking to
                                                             provide New Jersey companies with a free
       sell or expand into foreign markets.
                                                             one-hour consultation on subjects such
     • The International Trade Administration                as basic contractual agreements, letters
       provides a comprehensive resource for                 of credit, joint venturing and licensing
       information on all U.S. federal government            agreements, as well as an overview of
       export assistance programs.                           legal requirements involved in entering
     • Business Development Assistance provides              particular markets.
       volunteer consultants with international
       trade experience from Service Corps
       of Retired Executives (SCORE) to help
       small businesses entrepreneurs make a
       preliminary assessment of their export
       marketing plans. In addition, export-
       training programs are co-sponsored by
       the SBA with various colleges and other
       organizations interested in international
       trade promotion.

                            For more information visit

Export Financing                                    • The SBA offers financial assistance and
                                                      business development services to exporters.
Numerous      export-financing    sources    are
                                                      To be eligible for these programs, firms must
available. Business seeking financing assistance
                                                      meet SBA size standards for the industry in
should first check with local or regional banks.
                                                      which they are principally engaged.
In many cases these banks have international
                                                    • Through the Export Revolving Line of
financing services.
                                                      Credit program, the SBA can guarantee up
                                                      to 85% of a bank line of credit to a small
In addition to local and regional lenders,
                                                      business exporter, not to exceed $750,000
exporters can obtain information from the
                                                      for SBA’s share. In addition, the SBA and
following funding sources:
                                                      the Export-Import Bank of the U.S. (Ex-Im
  • New     Jersey    Economic     Development        Bank) can co-guarantee up to 85 % of the
    Authority (EDA) works with New Jersey             loan amount of loans in amounts raging
    banks to provide revolving lines of credit        from $200,000 to $1 million extended by
    to finance confirmed foreign orders. The          private lenders.
    EDA also has other bond financing and loan
    programs.                                      Export-Import Bank of the U.S. (Ex-Im Bank)
  • Export-Import Bank of the U.S. helps           has a number of programs including:
    exporters make sales when other sources
                                                    • Export Credit Insurance that protects
    of assistance are unavailable or inadequate.
                                                      exporters and lenders against both
    There are four available programs:
                                                      commercial and political risks of a foreign
    Working Capital Guarantees; Export Credit
                                                      buyer defaulting on payment.
    Insurance; Loan Guarantees to Lenders;
                                                    • A variety of policies that establish short-
    and Direct Loans. Exported goods must
                                                      term and medium-term sales, either on
    contain 50 percent of U.S. made material.
                                                      a single-buyer or multi-buyer basis and
  • Working Capital Guarantees are offered
                                                      special programs that address the needs
    to lenders so they can provide exporters
                                                      of small businesses and environmental
    with working capital needed to buy, build
    or assemble U.S. products for export sales.
                                                    • Loan Guarantees to Lenders that encourage
    The guarantees cover 90 percent of interest
                                                      sales of U.S. – made capital equipment to
    and principle.
                                                      creditworthy foreign buyers by having Ex-
  • U. S. Small Business Administration (SBA)
                                                      Im Bank assume all of the political and
    offers loan guarantees through its Export
                                                      commercial risks of non-payment.
    Working Capital Program to help small
    businesses export by providing financing
                                                   For    more    information about        Export
    for loans up to $1 million.
                                                   Financing, call 866-534-7789 or         go to
  • SBA Export Express is a loan program
    to help small businesses with exporting
    potential that need funds to buy or produce
    goods and/or services for export. Loans
    may be used for most business purposes
    including expansion, equipment purchases,
    working capital, inventory to real estate
    acquisition, and trade shows. Loans range
    up to $300,000.


