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Ewing, NJ -- Nov. 3, 1999 - For Immediate Release
A manufacturer of semiconductors will be able to sustain substantial business growth with financing provided by the New Jersey Economic Development Authority (NJEDA) with Summit Bank through NJEDA's New Jersey Technology Fund.
Discovery Semiconductors, Inc. will use the $360,000 loan for working capital and purchase of equipment to support remarkable growth and job expansion.
Abhay M. Joshi, President of Discovery, said, "We are expanding the company across the board. The new jobs will include chip assemblers, engineers, sales, and marketing staff," explaining that current business plans call for increasing the company's number of employees from 14 to 36 within the next two years.
Discovery manufactures optoelectronic and fiberoptic chips used by most of the leading telecommunication companies in wide bandwidth fiberoptics applications like the Internet. The industry is enjoying explosive growth as today's communications systems demand high speed semiconductors to process and transmit information.
The company utilized $3 million in Small Business Innovation Research Contracts from the U.S. Air Force, the Army, and NASA to research and develop the technology for its products. About two years ago, it decided to expand into commercial markets but needed financing.
The company learned about the NJEDA when Joshi attended an agency seminar in Trenton for business people. "At the time, there was no loan program for high-tech companies. About a year ago, we talked again and learned there was a new program that might work for our expansion."
The program is the New Jersey Fund administered by the NJEDA. The program provides loans between $100,000 and $3 million to foster growth of high-tech businesses in the state. The NJEDA may participate in the bank loan up to $250,000 for working capital and up to $500,000 for fixed assets to a qualified borrower, and also can guarantee up to 50 percent of the bank portion of a loan made through the Technology Fund.
"The New Jersey Technology Fund is one of several initiatives of the NJEDA to foster the location and expansion of high-tech industries in New Jersey that is vitally important to the future competitiveness of the state's economy," said Anthony R. Coscia, chairman of NJEDA.
Under the program, Discovery received a $360,000 loan with 75% coming from Summit Bank, N.A. and 25% of the loan from NJEDA which is also guaranteeing 50 percent of the bank's portion. The loan is for a term of five years. The NJEDA portion is at an interest rate of 6 1/4%.
"I am happy that the state has recognized the need to help high-tech companies," said Discovery's Joshi. "If the State backs more companies like Discovery, within 10 years New Jersey will be as robust as Silicon Valley. The NJEDA program is a great first step to leveling the playing field."
He added, "Without the NJEDA, we would not have received this loan. I am gratified that the NJEDA instituted the Technology Fund program."
The NJEDA was established in 1974 to build business and create jobs. It has arranged more than $13 billion in financing since its inception. For more information on NJEDA's program, call (609) 292-1800, visit NJEDA's web site at www.njeda.com or send an e-mail to njeda@njeda.com.
For additional information, including complete product specifications, operational capabilities and pricing or to discuss your application in detail, please call Discovery at 609-434-1311 or fax 609-434-1317.
