Small Business

SBA Loan Volume Tops $855M in 2019

The U.S. Small Business Administration (SBA) New Jersey district office reported that during FY 2019 (the period of Oct. 1, 2018 thru Sept. 30, 2019) lending for  New Jersey small businesses topped $855 million. These loans went to entrepreneurs that otherwise would not have had access to capital to start, grow, or expand their small businesses.

According to SBA New Jersey District Director Al Titone 1,946 New Jersey small businesses and entrepreneurs received SBA-backed loans for $855 million compared to FY 2018 totals of 2,291 loan approvals for a record $905 million.

On a national level, both SBA’s flagship 7(a) Guarantee and 504 loan programs totaled approximately 58,000 loan approvals for a little over $28 billion.

“A strong economy is powering America’s 30 million small businesses, and the SBA’s FY19 numbers bear that out,” SBA Acting Administrator Chris Pilkerton 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.”

“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,” said Titone. “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.”

Titone also noted that the average loan size for an SBA loan in New Jersey was $493,000 and that of the 1,946 loans approved 40% or 775 loans went to new businesses, while 60% or 1,171 loans went to existing businesses.

There were 10 counties in the state that had 100 or more SBA loan approvals.  The top five included Bergen County with 315 loans for $157 million; Middlesex County with 180 loans for $75.3 million; Monmouth County with 153 loans for $74 million; Morris County with 144 loans for $43.1 million; and Essex County with 140 loans for $66.2 million.

Helping to drive the loan volume in New Jersey were a network of 114 lenders that made at least one SBA loan approval during FY 2019.  Leading the top five lenders was  TD Bank  with 599 loan approvals  $65 million; M&T Bank with 108 loan approvals for $14 million; Wells Fargo with 97 loan approvals for $19 million; Santander Bank with 77 loan approvals for $23 million; and JPMorgan Chase Bank with 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,” said SBA Atlantic Regional Administrator Steve Bulger, who oversees all agency programs and services for New Jersey, New York, Puerto Rico and the U.S. Virgin Islands.  “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.”

SBA NJ Loan Approvals by County – FY 2019

COUNTY # of Loans Sum of Orig Gross Amt
BERGEN 315            $156,506,300.00
MIDDLESEX 180 $75,347,600.00
MONMOUTH 153 $73,696,600.00
BURLINGTON 90 $68,419,400.00
ESSEX 140 $66,283,400.00
CAMDEN 122 $56,716,200.00
OCEAN 132 $46,936,400.00
MORRIS 144 $43,100,600.00
HUDSON 100 $41,367,400.00
UNION 122 $41,300,700.00
PASSAIC 107 $38,752,700.00
SOMERSET 60 $36,001,000.00
GLOUCESTER 52 $24,055,600.00
MERCER 66 $23,390,000.00
ATLANTIC 42 $13,297,800.00
CAPE MAY 35 $12,083,800.00
SUSSEX 16 $11,830,100.00
WARREN 22 $10,137,000.00
HUNTERDON 30 $8,718,100.00
CUMBERLAND 15 $6,487,800.00
SALEM 3 $185,200.00
Grand Total 1946 $854,613,700.00

NJ Industries Receiving 15 or more Loans from the SBA – FY 2019

Industry # of Loans Sum of Orig Gross Amount
Full-Service Restaurants 122 $84,060,700.00
Child Day Care Services 48 $51,430,900.00
Beer, Wine, and Liquor Stores 42 $42,698,200.00
Hotels (except Casino Hotels) and Motels 15 $31,389,300.00
Lessors of Nonresidential Buildings (except Miniwarehouses) 17 $18,423,800.00
All Other Amusement and Recreation Industries 18 $18,131,300.00
Fitness and Recreational Sports Centers 42 $17,840,100.00
Electronic Shopping and Mail-Order Houses 43 $17,575,100.00
Other Miscellaneous Durable Goods Merchant Wholesalers 15 $15,705,000.00
Limited-Service Restaurants 57 $10,873,700.00
Plumbing, Heating, and Air-Conditioning Contractors 27 $  8,801,500.00
Beauty Salons 25 $  8,247,500.00
Supermarkets and Other Grocery (except Convenience) Stores 18 $  8,028,600.00
Offices of Physical, Occupational and Speech Therapists, and Audiologists 15 $  6,310,000.00
Fine Arts Schools 16 $  6,201,700.00
General Freight Trucking, Local 52 $  5,882,000.00
Landscaping Services 32 $  5,625,500.00
Nail Salons 20 $  4,975,000.00
General Automotive Repair 23 $  4,957,000.00
Offices of Lawyers 22 $  4,165,000.00
Other Personal Care Services 16 $  4,026,800.00
Residential Remodelers 58 $  4,004,500.00
General Freight Trucking, Long Distance, Truckload 25 $  3,190,000.00
Electrical Contractors 26 $  3,143,200.00
Drycleaning and Laundry Services (except Coin-Operated) 15 $ 2,422,500.00
Snack and Nonalcoholic Beverage Bars 15 $2,074,300.00
New Single-Family Housing Construction (except Operative Builders) 17 $1,755,000.00
Sports and Recreation Instruction 15 $1,204,000.00

About the 7(a), 504 programs

The 7(a) loan program is the SBA’s primary program for providing financial assistance to small businesses and offers guarantees on loans to small businesses of up to $5 million on reasonable terms and conditions. 7(a) loans are commonly used for acquiring land, purchasing equipment, or working capital. The CDC/504 loan program provides capital to small businesses for the acquisition of fixed assets to promote economic development in the form of long-term fixed-rate financing on reasonable terms. Under this program, the SBA authorizes Certified Development Companies (CDCs) to provide financing to small businesses with the help of third-party lenders (typically banks). The maximum loan amount is generally $5 million; however, certain eligible energy-efficient or manufacturing projects may qualify for up to $5.5 million.

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