Other Sources of Financial                             Division of Markets
Assistance                                             New Jersey’s Division of Markets promotes
New Jersey Banks With International                    New Jersey agricultural products overseas
Departments                                            and provides development assistance to small
                                                       and medium-sized producers of fresh and
Many banks have international departments
                                                       processed agricultural products. Throughout
that provide specialized services which are
                                                       the year, the division helps New Jersey growers,
required for international trade transactions.
                                                       food processors and wholesalers participate
                                                       in international and domestic trade shows,
These services may include assistance in
                                                       enabling these companies to sell their $200
remittance and collection, currency exchange,
                                                       million worth of products in more than 100
commercial letters of credit, financing exports,
                                                       foreign countries.
establishing payment terms, collecting export
receivables and providing necessary financial
                                                       Through its membership in Food Export USA –
                                                       Northeast along with its coordination with the
                                                       U.S. Department of Agriculture and the Foreign
Banks can also serve as a channel for trade
                                                       Agricultural Service, the Division of Markets
leads and a source of credit information on
                                                       also provides the following services:
potential customers through their contacts with
their correspondent banks or through inquiries
                                                       Trade Show Assistance
submitted by foreign entities.
                                                       Small and medium-sized firms may participate
Services:                                              at Food Export USA-Northeast domestic trade
                                                       shows in a shared booth for a nominal fee.
                                                       Foreign buyers are invited to attend these
Credit Information on Potential         Foreign
                                                       shows to purchase U.S. agricultural products.
Funds Transfer
                                                       Product Promotion Assistance
International Money Orders
Foreign Exchange                                       New Jersey helps companies obtain federal
Foreign Currency Loans                                 funds for market development activities
                                                       through the USDA’s Market Access Program
Trade Financing:                                       (MAP), which helps American firms establish
                                                       new foreign markets or increase their current
Acceptance Financing
                                                       foreign market share.
FCIA/Ex-Im Bank Financing
Import Lines of Credit/Loans
                                                       MAP enables New Jersey companies to receive
Import/Export Letters of Credit
                                                       reimbursement for up to 5 percent of eligible
Pre-Export Financing
                                                       promotional expenditures. In addition, the
Export Insurance
                                                       department coordinates the participation of
                                                       New Jersey food and agricultural companies at
                                                       international food expositions.

                          For more information visit

Trade Leads And Program Information              The U.S. Agency for International Development,
                                                 Global Technology Network (GTN) consists of a
AgExport kits are available through the New
                                                 network of domestic and international partners
Jersey Department of Agriculture. The AgExport
                                                 that assist U.S. small and medium-sized
kits are useful for new export companies as
                                                 firms seeking access to emerging overseas
well as more experienced exporters. The kits
                                                 markets. GTN operates as an Internet-based
include the AgExport magazine, a guide to
                                                 communications and trade lead system, with a
available USDA export development services
                                                 primary focus on agribusiness, communications
and order forms for foreign buyer lists, U.S.
                                                 and information technology, environment and
supplier lists and the buyer alert program.
                                                 energy, and health technology.
Export trade leads are collected and matched
to potential exporters.

Educational Programs
                                                 New Jersey’s District Export Council is an
Workshops,    information   and   technical      affiliate of the U.S. Department of Commerce
assistance are available for new-to-export       and is an association of successful business
firms.                                           leaders who provide guidance and assistance to
                                                 companies seeking to sell or expand in foreign
Contact:                                         markets.
Division of Markets                              973-645-4682
John Fitch Plaza                       
P.O. Box 330
Trenton, NJ 08625

U.S. Commercial Services also has offices at:
Export Assistance Center
744 Broad Street
Newark, NJ 08102

The International Trade Administration serves
as a comprehensive resource for information on
all U.S. federal government export assistance
programs. Country-specific export counseling
and customs procedures are among the
available services.
1-800- 872-8723

Section 7: Resources

Business Advocacy & Economic                           Site Selection Services
Development Services                                   New Jersey’s BAC offers a full range of site
New Jersey is dedicated to helping businesses          selection solutions. These include development
prosper and grow. One key aspect of this               services such as assembling land and
commitment is the New Jersey Business Action           structuring financing. Additionally, we can
Center (BAC), a team reporting directly to Lt.         provide considerable assistance in facilitating
Gov. Guadagno that brings a customer service           the permitting process.
approach to coordination and navigation across
State and local government agencies for                Regulatory Assistance
businesses looking to remain, expand or locate         By providing technical and compliance
in New Jersey.                                         assistance for all expansion and relocation
                                                       projects, New Jersey’s BAC helps business to
Project Coordination                                   cut through red tape. By actively working with
New Jersey’s BAC spearheads coordination               various state agencies and departments such
efforts   for   projects   involving    multiple       as the Department of Environmental Protection,
departments and agencies. The BAC has                  New Jersey Department of Transportation and
excellent working relationships with state,            the Department of Community Affairs the Team
county and local government entities throughout        can study all the issues involved.
New Jersey. You can rely on the BAC to save
you valuable time and to put you in touch with         Business Action Center
the right people and the right agencies.               If you can’t find what you are looking for on
                                                       the Web, you can get the answers you need
Financial and Incentive Program Advocacy               by making one call to 1-866-534-7789.
The BAC will walk you through all the business         Professionally trained staff is available to
financing programs available to your business.         provide you with direct assistance, guidance
Specifically, we can identify the programs your        and information about state services available
business is eligible for, and help locate the          to the business community.
funding sources that best meet your unique
needs. In addition, the BAC is invaluable when
it comes time to begin the application process,
providing helpful assistance in completing and
filing the necessary paperwork. You can count
on the BAC to answer any questions and provide
guidance every step of the way.

