NJ sees big increase in small business loans

Loan approvals for small businesses are up in New Jersey, according to the latest figures from the U.S. Small Business Administration (SBA).

During the period from Oct. 1, 2013 to Sept. 30, 2014, the number of loan approvals to New Jersey small business owners increased by 16 percent. Overall, 1,347 loans were approved, totaling $654 million, a 3 percent increase from the previous fiscal year.

"I would much prefer to see more loans in the hands of people than more dollar amounts, even though both were up - so for me, this is great," said Al Titone, district director of SBA New Jersey.

The loan data showed that over 30 percent of the loans approved went to start-up businesses, while nearly 70 percent went to existing companies.

"Being able to get money into folks' hands is critical to the expansion of the business, and the vitality of downtown areas in New Jersey," Titone said.

While admitting that economic growth has been slower than many would like, Titone said it seems things are starting to pick up in New Jersey.

"We were waiting for folks to kind of step in who were waiting for the expansion, and I think that we saw a lot of that this year," Titone said.

One of the things the SBA focused on this fiscal year was providing smaller loans of $150,000 or less.  Titone said the smaller loans have been essential for underserved communities.  The program was originally scheduled to expire on Sept. 30, but it has been extended through fiscal year 2015.

Overall, small business loans increased in 18 of New Jersey's 21 counties. Small businesses in the state's urban areas also an increase. Bergen County led all counties in the state with the most SBA lending, with 208 loans approved for nearly $90 million.  Middlesex County followed with 129 loans, totaling almost $64 million. Salem and Warren Counties had the least amount of loans.

The SBA worked with a total of 106 lenders in the state during the fiscal year to get loans to small companies. The leading lender in New Jersey was TD Bank.

Across the nation, 52,044 loans were approved for $19.19 billion, representing a 12 percent increase in the number of loans over fiscal year 2013.