SBA lending up in New Jersey this year

8/10/2011

Small business lending may be on the rise in the Garden State. The New Jersey U.S. Small Business Administration district office recently reported a 41 percent rise in this year's backed loans as of the third fiscal year quarter, totaling $543 million in approved funding.

"I am encouraged that SBA loan programs are experiencing positive growth throughout New Jersey," said district director Alfred J. Titone. "Anytime you can put 41 percent more capital in the hands of small business owners, it is bound to spur economic development. I see this as a sign that the economy is turning around. More dollars mean bigger projects, bigger projects mean significant economic impact for the state."

Preliminary data put New Jersey's unemployment rate at 9.5 percent for June, which was higher than the national average of 9.2 percent (the state currently ranks 38th in the nation). The employment situation may begin to show signs of improvement as the small business sector grows from the recent influx of SBA lending.

The SBA's 504 loan program, which is intended to help businesses acquire major fixed assets, has also seen growth in the first three quarters, meaning existing businesses are actively expanding in the state.