                          For more information visit

Entrepreneurial Training and Business               This unique partnership pools public/private
Mentoring                                           funding and utilizes volunteers to build a support
                                                    system for small contractors so that they may
The Entrepreneurial Training Initiative (ETI) is
                                                    be competitive in today’s construction market.
designed to guide new and aspiring business
owners toward successful entrepreneurship.
                                                    RASC is led by major corporations in
                                                    construction, small businesses and public
This program consists of an entrepreneurial
                                                    agencies to help Small, Minority-owned,
self-assessment tool, a two-part six-session
                                                    Women-owned and Disadvantaged Business
workshop culminating in a completed business
                                                    Enterprises (S/M/W/DBE) compete openly and
plan, and several opportunities to meet with
                                                    perform effectively on public and private sector
various business professionals for feedback on
their plan. Participants will also gain access to
small business lenders and receive eighteen
                                                    The Regional Alliance for Small Contracts (RASC)
months of support from one of our business
                                                    works to enable S/M/W/DBE contractors to
mentors to help navigate the issues many small
                                                    realize growth in the construction and related
businesses encounter.
                                                    industries. The Alliance provides an array of
                                                    management, financial and market services,
ETI is sponsored by the EDA and provided
                                                    which are key factors in determining the
through a partnership the UCEDC.
                                                    profitability and growth of small contractors.

Visit or more information or
                                                    The RASC has these primary goals:
call 866-534-7789
                                                      • Increase the number and size of contracts
                                                        awarded to small businesses in construction
                                                        and expand the range of their business
                                                      • Expand the capacity of S/M/W/DBE
                                                        businesses to undertake contracts of
                                                        increasing size and complexity and to
                                                        support their overall development.
                                                      • Strengthen the regional construction
                                                        industry by promoting policies and practices
                                                        that improve the competitive position of
                                                        minority- and women-owned enterprises
Regional Alliance for Small                             and small businesses.
Contractors, Inc.                                     • Promote the advancement of minorities
                                                        and women as owners, managers and
An Innovative Industry Partnership
                                                        employees in the construction industry.
A group of prestigious New York/New Jersey
construction firms and public agencies joined
together in 1989 to form the Regional Alliance
for Small Contractors (RASC), a not-for-profit


Volunteers from major construction firms are           Some of the courses offered include:
available to coach contractors interested in
                                                         • Contract Administration
working on transportation and building projects.
                                                         • Estimating
The facility contains a bid room, library,
                                                         • Project Management
project specifications, educational materials
                                                         • Project Planning and Scheduling
and a workstation The center is open Monday
                                                         • Financial Strategies for the Growing
through Friday, 9 A.M. to 5 P.M.; evening and
Saturday hours of operations are available by
                                                         • Internet and the Construction Industry
                                                         • Construction Contract Law and Safety

The Regional Alliance For Small Contractors,
                                                       Contract Compliance Services
The Port Authority Bus Terminal                        RASC provides all services necessary to ensure
625 8th Avenue, North Wing, Second Floor               that construction managers and owners comply
New York, NY 10018                                     with their project’s federal, private or public
Phone: 212-268-2991                                    sector EEO/AA/DBE obligations to administer
Fax: 212-268-7509                                      and oversee program requirements.
                                                       RASC has developed comprehensive contract
Program Contents                                       compliance programs and a data tracking
                                                       system, monitoring programs and procedures
RASC operates a multifaceted program, which
                                                       to facilitate projects in excess of $1 billion.
enables S/M/W/DBE contractors to realize
success and growth in construction and related
                                                       Financing Small Contractors
industries. Programs consist of an array of
financial, management, marketing and contract          The Bonding and Loan Assistance Program,
compliance services.                                   helps small contractors prepare applications for
                                                       loans and bonds. Through participating banks,
Managing Growth                                        sureties and public lenders, contractors can
                                                       receive working capital at market rates.
Experienced S/M/W/DBE contractors learn
how to effectively manage and grow their
                                                       Contractors’ Opportunities Clearinghouse
businesses through an innovative and intensive
professional training program called Managing          This program offers the opportunity to meet
Growth.                                                and speak one-on-one with representatives
                                                       from large public development agencies and
This series of more than 30 business and               major construction firms.
construction management training classes is
designed and taught by senior construction             S/M/W/DBE contractors learn about upcoming
executives and technical experts from RASC             construction projects for the year and how to
member firms focusing on practical applications        do business with the participating sponsors.
to problems frequently encountered on the job
site and in the office. Courses range from 10-
18 hours in duration.

