“There is no doubt that New Jersey small businesses are enjoying the benefits of an improving economy,” said SBA New Jersey District Director Al Titone. Loan approvals to New Jersey small business owners have increased 46 percent after the SBA eliminated fees for small loans.
“Last year the SBA introduced no fees for loans under $150,000 during fiscal year 2014,” said Titone. “The agency continues to offer this incentive to small business owners and by setting fees at zero effectively makes these loans cheaper for borrowers, encourages lending to small businesses that face the most constraints on credit access and creates lending opportunities important for underserved communities.”
Though the average SBA loan has dropped from $519,000 to $453,228, small business owners collected $177 million in loans from the SBA this year compared to last year’s $139 million.
“Lender confidence is high right now and we welcome the shift that is bringing more loans and dollars to small business owners throughout the state,” said Titone. During the first quarter of 2015, TD Bank topped the list disbursing 50 loans for $7 million. Chase Bank ranked second approving 37 loans for $6 million.
“Economic indicators like an improved Gross Domestic Product, that is predicted to grow 3.1 percent in 2015, combined with a reduction in energy costs is putting more money in the hands of consumers,” said Titone. “Those dollars eventually lead to an increased demand for small business owners’ products and services and translate to an upsurge in overall sales.”
Out of New Jersey’s 21 counties, 17 have seen an increase in SBA loan approvals. Sussex County had the highest loan increase of 450 percent while Middlesex County collected the largest amount of loans with $32,756,000 in loans. Cape May County ranked second with a 350 percent increase in loans along with Bergen County with a total of $19,986,000 in loans. Lending for small business owners has greatly increased, but the SBA is still working to improve the resources available for New Jersey’s entrepreneurs.
“We still have a lot of work ahead of us to make sure we are addressing all the needs of small business owners who can benefit from SBA’s programs and services.” said Titone. “The good news is that we are way ahead of last year’s pace and it is important for us to continue that momentum throughout fiscal year 2015.”
