New Jersey veterans received 16 percent more loans and 92.2 percent more dollars from the U.S. Small Business Administration than they did in 2015, it was reported.
In making the announcement, SBA’s New Jersey District Director Al Titone said that New Jersey veterans received a total of 43 loans for $17.3 million during fiscal year 2016, compared to the 37 loans for $9 million that they received the previous year.
“These totals reflect the significant outreach by the district to try to get in front of veteran entrepreneurs to let them know about our products and services, and to ensure that our NJ veterans have more access to the resources and offerings that the SBA has for veterans,” said Titone. “Another huge advantage came last year when Congress passed a bill that was signed into law by the president that provided permanent fee relief for veterans and military spouses on SBA Advantage Loans of $150,000 and under. This measure has made loans less expensive for our veterans. While the average veteran loan size in New Jersey was $403,000, 44 percent of SBA loan approvals to NJ veterans were for $150,000 or less.”
In addition to loan fee relief, Titone cited the SBA’s Boots to Business program offered by the agency as part of the Department of Defense’s Transition Assistance Program (TAP). “The curriculum continuum includes steps for evaluating business concepts, the foundational knowledge required to develop a business plan and information on SBA resources available to help access start-up capital and additional technical assistance,” explained Titone. “We are reaching military personnel just before they transition back into civilian life. The agency is continuing its aggressive approach by taking this program to the military bases and teaching those about to separate from the military all about entrepreneurship.”
According to SBA Regional Administrator Kellie LeDet, who oversees all agency programs and services throughout New Jersey, New York, Puerto Rico and the U.S. Virgin Islands, the increase in local loans is ahead of what the SBA is seeing on a national level. “Nationally, we have seen a 4.3 percent increase in the number of loans that veterans received during fiscal year 2016 and a -4.7 percent decrease in dollar volume,” said LeDet. “I attribute the local increase to outstanding outreach to the veterans’ community and having more tools available in the tool box than ever before to help veterans to expand or start a business in New Jersey.”
“Last year, we were fortunate to introduce Boots to Business: Reboot Entrepreneurship Training for Veterans,” said LeDet. “A new private-public partnership with The Marcus Foundation, First Data Corporation and Syracuse University’s Institute for Veterans and Military Families (IVMF) that SBA Administrator Maria Contreras-Sweet and SBA’s Office of Veterans Affairs initiated last year, has allowed us to host and support a half dozen Boots to Business: Reboot entrepreneurship training programs throughout New Jersey this past year.”
“Boots to Business Reboot has allowed us to reach out to veterans of all eras, service members (including members of the National Guard and Reserves) and their spouses,” added LeDet. “We have been encouraged by the response and support the veterans’ community has given this program. We are hopeful that the program will help even more veteran-owned businesses in 2017.”
SBA loans to New Jersey veterans ranged from as small as $5,000 to the largest loan of $2.7 million. Out of the 43 loans, 15 were approved to new businesses and 28 of the loans went to existing businesses. The loans helped to create 133 jobs and retain another 264 jobs.
Bergen County led the way in SBA veteran loan approvals with eight loans for $3.3 million. Middlesex County followed with four loans for $3.1 million. Rounding out the top five were Cape May County with four loan approvals for $794,000; Burlington County with four loans for $320,000; and Monmouth County with three loans for $625,900.
“We know that nearly 1 in 10 U.S. small businesses are veteran-owned, which represents approximately 2.8 million businesses,” said Ledet. “And those 2.8 million businesses are generating $1 trillion in sales. As this population continues to grow, we just want the veteran community to know that we stand ready to provide them with the programs and services to help them succeed.”
Veterans interested in learning more about the programs and services of the SBA should contact SBA’s Veteran Affairs Specialist Eugene Spillane at (973) 645-2427 or by visiting www.sba.gov/veterans.
SBA 2016 Loan Approvals SBA 2015 Loan Approvals
|County||# of Loans||$ Amount||County||# of Loans||$ Amount|
|Burlington||4||$ 320,000||Burlington||2||$ 160,000|
|Cape May||4||$ 794,000||Cape May||1||$ 100,000|
|Essex||2||$ 105,000||Essex||1||$ 800,000|
|Hudson||2||$ 45,000||Hudson||2||$ 45,000|
|Mercer||2||$ 522,000||Mercer||3||$ 733,000|
|Morris||1||$ 150,000||Morris||3||$ 625,900|
|Ocean||3||$ 180,000||Ocean||5||$ 631,000|
|Union||1||$ 117,000||Union||1||$ 10,000|