                          For more information visit

Loaned Executive Assistance Program (LEAP)           Part of a national network of more than 100
                                                     centers, the NJIT Procurement Center reflects
This program is a consultant service comprised of
                                                     the university’s commitment to public service
top construction professionals who provide small
                                                     by offering a competitive edge to businesses
contractors with expert advice on construction
                                                     by making available realistic outreach services
and business management. Contractors who
                                                     free of charge.
experience specific management or operational
problems may call upon the services of the
                                                     NJIT Procurement Center reaches out to the
RASC LEAP specialist.
                                                     business community, educating and training
                                                     firms so they are qualified to compete for
Advice and assistance in areas such
                                                     government and large business procurement
as     construction      management,      contract
                                                     opportunities. The center assists in generating
administration, cost control, scheduling,
                                                     employment, improving the business climate
staffing, role clarification and growth strategies
                                                     and fostering economic stability.
can be provided. RASC LEAP consultants
cannot work in a staff engineering capacity.
                                                     Workshops are held throughout the state on
The program also gives pre-construction and
                                                     a weekly basis and give participants a basic
on-site assistance to successful bidders and
                                                     understanding of the procurement process.
helps contractors qualify for work.
                                                     One-on-one counseling provides expert advice
                                                     on all phases of contracting. The Center’s
Outreach Referral Service
                                                     main office is located on the campus of NJIT in
Each year, numerous calls are received from          Newark, with satellite offices in Trenton, Mount
project owners, construction managers and            Holly and Atlantic City.
developers seeking minority and women
contractors. From our database of information,
RASC makes referrals in response to these
requests, providing business opportunities for
hundreds of contractors.

The Procurement Technical
Assistance Center at New Jersey
Institute of Technology (NJIT)
The New Jersey Institute of Technology Defense
Procurement Technical Assistance Center
operates under a cost-sharing cooperative
agreement between the Department of Defense
and the university.

The center provides marketing, contractual and
technical assistance to women- and minority-
owned enterprises and small businesses in New
Jersey that are interested in expanding their
customer base to state and federal governmental
agencies as well as large corporations.


The Procurement Technical Assistance Center                For more information contact:
offers businesses an integrated marketing
solution that includes, but is not limited to, the
     • Access to marketing information on
       competitors’ pricing history of the products        The New Jersey Small Business
       that you sell.                                      Development Centers (NJSBDC)
     • Bid matching a product or service to federal
                                                           The New Jersey Small Business Development
       or state government buyers’ requirements
                                                           Centers (NJSBDC) network provides free
       and e-mailing the results daily. This
                                                           management         consulting     services    and
       information provides you with both prime
                                                           affordable training to help established small
       and subcontracting opportunities.
                                                           business owners manage their businesses more
     • Review of a proposal bid package, including
                                                           effectively, gain access to financing, create new
       a detailed explanation of the significance
                                                           jobs and generate new revenue in New Jersey.
       inherent in government unique terms and
                                                           NJSBDC is part of a national partnership
       conditions as governed by the Federal
                                                           between the federal and state governments,
       Acquisition Regulations and New Jersey
                                                           colleges and universities and the private sector.
     • Assistance in placing a company’s vital
                                                           Eleven full-service offices provide assistance
       marketing information where buyers go to
                                                           with a range of business topics including
       find vendors such as SAVI-II, PRO-Net and
                                                           business planning, marketing and accessing
       the Central Contractor Registration Web
     • Information as to the various methods of
                                                           Small business owners are assisted in exploring
       responding to the customer’s purchasing
                                                           the feasibility of their business ideas, assessing
       requirements by introducing business to
                                                           their business plans, making cash flow
       the various forms of Electronic Commerce-
                                                           projections and developing accurate financial
                                                           statements, formulating marketing strategies
     • Leverage a firm’s unique characteristics
                                                           and preparing loan applications. NJSBDC
       by positioning your firm to fully utilize the
                                                           also assists prime and sub-contractors to do
       various marketing tools available to be
                                                           business with the State and obtain certification
       more competitive, such as: certification
                                                           to do business with corporations and the
       as a Woman Business Enterprise (WBE),
                                                           Federal government.
       a Minority Business Enterprise (MBE), a
       Disadvantaged Business Enterprise (DBE),
                                                           Statewide specialty programs work with
       an 8(a) firm, a Small Disadvantaged
                                                           growing companies to provide assistance for
       Business (SDB), a HUBZone and a Service
                                                           implementation of information technology,
       Disabled Veteran company.
                                                           identifying and soliciting government contracts,
     • Information     on     government-financed
                                                           commercializing new technologies and exploring
       research programs under the Small
                                                           opportunities in international trade.
       Business Innovation Research program
     • Assist with disputes resolution, bid protests
       and Certificate of Competence to avoid loss
       of sales volume.
                              For more information visit

