New Jersey SBA lending trending in right direction

12/19/2011

Small business lending in New Jersey saw increases in both loan approvals and overall dollar amounts compared to 2010, Suburban Trends reports.

Harry Menta of the state's SBA District Office revealed an 8 percent increase in the number of loans dispersed across the state in 2011 (1,290) compared to 2010 (1,198).

Furthermore, the dollar amounts for this year's loans were significantly higher year-over-year, rising from $455 million to $678 million.

"If they're making more loans, it's showing that banks are at least willing to make capital available," Menta told the news source. "Many times, businesses need a cushion of capital to get through those tough spots."

While optimism is high, Menta cautions that loan figures are still not even half of what they were during pre-recession days, when annual loans in the state would reach upwards of 3,000. Because of this, he doesn't expect substantial growth to be realized until at least 2013.

In other state news, the SBA announced earlier this month that disaster loans would be available to small businesses of all sizes in Bergen County that suffered negative effects from Hurricane Irene and Tropical Storm Lee.