SBA-backed loans in N.J. topped $855M this year

By Emily Bader
New Jersey | Oct 31, 2019 at 11:20 am

The volume of loans for small businesses in the state topped $855 million this year, according to the U.S. Small Business Administration New Jersey district office’s report on the period between Oct. 1, 2018 through Sept. 30, 2019.

The loans were given out to entrepreneurs that otherwise wouldn’t have access to capital, the SBA said.

A total of 1,946 loans were provided to New Jersey small businesses and entrepreneurs this year, according to Al Titone, SBA New Jersey district director. However, when compared to FY 2018, the number and amount of SBA-backed loans was higher — 2,291 loan approvals for $905 million.

When looking nationally, both SBA’s flagship 7(a) Guarantee and 504 loan programs totaled 58,000 loan approvals for $28 billion.

“A strong economy is powering America’s 30 million small businesses, and the SBA’s FY19 numbers bear that out,” Chris Pilkerton, SBA acting administrator, said. “When the economy is doing well, 7(a) lenders are more willing to provide capital without the need for a federal loan guarantee.  Our 504 and Microloan programs continued to grow from last year, as all of these loans are designed to create jobs and grow all small businesses in communities across the country.”

The average loan size for an SBA-backed loan in New Jersey was $493,000, with 40% or 775 loans going to new businesses and 60% or 1,171 loans going to existing businesses, Titone said.

“When you are investing $855 million in New Jersey small businesses, which SBA helped to realize this year, you are going to have solid economic impact,” Titone said. “This past year’s loan activity helped to retain over 8,500 jobs and create another 6,350 jobs in the state.  SBA is proud to play a part in contributing to the current 3.1% unemployment rate New Jersey is experiencing right now.”

The top five New Jersey industries with 15 or more loans from the SBA approved include: Full-service restaurants, 122 loans for $84 million; child day care services, 48 loans for $51.4 million; beer, wine and liquor stores, 42 loans for $42.7 million; hotels (except casino hotels) and motels, 15 loans for $31.4 million; and lessors of nonresidential buildings (except miniwarehouses), 17 loans for $18.4 million.

The top five counties in the state with 100 or more SBA loans approved include: Bergen County, 315 loans for $157 million; Middlesex County, 180 loans for $75.3 million; Monmouth County, 153 loans for $74 million; Morris County, 144 loans for $43.1 million; and Essex County, 140 loans for $66.2 million.

A main driver of loan volume in the state was a network of 114 lenders that made at least one SBA loan approval during the 2019 fiscal year. The top five lenders include: TD Bank, 599 loans approved for $65 million; M&T Bank, 108 loan approvals for $14 million; Wells Fargo, 97 loan approvals for $19 million; Santander Bank, 77 loan approvals for $23 million; and JPMorgan Chase Bank, 76 loan approvals for $18.2 million.

“Together, the federal government and our resource partners continue to support small businesses throughout New Jersey and the nation,” Steve Bulger, SBA Atlantic regional administrator, said. “We do it through our programs that are helping to create and retain jobs, as well as providing financial stability in the communities that we serve.”

Emily Bader | ebader@roi-nj.com | emilybader