Small Business Registration and Government            E-Business Services
                                                      The NJSBDC E-Business program works with
The NJSBDC Small Business and Government              established small businesses to integrate
Procurement      program      helps    established    information technology into their business
businesses acquire the appropriate registrations      plans. Services include evaluation of existing
and certifications to bid on Federal, State and       Web sites, recommendations for new Web
local contracts. Special assistance is available to   design strategies and assistance in identifying
help companies certify their business as Small        technology resources and working with vendors.
Business Enterprises (SBE), Women Business
Enterprises (WBE), and Minority Business              In addition, this program coordinates market
Enterprises (MBE) in conjunction with New             research services on behalf of NJSBDC clients.
Jersey’s set-aside program for bidding on State
contracts. Small businesses receive assistance        International Trade
with identifying and soliciting government,
                                                      The NJSBDC International Trade program
corporate and federal contracts and are
                                                      helps small businesses expand their domestic
provided with manufacturing opportunities.
                                                      operations by exploring opportunities to market
The Procurement program also provides
                                                      internationally and leverage existing export
coaching and training on doing business with
                                                      resources offered by the State and Federal
the various entities.

Pre-Qualification Assistance Programs
                                                      Technology Commercialization
(Emerging Markets)
                                                      Since NJSBDC began providing services in
The Emerging Markets/Special Projects (EM/SP
                                                      1977, over 290, 000 people have received
Program) was created to expand opportunities
                                                      free, confidential, one-to-one consulting and
for growth segments of the population,
                                                      affordable education.
including African-Americans, Latinos and Asian-
                                                      NJSBDC is funded by the U.S. Small Business
                                                      Administration;    New    Jersey    Commerce
The EM/SP Program works with entrepreneurs
                                                      Commission;      Rutgers   Business   School:
and business owners to become involved in
                                                      Graduate Programs: Newark and New
economic development initiatives, identify
                                                      Brunswick; and a network of college and
new markets and take advantage of franchise
                                                      university hosts throughout New Jersey.
opportunities. The program assists construction
and construction-related professional service
companies to become pre-qualified and
classified for construction projects with NJ
School Construction Corporation.


NJSBDC Headquarters                                  NJSBDC Regional Centers

New Jersey Small Business Development                Atlantic and Cape May Counties SBDC
Centers                                              (Serving Atlantic, Cumberland and Cape May
Rutgers Business School-Newark and New               Counties)
Brunswick                                            5100 Harding Highway
University Heights - 49 Bleeker Street               Mays Landing, NJ 08330
Newark, NJ 07102-1913                                609-347-2174
FAX 973-353-1110                                     Affiliate Offices:                                         • Cape May County Chamber of Commerce,
                                                          Cape May Court House New Jersey
NJSBDC Specialty Programs (Statewide)                  • Sun Bank, Atlantic City
E-Business Services
49 Bleeker Street                                    Bergen Community College SBDC
Newark, NJ 07102-1913                                (Serving Bergen County)
800-432-1565                                         Bergen Community College c/o Ciarco Learning                             Center
                                                     355 Main Street
Emerging Markets/Special Projects                    Hackensack, NJ 07652
43 Bleeker Street                                    201-489-8670
Newark, NJ 07102-1913
973-353-5950                                         Kean University SBDC                    (Serving Union County)
                                                     East Campus, Room 242
Government Procurement Programs                      Union, NJ 07083
43 Bleeker Street                                    908-737-4220
Newark, NJ 07102-1913
973-353-5960                                         Affiliate Offices:                             • The Incubator in Plainfield
                                                       • Rexplex in Elizabeth
International Trade Program
49 Bleeker Street                                    Mercer/Middlesex SBDC at The College of NJ
Newark, NJ 07102-1913                                (Serving Mercer and Middlesex Counties)
800-432-1565                                         2000 Pennington Ave                         Ewing, NJ 08628
Technology Commercialization Center
43 Bleeker Street                                    Affiliate Offices:
Newark, NJ 07102-1913                                  • Trenton Business and Technology Center
800-432-1562                                           • Rutgers Center for Advanced Foods                                    Technology, Piscataway

