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SBA on Pace to Surpass 2015 Loan Totals in NJ

The U.S. Small Business Administration reported today that loan data from the first three quarters of the agency’s fiscal year 2016, the period for October 1, 2015 thru June 30, 2016, showed that New Jersey small business owners received 1,289 loans for $611 million, an increase of 7.3 percent in loan approvals and a 12 percent increase in dollar volume over last year’s totals for the same time period.

“New Jersey small business owners continue to be the benefactors of a steady increase in SBA loan approvals and dollars,” said SBA New Jersey District Director Al Titone. “There is no question that we are on pace to approve more loans and dollars to small businesses across the state than we did in all of fiscal year 2015.  Currently, we are on pace to approve over 1,800 loans for over $850 million.”

Titone noted that his office is already seeing the benefits of a new rule that went into effect on June 24, which allows the SBA to refinance eligible fixed assets and business expenses through its 504 loan program. “Already, 504 loan approvals are up 22 percent ahead of last year’s totals at this time and dollars are up a whopping 105 percent,” said Titone. “When this program kicks in over the last quarter of fiscal year 2016, I expect to see a dramatic increase in 504 and overall SBA lending throughout the state.”

According to Titone, the average size of an SBA loan in New Jersey is currently $474,421.   He also noted that 13 of the 21 counties in the state saw an increase in SBA lending over the first nine months; six counties saw a decrease in loan approvals; while two counties saw no change.  “I cannot stress enough how important SBA lending is to the economic growth of New Jersey,” added Titone.  “So far this year, our loan approvals have helped to create 5,209 new jobs throughout the state and helped to retain an additional 6,869 jobs.  That’s the type of impact SBA has on the local economy.”

Leading the way in SBA lending during the first three quarters was Bergen County with 194 loans for $84 million. Middlesex County was second with 109 loans for $77 million and Monmouth County followed in third with 106 loans for $55 million. Ocean County followed with 88 loans for $37 million; and Essex County with 83 loans for $43.2 million.

Wells Fargo Bank was the top SBA lender during the first three quarters, approving 172 loans for $23.6 million.  TD Bank followed with 153 loans for $24 million. JPMorgan Chase Bank ranked third, approving 75 loans for $11.2 million.  Rounding out the top five lenders were M&T Bank with 46 loans for $13 million; and Santander Bank with 49 loans for $5.5 million.

“We’re confident that we are going to see a big surge in lending over the next two months,” said Titone. “Lender confidence remains good and traditionally we see a flurry of activity during the last quarter.  I fully expect to see fiscal year 2016 loan activity to finish ahead of last year’s totals. We are prepared to finish out the fiscal year on a high note.”

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