SBA Reports a 35 Percent Increase in Loan Approvals to NJ Small Business Owners

Loan approvals from the U.S. Small Business Administration are up 35 percent in New Jersey this year.  From October 1, 2014 thru July 31, 2015, small business owners from around the state have received 1,456 loans for $688 million.

Despite a brief interruption in lending, two weeks ago when the agency hit its $18.7 billion lending cap, the SBA is back on track thanks to quick action from Congress that increased that ceiling to $23.5 billion through a bill that President Obama signed into law.

SBA Regional Administrator Kellie LeDet, who joined Congressman Leonard Lance on a walking tour of the Westfield Business District early today, said “We are grateful to Congress and the president for their support of SBA’s lending programs.  We have to continue to build on the momentum that we have seen here in New Jersey.  There is a great possibility that we could finish out Fiscal Year 2015 by approving 1600 loans for a total of $800 million in the state.”

“There is no doubt that the economy is trending upward,” said LeDet, “Small businesses represent a significant percentage of job creation in America and the Obama Administration is making an unmatched commitment to entrepreneurship. We like to say that small business is the engine that drives the economy, but it is capital that adds fuel to the engine that sparks economic growth and contributes to a robust economy.”

According to SBA New Jersey District Director Al Titone, the average SBA loan for a small business owner in New Jersey is $473,000, down slightly from last year’s average of $478,000.  “Offering no fee incentives on loans of $150,000 or less is a big part of the reason why the average loan has come down this year,” said Titone. “However, we are seeing unprecedented growth in SBA loan approvals in 18 of the 21 counties throughout the state. The economy is improving and the numbers reflect that our lenders have confidence to invest in small businesses with a variety of SBA loan products.”

Bergen County led the way with 238 loan approvals for $92.4 million. Monmouth County ranked second with 142 loans for $66 million. Middlesex County followed with 134 loan approvals for $86.4 million, while Union County ranked fourth with 105 loan approvals for $61.3 million.  Rounding out the top five was Camden County with 91 loans for $42 million.

Topping the list of lenders who approved the most SBA loans was TD Bank with 212 loans for $28.8 million.  Ranking second was Wells Fargo with 146 loans for$28.2 million, followed by JPMorgan Chase Bank with 125 loans for $21 million. Santander Bank ranked fourth with 64 loans for $10.4 million and M&T Bank rounded out the top five with 55 loans for $10.1 million.

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