                        For more information visit

Monmouth/Ocean SBDC                             Rutgers, The State University Of New Jersey
(Serving Monmouth and Ocean Counties)           Campus At Camden - SBDC
Brookdale Community College                     (Serving Camden, Gloucester, Salem and
Larrison Hall, Room 202                         Burlington Counties)
765 Newman Springs Road                         325 Cooper Street
Lincroft, NJ 07738                              Camden, NJ 08102
732-842-8685                                    856-225-6221

                                                Affiliate Offices:
Affiliate Office:
                                                  • Camden County College in Camden
  • Ocean County College in Toms River
                                                  • Gloucester County Library in Mullica Hill
                                                  • Gloucester County Business and Economic
New Jersey City University SBDC
                                                     Development in Woodbury
(Serving Hudson County)
                                                  • Salem      County  Dept.    of    Economic
20 College Street
                                                     Development in Salem
Jersey City, NJ 07301
                                                  • Camden County Store in Voorhees
                                                  • Burlington County Library in Westhampton

Affiliate Offices:
                                                Rutgers, The State University Of New Jersey
  • Fleet Community Renaissance Initiative
                                                Campus At Newark - SBDC
     Center, Jersey City
                                                (Serving Essex County)
  • Hudson County Community College, Jersey
                                                University Heights
                                                43 Bleeker Street
  • Bayonne Economic Development Corporation,
                                                Newark, NJ 07102-1897

Raritan Valley Community College SBDC
                                                Centenary College/Skylands SBDC
(Serving Hunterdon and Somerset Counties)
                                                (Serving Warren, Morris and Sussex Counties)
Route 28 and Lamington Road
                                                475 Rt. 57 West
Information Center, South Building
                                                Washington, NJ 07882-9605
North Branch, NJ 08876
                                                 908-852-1400 Ext. 2136
Mailing Address:
Raritan Valley Community College                Affiliate Office:
Corporate and Continuing Education                • County College of Morris in Randolph, NJ
P.O. Box 3300                                        07869
Somerville, NJ 08876-1265
908-526-1200 x8516                              William Paterson University SBDC
                                                (Serving Passaic County)
Affiliate Offices:                              300 Pompton Road
  • Franklin Township Municipal Building,       Wayne, NJ 07470
     Somerset                                   973-754-8695
  • Yardville National Bank, Flemington
                                                Affiliate Office:
                                                  • Paterson Urban SBDC in Paterson


Business Management Counseling                         Air Services Development Office
from Service Corps of Retired                          2 Gateway Center
Executives (SCORE)                                     Newark, NJ 07102
                                                       (973) 645-3982
Individuals who are already in business or
                                                       By appointment only
who are planning on going into business can
obtain free business counseling from SCORE
                                                       CAPE MAY COUNTY
– Counselors to American’s Small Business.
SCORE, which is sponsored by the Small                 Main Street Wildwood, Inc.
Business Administration, is a 10,500 – member          3306 Pacific Avenue
volunteer association of business executives and       PO Box 1781
professionals that provides small businesses           Wildwood, NJ 08260
with advice and counsel. For more information          732-505-6033
and/or assistance contact the SCORE location           By appointment only
nearest you.
                                                       Cape May County Chamber of Commerce
                                                       Crest Haven & Garden State Parkway
                                                       Cape May Courthouse, NJ 08210
County Listings
ATLANTIC COUNTY                                        By appointment only

Byrd Computers
                                                       ESSEX COUNTY
1501 S. New Rd.
Pleasantville, NJ 08232                                U.S. Small Business Administration
609-484-9503                                           2 Gateway Center, 15th Floor
10 am – 1 pm & 6 pm – 8 pm Tues/Thursday               Newark, NJ 07102
Also by appointment Monday/Saturday                    973-645-3982
                                                       Monday thru Friday 9:00am - 2:00pm
BERGEN COUNTY                                

Community Services Bldg. of Bergen County
                                                       North Essex Chamber of Commerce
327 E. Ridgewood Avenue
                                                       3 Fairfield Ave.
Paramus, NJ 07652
                                                       West Caldwell, NJ 07006
Friday 9:30am – Noon
                                                       By appointment only

Women’s Center
                                                       GLOUCESTER COUNTY
108 W. Palisade Ave.
Englewood, NJ 07601                                    See Camden County
3rd Wednesday 9 am-12:30 pm                            HUDSON COUNTY

                                                       Jersey City Economic Development Corporation
Greater Hackensack Chamber of Commerce
                                                       30 Montgomery Street
5 University Plaza Dr.
                                                       Jersey City, NJ 07302
Hackensack, NJ 07601
                                                       201-333-7797, Ext. 12
                                                       Monday & Wednesday 9:00am - 2:00pm
By appointment only
                          For more information visit

Secaucus Free Public Library and Business   Southern Monmouth Chamber of Commerce
Resource Center                             Colfax Plaza
1379 Paterson Plank Rd.                     2510 Belmar Blvd., Suite 1-2o
Secaucus, NJ 07093                          Wall, NJ 07119
201-330-2083                                732-280-8800
By appointment only                         Every other Tuesday 2 pm-4pm

Union City Public Library                   Wall Township Library
324 43rd St.                                2700 Allaire Road
Union City, NJ 07087                        Wall, NJ 07719
201-866-7500                                732-449-8877
By appointment only                         1st & 4th Monday 7 pm-9 pm

North Bergen Free Library                   Western Monmouth Chamber of Commerce
8411 Bergenline Ave.                        17 Broad Street
North Bergen, NJ 07047                      Freehold, NJ 07728
201-869-4715                                732-462-3030
By appointment only                         Thursday 2 pm-4-pm

HUNTERDON COUNTY                            Northern Monmouth Chamber of Commerce
                                            500 State Highway 36, Suite 204-205
See Mercer or Somerset County
                                            Navesink, NJ 07752
                                            Every other Wednesday 3 pm-5 pm
Brookdale Community College
765 Newman Springs Road                     Brookdale College Learning Center
Lincroft, NJ 07738                          213 Broadway
732-224-2573                                Long Branch, NJ 07740
By appointment only                         732-229-8440, Ext. 3000
                                            Every other Thursday 2 pm-4 pm
Eastern Monmouth Area Chamber of Commerce
170 Broad Street
Red Bank, NJ 07701
Every other Thursday 2 pm – 4

Monmouth County Library
125 Symmes Drive
Manalapan, NJ 07726
Tuesday 2pm - 4pm;
Thursday 7 pm – 9 pm


MORRIS COUNTY                                           SOMERSET COUNTY

Morris County Chamber of Commerce                       Raritan Valley Community College
25 Lindsley Drive, Suite 105                            Route 28 & Lamington Road
Morristown, NJ 07960                                    North Branch, NJ 08876
973-539-3882                                            908-526-1200 ext. 8235
Monday 9 am - Noon                                      Tuesday s 7 pm – 9 pm
                                                        Wed. 1 pm-3 pm
County College of Morris                                Thursday 10 am –Noon
214 Center Grove Rd.                                    By appointment
Student Center
Randolph, NJ 07869                                      SUSSEX COUNTY
                                                        Sussex County Community College
Thursday 9 am-Noon
                                                        College Hill, E-101
                                                        Newton, NJ 07860
Fairleigh Dickinson University
285 Madison Avenue
                                                        Every other Monday 9:15 am - 12:15 pm
Madison, NJ 07940
                                                        Every other Tuesday 6:30 pm - 8:30 pm
Wednesday 9 am – Noon
                                                        UNION COUNTY

OCEAN COUNTY                                            Suburban Chamber of Commerce
                                                        71 Summit Avenue
Toms River Township Municipal Building
                                                        Summit, NJ 07901
33 Washington Street
Toms River, NJ 08753
                                                        Tuesday 9 am – Noon
Tues.-Thurs.10 am - pm;
                                                        Union Township
Tues. & Thurs. 6:30 pm-8: 30 pm
                                                        Chamber of Commerce
                                                        355 Chestnut Street
Southern Ocean County Chamber of Commerce
                                                        Union, NJ 07083
265 West Ninth Street
Ship Bottom, NJ 08008
                                                        Tuesdays 9 am– Noon
Thursday 10 am - 3:00 pm
                                                        Greater Elizabeth Chamber of Commerce
                                                        Independence Community Bank
                                                        456 N. Broad Street
See Camden County                                       Elizabeth, NJ 07208
                                                        Tuesday by appointment.

                                                        Plainfield Public Library
                                                        8th St. at Park Ave.
                                                        Plainfield, NJ 07060
                                                        908-757-1111, Ex.144
                                                        By appointment
                           For more information visit

Westfield Area Chamber of Commerce               Frequently Utilized Telephone
105 Elm St.                                      Numbers
Westfield, NJ 07091
                                                 Federal Trade Commission - Northeast Region
                                                 1 Bowling Green
                                                 New York, NY 10004
                                                 877-FTC-HELP (382-4357)
Warren County Community College
Skylands SBDC                                    NJ Department of Law & Public Safety, Division
475 Rte. 57 West                                 of Consumer Affairs
Washington, NJ 07882-9605                        124 Halsey Street
908-689-9620                                     Newark, NJ 07102
1st Monday evening of each month                 973-504-6200

The Women’s Business Center                      NJ Library Association
The Women’s Business Center supports and         P.O. Box 1534
encourages women’s business ownership            4 West Lafayette Street
by providing a full spectrum of programs to      Trenton, NJ 08608
maximize business growth and profitability,      609-394-8032
simplify management methods, improve
business skills and obtain a support, referral   NJ Retail Merchants Association
and resource network.                            332 West State Street
                                                 Trenton, NJ 08618
The Center is operated by the New Jersey         609-393-8006
Association of Women Business Owners
(NJAWBO) and is partially funded by the U.S.     NJ State Bar Association
Small Business Administration’s Office of        1 Constitution Square
Women’s Business Ownership, the State of New     New Brunswick, NJ 08901
Jersey, the Women’s Entrepreneur Foundation      732-249-5000
and corporate sponsors.
                                                 NJ State Chamber of Commerce
NJAWBO Women’s Business Center                   216 West State Street
Windsor Business Park Bldg. 4B                   Trenton, NJ 08608
186 Princeton Hightstown Rd.                     609-989-7888
West Windsor, NJ 08550
609-799-5101                                     Business Action Center                                   225 West State Street - P.O. Box 820
                                                 Trenton, NJ 08625-0820


7(a) Loan Guaranty Program 37                        New Jersey Department of Environmental
7(M) MicroLoan Program 43                            Protection 35
8(a) Program 52                                      New Jersey Economic Development Authority
Bonding 54-56                                        32, 35, 66
Business Employment Incentive Program 33             New Jersey Sales Tax 21
Business Loans 29                                    New Jersey Self-Employment Assistance 25
Business Plan 4                                      New Jersey Small Business Development
Business Plan Outline 6                              Centers (NJSBDC) 73-76
Casino Industry 59                                   New Jersey Transit Corp. 51, 60
Construction Contracts 59                            New Jersey Turnpike Authority 60
Contractors 49, 59, 70, 71                           Partnerships 9, 14, 15
Copyrights 11                                        Patents 12, 13
Corporations 16                                      Port Authority of NY/NJ 51, 60
Counseling 25, 77                                    Procurement Resources 59-60
Division of Consumer Affairs 80                      Regional Alliance for Small
Employees 22-24                                      Contractors (RASC) 70
Entrepreneurial Training Initiative 70               Registration 7, 8, 17-19
Exempt Use Certificate 21                            SCORE 65, 77
Ex-Im Bank 66                                        Small Business Administration 37-44, 52, 57
Exporting 61-68                                      Small Business Start-up Money 29
Federal Tax Information 8                            Sole Proprietors 9, 14, 16, 18-23, 50
Filing Sales Tax Returns 21                          South Jersey Transportation Authority 60
Franchising 45-48                                    Tax Hotline 23
Identification Number 8                              Technology Companies 36
Income Taxes 8, 16, 17, 21                           Trademarks 11
Incorporation 9                                      Trade Name 9
Industrial Site Recovery Act (ISRA) 28               Venture Capital Firms 29
Insurance 23-25                                      Wage and Tax Statement (W-2) 23
Loan Guarantees 66                                   Wages 27
Loan Proposal 29                                     Worker Health and Safety 27
Location 6, 18                                       Workers’ Compensation 25
Marketing 5, 10
New Jersey Department of Agriculture 67-68

                        For more information visit

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